- The Senate recently proposed using taxes on the cryptocurrency industry to partially fund the infrastructure plan.
- The Joint Committee on Taxation estimates that taxes on crypto could raise $US28 ($AU38) billion over a decade.
- It’s the latest move by the government to regulate and clarify the rapidly growing cryptocurrency space.
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Strengthening tax enforcement on the cryptocurrency industry could generate billions in revenue to fund the Senate’s bipartisan infrastructure package, according to government estimates.
Last week, the Senate released a proposal to increase the requirements for crypto brokers and investors to report their transactions to the IRS. The tax increases could raise $US28 ($AU38) billion to fund the infrastructure plan, according to the New York Times, which cited an estimate by the Joint Committee on Taxation.
The tax revenue is just a small fraction of the $US550 ($AU749) billion in federal funding Congress is seeking to build out public transit, bridges, water, and other physical projects.
It’s also the latest move by the government to regulate and clarify the rapidly growing cryptocurrency space. On Thursday, Representative Don Beyer introduced a bill in the House that aims to create a widespread framework for regulating digital assets. The bill seeks to provide a regulatory definition for the top 90% of all cryptocurrencies by market capitalization.