President Biden eyes $5 billion revenue from crypto in 2023

Share This Post

The recently submitted Budget proposal for the 2023 fiscal year reveals that President Biden is looking to generate more tax revenue by adopting new crypto tax reporting rules. A US Treasury Department revenue explanation accompanying the proposal reveals the extent of the new regulations.

According to the White House, the government can make up to $11 billion in the next decade by “moderniz[ing] rules” applying to digital asset financial accounting and reporting practices. In the short term, the government project that it can raise almost $5 billion in 2023 alone.

New regulations to guide crypto tax report

Are you wondering how they plan to execute this? The Biden administration believes that applying the mark-to-market rules to crypto could lead to a $6.6 billion tax revenue between the 2023 and 2032 fiscal calendar.

The “mark to market” rule is a mode of appraising assets using the current market conditions rather than the asset’s purchase price.

This allows the government to tax unrealized gains. Thus, taxpayers will have to file tax returns once the value of a cryptocurrency goes up, even if they don’t sell. 

Furthermore, the Biden administration will require banks and other financial institutions to share information about the value of non-residents and foreign owners of some companies with the IRS. 

This, according to the Treasury, will affect anyone who seeks to evade “tax reporting by creating entities through which they can act.” The department believes this can add $2 billion to the government coffers in the next decade.

The government also proposed a new rule that’ll require any American with more than $50,000 in offshore accounts to report their holdings. This may also affect crypto holders and the Treasury Department and bring $2.2 billion in revenue over the next decade.

Treasury Department targets crypto holders

According to the Treasury Department:

“The global nature of the digital asset market offers opportunities for US taxpayers to conceal assets and taxable income by using offshore digital asset exchanges and wallet providers.”

While there are proposals targeting other assets, there seems to be a keen focus on crypto assets. This is likely due to what the Treasury believes to be the potential of digital assets for tax evasion.

The administration also wants to apply the same rules guiding other lending markets to crypto loans. But there’s no revenue reason given for this proposal. The budget proposal will go into effect on January 1, 2023. But before then, one can expect more deliberations on it at the congress.

The post President Biden eyes $5 billion revenue from crypto in 2023 appeared first on CryptoSlate.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Binance Founder CZ Warns: Receiving Crypto This Way Could Instantly Empty Your Wallet

Crypto owners risk losing everything by accepting assets via shared private keys or pre-configured wallets, warns Binance’s former CEO, CZ, emphasizing the danger of shared access CZ Cautions

Ethereum Price Back In The Red: A Deeper Drop Ahead?

Ethereum price extended losses and dropped below the $3,550 zone ETH is showing bearish signs and might decline further below the $3,150 level Ethereum started a fresh decline below the $3,550 zone

Bitcoin Price Under Pressure: Could The Slide Continue?

Bitcoin price extended losses and traded below the $100,000 zone BTC is showing bearish signs and might continue to move down toward the $91,200 support zone Bitcoin started a fresh decline from the

Ripple Moves Big Money, RLUSD Sees Distribution, XRP Holds Key $2 Support

Ripple’s XRP has managed to maintain its position above $2, despite an 82% dip against the US dollar this week Over the weekend, massive onchain XRP transactions caught attention, and the

aelf Introduces aevatar Intelligence: No-Code, No Limits for AI Agents

Singapore, 23 December 2024 — aelf, a leading AI-enhanced Layer 1 blockchain, has launched aevatar intelligence, a revolutionary no-code framework for AI agents The framework, built atop

Vaneck’s 2025 Crypto Predictions: Bull Market to Persist, Anti-Crypto Policies Ending

Asset management firm Vaneck has shared its 2025 crypto predictions, highlighting a strong bull market, rising bitcoin and ethereum prices, growing altcoins, and increased institutional and