A new bill introduced in the Senate by Patrick Toomey with Kyrsten Sinema might exclude small crypto transaction valued up to $50 from taxation.
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A press release states that the so-called Virtual Currency Tax Fairness Act includes an aggregation rule to treat all sales or exchanges that are part of the same transaction as one sale or exchange. Toomey believes that the bill will allow Americans to use cryptocurrencies “more easily as an everyday method of payment by exempting from taxes small personal transactions like buying a cup of coffee.”
His views are shared by Jerry Brito, Executive Director of Coin Center, who noted that the introduced bill would “foster use of crypto for retail payments” He continued:
“More importantly, it would foster the development of decentralized blockchain infrastructure generally because networks depend on small transaction fees that today saddle users with compliance friction that no doubt costs the economy more than the tax revenue that’s otherwise generated.”
It remains unclear if the bill gets any update before the midterm elections. What’s more important is that Toomey so far has no plans to re-elect, which might bring challenges for the bill in the future.
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