New Bill to Repeal Tax on Bitcoin Payments Under $50 in US
A new bill has been proposed in the US Senate to prevent Americans from paying taxes on bitcoin payments of less than $50. What makes this bill special is that it is a bipartisan proposal. Republicans and Democrats join the party.
Digital money has great potential
Republican Senator Patrick Toomey is responsible for the bill. He told reporters: “Digital money has the potential to become a part of everyday American life, and our current tax law stands in the way of that.” Thus Toomey.
According to Toomey, the legislation will help Americans “easily use cryptocurrencies as a means of everyday payment by eliminating taxes on small personal transactions.” At the moment, Bitcoin as a means of payment is an impossibility, at least legally.
Every transaction with Bitcoin or other crypto is a taxable transaction, which means the dollar is a very attractive means of payment. Toomey and Cinema’s new bill could change that.
The current law is archaic
According to Democrat Suzan DelBene, the current law that applies to crypto is antiquated. “The antiquated law surrounding digital money didn’t take into account the potential it has in our daily lives. These laws treat digital money like a stock or an ETF,” DelBene said of the current law.
In that sense, this is an interesting development in America. A country where Bitcoin fits perfectly in theory in terms of norms and values. America is known as the “land of the free” and Bitcoin is the money without monopoly.
It seems to be seeping into US politics as well, as more and more politicians are standing up for Bitcoin. Something no one expected in the early years.
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