Biden to Step Up Crypto Tax Enforcement to Help Fund $1 Trillion US Infrastructure Plan
U.S. President Joe Biden and lawmakers have agreed on the details of a roughly $1 trillion bipartisan infrastructure package with measures to step up tax enforcement around crypto assets.
Taxing Crypto Transactions to Fund US Infrastructure Plan
- The White House announced Wednesday that President Joe Biden and a bipartisan group of lawmakers have agreed on the details of “a once-in-a-generation investment” in the U.S. infrastructure.
- The bill will be taken up in the Senate for consideration, the White House stated, adding that “In total, the deal includes $550 billion in new federal investment in America’s infrastructure.”
- Measures to step up tax enforcement around crypto assets were added to the infrastructure bill at the last minute to raise funds to finance the infrastructure plan.
- The $550 billion will be spent over the next eight years on roads, bridges, high-speed internet, public transport, electric vehicles, airports, and shipping ports, among other areas.
- The measures impose heightened reporting requirements on crypto brokerages and exchanges. They will be required to provide details on cryptocurrency transactions of $10,000 or more to the Internal Revenue Service (IRS).
- The provisions are expected to raise an additional $28 billion from cryptocurrency transactions.
- A fact sheet published Wednesday by the White House explains, “In the years ahead, the deal will generate significant economic benefits,” adding:
It is financed through a combination of redirecting unspent emergency relief funds, targeted corporate user fees, strengthening tax enforcement when it comes to crypto currencies, and other bipartisan measures, in addition to the revenue generated from higher economic growth as a result of the investments.
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