The White House announced Wednesday that a months-in-the-making infrastructure plan in the United States Senate will be largely funded by increased bitcoin tax enforcement.
Though the bill's text isn't public, a White House information sheet lists crypto tax enforcement as one of the spending offsets to help fund the multibillion-dollar infrastructure project.
According to the fact sheet:
"The agreement will bring major economic benefits in the coming years. In addition to the revenue gained through higher economic growth as a result of the investments, it is funded by a combination of unspent disaster relief funds, targeted business user fees, strengthened tax enforcement when it comes to crypto currencies, and other bipartisan initiatives."
According to a separate fact sheet examined by CoinDesk on Wednesday, the law would raise $28 billion via increased reporting requirements for exchanges and brokerages, though it wasn't immediately clear how much money would be raised over how long.
The deal's crypto aspects are outlined as follows, according to paperwork obtained by The Block:
"To ensure that digital assets (including bitcoin) are correctly reported to the IRS, the bipartisan infrastructure framework imposes information reporting obligations on them. The provision also incorporates an update to the definition of broker to reflect the realities of digital asset acquisition and trading. The clause further clarifies that broker-to-broker reporting applies to all transfers of covered securities, including digital assets, as defined by section 6045(g)(3).
Furthermore, digital assets have been added to the existing requirements requiring enterprises to disclose cash payments exceeding $10,000."
The $28 billion amount, which appears to be an estimate from the Joint Committee on Taxation or JCT, was also included in the data given with The Block.
According to news sources, the Senate will have a test vote on the agreement on Wednesday. A successful vote is not certain, and no final provisions will be known until the language is publicly introduced, given the fluid nature of the negotiations and disputes between GOP and Democrat negotiators, as well as the Senate's 50-50 divide.
Republican senators, for example, have objected to the inclusion of heightened IRS enforcement in the bipartisan plan, despite the fact that the current text appears to keep the crypto-specific elements. Former President Donald Trump has also pushed Senate Republicans to reject the agreement. If the Senate passes a bill, it must be reconciled with legislation passed by the Democratic-controlled House of Representatives.
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