The US government’s fiscal year 2023 budget includes about $11 billion in revenue over the next decade from modernizing digital asset regulations.
According to U.S. President Joe Biden’s fiscal year 2023 budget released by the White House on Monday, the change in digital asset taxation rules will reduce the deficit by $10.9 billion from 2023 to 2032. Holding digital assets in foreign accounts, amending market revaluation rules, involving digital assets and requiring financial institutions and cryptocurrency brokers to provide additional information. In addition, it was proposed to “treat securities loans as tax-free to include other asset classes and consider including income.”
The Biden administration has estimated that modernizing tax rules to include digital assets will generate $4.9 billion in revenue for the government in 2023. In addition, $52 million is included in the budget to combat “cryptocurrency misuse” by expanding the Department of Justice’s ability to combat cyberthreats. To the United States. The funding will provide the government agency with “more agents, enhanced response capabilities, and enhanced intelligence gathering and analysis capabilities.”
President Biden has said his administration is on track to reduce the US deficit by more than $1.3 trillion in 2022. Among the president’s proposals to increase government revenue is one requiring a 20 percent income tax rate on US households worth more than $100 million—roughly 0.01% of households, according to the White House.
Under the leadership of @POTUS, America is back on the move. – We have created over 6.5 million jobs in 2021. – Our economy posted its strongest growth in nearly 40 years – Unemployment fell to 3.8%. – And the deficit shrank by more than $350 billion last year.pic.twitter.com/lkiH9pZvTb — White House (@WhiteHouse) March 28, 2022
The proposed budget follows Biden’s March 9 signing of an executive order creating a regulatory framework for digital assets in the United States. The order will require state agencies to explore the possibility of deploying a digital dollar, as well as coordinate and consolidate policies regarding a federal structure for cryptocurrency.
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The current administration in the United States now includes cryptocurrencies in both its budget estimates and the regulatory framework. However, the world’s largest democracy recently voted to create a foundation for digital assets through tax policy. On Friday, Indian lawmakers passed a finance bill that included an amendment to impose a 30 percent tax on digital assets and non-fungible token transactions. In addition, the framework will not allow trading losses to be deducted when calculating income.