- A group of US senators have written to the Treasury and Finance Departments regarding unpaid taxes in cryptocurrencies.
- The letter, signed by Elizabeth Warren, Bernie Sanders, Bob Casey, and Richard Blumenthal, warns the departments about the need for new tax regulations.
- The senators claim that a $50 billion gap has already formed and if new regulations are not implemented, an additional $1.5 billion deficit will occur for the 2024 fiscal year.
This article discusses a letter penned by several US senators to the Treasury and Finance Departments, urging them to address the issue of unpaid taxes in the cryptocurrency sector. The senators warn of a growing financial gap, and the potential for further deficits if new tax regulations are not introduced.
Senators Highlight $50 Billion Tax Gap in Cryptocurrency
A group of US senators, including Elizabeth Warren, Bernie Sanders, Bob Casey, and Richard Blumenthal, have expressed their concerns about unpaid taxes in the cryptocurrency sector. In a letter addressed to the Treasury and Finance Departments, they warn of a $50 billion gap that has already formed due to unpaid taxes. They further caution that if new tax regulations are not implemented soon, an additional deficit of $1.5 billion could occur for the 2024 fiscal year.
The Call for New Tax Regulations
The senators are urging the departments to introduce new tax regulations to address the issue of tax evasion in the cryptocurrency sector. They argue that without these regulations, tax evaders and cryptocurrency brokerages will continue to exploit loopholes in the system, resulting in billions of dollars being taken from the US government each year. Despite the passage of two years since the introduction of a law related to this issue, the Treasury Department has yet to take any steps towards implementing the proposed regulations.
Previous Legislation and the Need for Further Action
The law referred to by the senators is the $1.2 trillion infrastructure bill that was passed amidst much controversy in August 2021. This legislation required companies acting as intermediaries in cryptocurrency transactions to provide more information for reporting purposes. However, the senators argue that this is not enough, and further action is needed to prevent the continued exploitation of the system and the resulting financial deficits.
Conclusion
In conclusion, the issue of unpaid taxes in the cryptocurrency sector is a growing concern for US senators. They are calling for the Treasury and Finance Departments to take action by implementing new tax regulations. Without these regulations, they warn of a growing financial gap and the potential for further deficits in the coming years.
