Cryptocurrency transfers of more than $ 10,000 should be disclosed to U.S. tax authorities under Biden’s new directives that come amid a regulatory framework for digital currency.
The US move, which was unveiled a day after China banned digital currency controls, is part of a series of measures aimed at curbing tax evasion.
The price of bitcoin, the most widely traded cryptocurrency, fell by 5% in the US after announcing its demand.
Idatsata a confusion for a few hours Bitcoin trading Wednesday when the central bank in China warned financial institutions to accept cash transactions as payments or offers. The price of bitcoin fell by 30% after the comments were not forthcoming.
The U.S. economy has said that cryptocurrency money poses “a major problem of public awareness by helping them to do illegal activities including tax evasion”, quoting a statement from the European Central Bank this week, which said “illegal use of illegal goods” is a cause for concern.
The US sentiment is part of a report on the Economy report showing how White House member Joe Biden is preparing to close the so-called “tax gap” by strengthening the Internal Revenue Service. The report is the latest in a series of White House proposals that could lead to more affluent Americans paying higher taxes.
Biden’s administration wants to close the tax gap – the difference between the U.S. tax and payroll taxes – by investing about $ 80bn in the IRS and expanding its income-generating operation to get rich people avoid tax evasion.
The proposal incorporates new requirements for disclosure to financial institutions, which may need to share information with the IRS of all cash flows in and out of bank accounts, as well as existing reports.
According to the Treasury, the total “tax difference” was $ 600bn last year, and is expected to reach $ 7tn in the next ten years if it is not adjusted. Treasure states that about 99% of tax-deductible taxes are paid annually, but following “inconsistent” income-generating strategies that are probably linked to high-income earners – such as repayment or borrowing – is estimated to be lower.
Treasure estimates suggest that the IRS reform will raise $ 700bn in additional taxes over the next 10 years, and $ 1.6tn over the next decade.
According to Treasury, according to the President’s budget, inflation rates will not be higher than those earning less than $ 400,000 a year.
Ideas are part of Biden’s $ 1.8tn American Family Plan, a prestigious package that, if approved by Congress and signed into law, will add to the huge increase in federal funding for child care, higher education, and family and medical holidays in the US.
The White House has offered to pay the fines, among other things, by about $ 1.5tn in raising taxes for wealthy Americans – including double the income tax for people earning more than $ 1m. The program of he wants to The increase in taxes has resulted in a going backwards among other critics of Wall Street and in the United States of America.
Anti-tax targets could be a major target for Washington lawmakers, especially Republicans who have raised red flags over Donald Trump’s 2017 tax reforms.
The American Families Plan, launched by the White House last month, is the third of Biden’s financial performance, following the $ 1.9tn fundraiser, which was signed into law in March, and $ 2.3tn mind built which is discussed at Capitol Hill.
Republicans have strongly rejected the president’s proposal, criticizing Democrats for wasting money that exacerbates inflation. GOP leaders have paid $ 600bn against the president, although Republican lawmakers say in recent days they have opened a $ 800bn and $ 900bn package.