Bloomberg has reported that the U.S. Senate intends to tighten crypto taxation on investors and traders in order to raise $28 billion from that industry in taxes.
This would be part of the $550 billion necessary to fund the transportation and power systems across the country.
— Bloomberg Crypto (@crypto) July 29, 2021
Planning to rake in $28 billion in crypto taxes
The Senate proposal suggests that the IRS must now tax crypto transactions, collecting data from crypto brokers. Businesses would have to report transfers of digital currencies that exceed $10,000.
The bipartisan plan is set to invest $550 billion in the U.S. transportation network, broadband and utilities. The final target has been reduced from the $579 billion proposed last week.
Simultaneously, the Senate is voting for a $3.5 trillion stimulus for social programs in the U.S.
Crypto becomes an area for tax cheats
According to IRS officials, the crypto industry is largely turning into a shelter for those who are hiding their taxes from the federal government.
In an attempt to increase control over crypto transactions, last year the IRS introduced an addition to Form 1040, as well as to the individual tax return.
Executives in the crypto sphere refuse to agree to this proposal, saying that some companies would simply be unable to collect the data required by the IRS.
Senator Warren and her wealth tax on crypto
Senator Elizabeth Warren also mentioned that she wants to impose a wealth tax, including on people who made their fortunes on crypto. She said that it does not matter to her what assets the wealth to be taxed is tied to.