White House says crypto tax enforcement will help pay for bipartisan infrastructure deal

Jul 28, 2021 | The Block News | 0 comments

white-house-says-crypto-tax-enforcement-will-help-pay-for-bipartisan-infrastructure-deal

A months-in-the-making infrastructure bill in the U.S. Senate will be partially paid for by enhanced tax enforcement of cryptocurrency, the White House said Wednesday.

Though the final text of the deal — said to be struck Wednesday after a long period of at-times acrimonious negotiations between Democrats and Republicans on Capitol Hill — is not publicly available, a White House fact sheet mentions crypto tax enforcement as one of the spending offsets to help finance the multi-billion dollar infrastructure project.

The fact sheet notes:

“In the years ahead, the deal will generate significant economic benefits. 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.”

CoinDesk reported Wednesday that a separate fact sheet it reviewed said that the bill would raise some $28 billion from heightened reporting requirements for exchanges and brokerages, though it wasn’t immediately clear across what length of time that amount of money would be garnered.

News reports indicate that a test vote of the deal will take place in the Senate sometime Wednesday. However, given the fluid nature of the negotiations and divisions between GOP and Democrat negotiators of the deal and the 50-50 split of the Senate, a successful vote is not guaranteed.

For example, Republican senators have pushed back against the inclusion the enhanced IRS enforcement in the bipartisan bill, though it appears that the existing draft retains the crypto-specific provisions. Former President Donald Trump has also urged Republicans in the Senate to reject the deal.

This is a developing story and will be updated.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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