Bitcoin Forum

Elon Musk, Jack Dorsey, and Ted Cruz are among those criticizing planned crypto tax rules, which could help fund the infrastructure package

As a bipartisan Senate moved toward a vote on President Joe Biden's infrastructure package, a chorus of leaders from Silicon Valley and Washington raised concerns about a provision that would add new taxes on crypto.

"The infrastructure deal contains DANGEROUS provisions that would devastate crypto and blockchain innovation," Sen. Ted Cruz said on Saturday.

Tesla CEO Elon Musk called the legislation "hasty," saying now was not the time for lawmakers "to pick technology winners or losers."

A bipartisan Senate bill last week included new tax rules for crypto trading firms and brokers, a move expected to raise about $28 billion in new tax revenue over a decade. The White House said the revenue would help fund President Joe Biden's infrastructure package.

Critics jumped on the idea. They said the tax rules would apply to a larger-than-planned group of crypto companies — some of which wouldn't be able to meet the reporting requirements.

Read more https://www.businessinsider.com/elon-musk-ted-cruz-jack-dorsey-crypto-tax-tech-infrastructure-2021-8

I don't know about being hasty but if someone who owns a multi-billion dollar company, I don't think that it's not Elon's call to say when will these regulation be put into place. I don't know much about Ted Cruz though, I feel he has some big stake on something crypto related that he doesn't want it to be taxed.

And they're basically right. That law can easily make the industry move to more friendly countries.
Jack Dorsey made a tweet thread yesterday (https://twitter.com/jack/status/1424219725626814465), quite well written imho, asking for better law and coming with proper arguments too.


Small change with great effect:



Argument:

Why can't the Federal Reserve just print 28 billion dollars and fund those infrastructure projects,instead of raising taxes or creating new taxes? ;D
Money printing was OK for the 1.9 trillion USD Biden stimulus plan.
How come money printing is not OK anymore when it comes to only 28 billion dollars?This is peanuts for the Federal Reserve. ;D
Anyway,the US based crypto companies will just move somewhere outside the USA,if such taxes get imposed.
This isn't such a big deal,but I just don't understand the US Democratic party and the Biden administration.

The biggest point to make about this is that the US is not the biggest element involved in Bitcoin.
If they wanna run and hide from Bitcoin, that's their problem.

I wish it was so, so that we can say China is out, the US is out, now let's move on. But no matter what anyone thinks of the US, if this law is really passed and implemented, it will be a serious blow to the crypto industry. The biggest crypto companies are there, most of the money that comes into crypto comes from there, and let’s not forget that the impact of US politics on the rest of the world is very significant.

If things go downhill there, it won't be anything like what happened in China, it will be xx times worse - but I honestly wish I was completely wrong when it comes to this case.