Senate proposal to not tax crypto transactions below $50

image.png

Two senators proposed a bill to not tax crypto taxes below $50.

“While digital currencies have the potential to become an ordinary part of Americans’ everyday lives, our current tax code stands in the way,”
- Senator Patrick Toomey

Honestly, I don't see this passing, but this would be a huge win for crypto and every day transactions. Granted $50 doesn't buy you much these days but when you buy a cup of coffee with crypto you got to figure out the gains on that transaction from when you originally purchased the crypto and then keep track of it as an individual tax event. It is an absolute nightmare to prepare for tax season.


image.png

The current crypto tax code in the US is so cumbersome and difficult it is completely impractical. Having a tax event on every transaction even if like kind discourages getting invovled in a lot of opportunities as it just isn't worth the hassle.

Granted many choose not to pay taxes, you can only get away with that when you talking a few thousand dollars. Once you start making significant amounts of money you are really putting your livlihood at risk by not properly reporting. Under the current tax code it is really difficult to use crypto for every day purchases and it is easy to just use fiat.

This change would be a huge win for crypto adoption, but I highly doubt it would pass.

Posted Using LeoFinance Beta



0
0
0.000
20 comments
avatar

To dissuade citizens from utilizing cryptocurrency, certain African countries levy significant fees on crypto transactions. It is past time for the government to collaborate with crypto institutions.

0
0
0.000
avatar

Not sure, creates tons of significant tracks.

0
0
0.000
avatar

If you think you can hide, you really got a thing coming.

0
0
0.000
avatar

Haha, it's not about hiding - it's about timing!

0
0
0.000
avatar

I think it would great for HIVE in particular because of the countless microtransactions…but yea, probably won’t make it through smh

0
0
0.000
avatar

Let me guess, both Senators are from Wyoming? Because that's where enlightened crypto thinking seems to be happening with politicians these days.

0
0
0.000
avatar

Sounds good to me! I don't know how the system works in the US but if every transaction has an additional tax it doesn't sound very practical. Also, I don't really know if governments and banks really want to fully support crypto but it would be interesting to see what are they going to decide.
!PIZZA

0
0
0.000
avatar

It's crazy how they are trying to keep us under the thumb, lol. But hey, most of my transactions these days are less than $50 so that's all good with me, lol. $45 per transaction to keep it safe, lol

0
0
0.000
avatar

Jeez, even $50 is low. I feel like transactions under $100 would be fair... but as others have mentioned here its unlikely to pass. We'd be lucky if we could get it for under $1. SMH.

0
0
0.000
avatar

It would be great for something like Hive where — technically speaking — every time you are rewarded 2 cents for a comment upvote, there's a "taxable event." Well, at least if you want to split hairs.

Sadly, you're probably right that it won't make it through. Still, it's nice to see something like this even getting consideration.

=^..^=

0
0
0.000
avatar

hive amazon soon?

Free transactions and tax free :O

0
0
0.000
avatar

Why I don't trade. Then again Hive-Engine redemptions would be a nightmare lol

0
0
0.000
avatar

I don't know how they will get around the divisibility aspect. Like you point out, there will be a lot of $50 transactions. Larger purchases will potentially be broken down into sub-purchases. Left-rear-tyre, left-windscreen-wiper etc etc.

You could also realise all your gains tax-free by buying and reselling $50 items. Like NFTs.

0
0
0.000
avatar

That works fine on minute level, but once you start dealing with big amounts it just isn't doable.

0
0
0.000