Crypto tax rules will reduce US budget deficit by $11 billion over ten years: White House

The US government budget for fiscal 2023 included approximately $11 billion in revenue over the next decade from modernizing rules for digital assets.

accordingly In US President Joe Biden’s 2023 budget, released by the White House on Monday, changing the digital asset tax rules will reduce the deficit by $10.9 billion between 2023 and 2032. The White House said it will “modernize the rules” to include certain taxpayer reporting on holdings of digital assets in foreign accounts, change mark-to-market valuation rules to include digital assets. and requiring financial institutions and brokers to report additional information. In addition, he suggested “treating securities lending as tax-free to include other asset classes and to address the inclusion of income.”

The Biden administration estimates that modernizing tax rules to include digital assets will bring the government $4.9 billion in revenue in 2023. In addition, the budget included $52 million to combat “misuse of cryptocurrencies.” Expanding the Department of Justice’s ability to deal with cyber threats in the United States. Funding will be provided by the government agency “More agents, faster responsiveness, and better ways to gather and analyze intelligence.”

Crypto tax rules will reduce US budget deficit by $11 billion over ten years: White House
Crypto tax rules will reduce US budget deficit by $11 billion over ten years: White House

President Biden said his administration is on track to reduce the US deficit by more than $1.3 trillion by 2022.. Among the president’s proposals to increase government revenues is a call for a 20% income tax rate for US households with more than $100 million, about 0.01% of households, the White House said.

The budget proposal came after Biden signed an executive order on March 9 that sets out a regulatory framework for digital assets in the United States. The order requires government agencies to investigate the potential deployment of a digital dollar and to coordinate and consolidate policy into a federal framework for cryptocurrencies.

The current US government has included cryptocurrencies both in their budget estimates and in a regulatory framework.However, the world’s largest democracy recently voted to create a framework for digital assets through tax policy. On Friday, Indian lawmakers passed a finance bill that included an amendment for a 30 percent tax on digital assets and non-fungible token transactions. In addition, the framework does not allow for the deduction of business losses when calculating income.

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