Jack Dorsey is the founder of Square and has called for a tax exemption of de minimis on Bitcoins (BTCThe cryptocurrency can be used for daily payments by allowing it to perform more transactions.
“We want Bitcoin to be everyday money ASAP,” Dorsey said On Wednesday, Square will be celebrating its integration of Bitcoin payment services Merchants can use their checkout or point of sales systems to get a discount.
He drew the attention of Wyoming Senator Cynthia Lummis who proposed a de minimis provision. part of a standalone crypto tax The bill for July exempting BTC transactions below $300 are exempt from the capital gains tax, with a maximum exemption of $5,000 per year.
All Bitcoin transactions in the US are subject to a capital gains tax. If the BTC price goes above its initial price, the owner must pay the tax.
Bitcoin proponents continue to press for tax exemptions to be granted on small BTC transaction to promote its use as the peer-topeer system of digital money envisioned by Satoshi Nakamoto, BTC’s creator. whitepaperIt is also used as a store-of-value asset.
Related: US lawmakers grapple with crypto tax policy amid government shutdown
The crypto industry and its supporters are pushing for tax exemption
In October, the United States Senate Committee on Finance conducted a hearing to discuss crypto-tax regulation. the US government shutdown.
Lawrence Zlatkin is the vice-president of tax for the crypto exchange Coinbase. He asked that the Senate codify an exemption from tax on crypto transactions up to $300.
Zlatkin claimed that exemptions would promote crypto-payments in retail commerce as well as ensure payment innovations in the US.
Many jurisdictions have already adopted the concept favorable tax treatments on digital assets In order to attract investments, the United Arab Emirates, Germany and Portugal are all included.
Crypto companies and funds are attracted to other jurisdictions by the favorable tax treatment. leaving the US at a competitive disadvantage Compare these early movers.
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Source: cointelegraph.com
