Sirwin
Sirwin
POTUS Joe Biden

Understanding How Crypto Tax Proposals are Written in the USA

By cmoneyspinner | CryptoBloglines | 13 Apr 2023


Fellow writer MintDice.com published an excellent article titled "Joe Biden’s Crypto Tax: What Does it Mean for Crypto?".  I left a comment and another fellow writer crypto-dreams responded to my comment.  I feel the need to respond back and clarify my initial comment.  However, the explanation is rather lengthy, so I decided to publish this article instead.

~ I said:  "I am not ready to say that I agree or disagree regarding taxation. I’m just glad Biden is taking crypto seriously. Some politicians want to do away with crypto. I definitely disagree with that!"

~ crypto-dreams wrote in response to this comment:  "He’s not taking crypto seriously. He just wants to make sure they get all the taxes they can! Fuck the demonrats and their leftist ideology!"

This is my response to clarify my initial comment:

Do you think Biden or the Democrats ("demonrats") wrote those tax proposals? I used to work for the federal government. Most civil servants have their jobs for 20 to 30 years which means they generally work under several different presidents.  We "servants" undergo background checks and some of the questions we are asked is about our political party affiliations, our religious beliefs, etc.

I am retired but I worked under every president since Jimmy Carter. The people who do all the “grunt work”, i.e. have to come up with the ideas, draft proposed legislation, etc. are the civil servants. When they are doing their work, nobody makes a distinction as to which political party they are in and they keep their ideology out of it. They just do their job and Biden just presents their finished product. That's the reality of how things get done in our country. That's how things trickle up FROM the desk of the lowest organizational unit in a federal agency all the way up TO the president's desk in the White House.

“Leftist ideology”? That's just bullcrap politicians are spitting into the wind.

Most civil servants are loyal dedicated hard-working patriots and they don't let their political differences or ideologies interfere with their real work.  They write laws and regulations FOR THE PEOPLE because it's their job.  Most of them know and understand the current tax code, can recommend amendments, and can even write new tax laws. 

I BELIEVE:  Like it or not, crypto will eventually be accepted as taxable by the federal government, and the taxes collected will be used for “We the People”. It's just like how states finally accepted that the lottery was legitimate and then wrote laws to siphon off some of the earnings collected from people who play the lottery, and then put the money toward education and various other gov't programs that benefit the public. The lottery used to be gambling which used to be illegal. But it's not anymore.

Some non-US countries want to ban crypto and make it illegal. But the USA is not trying to ban crypto. (Although there are some politicians like Senator Warren who like to spit in the wind.)  Politicians and government officials appear to be suggesting it's better to try to regulate cryptocurrency.

Which is better?

(A) Ban crypto, make it illegal and force it underground. OR

(B) Accept crypto as real legitimate currency which means it is a potential source of revenues that can be collected and put into the government treasury; funds which can, in turn, be used for the public good.

Under the Biden Administration, it appears the USA has decided on (B) and they're in the process of ironing out the kinks and laying down a legal framework where the process can run smoothly.

By the way, the ways US laws are passed, there is usually a period where the public is allowed to comment on proposed laws and regulations.  The public is EVERYBODY WHO WANTS TO COMMENT.  They can be Leftist, Right-Wing, Republican, Democrat, Atheist, Gay, Jewish, Old, Young, People who own assault rifles, etc.  They each have a "voice".  Anybody who agrees or opposes can say so!  "Biden's Crypto Tax" simply means the proposed rules were initiated and drafted during the period of his Administration.  "We the People" write our own laws and ... we can un-write them too!  Many laws on the books have been overturned.  We can protest the overturning, legally challenge the overturning, and possibly get the laws reinstated.  Crypto tax laws are not "special" and they will undergo the same kind of agonizing nitpicking scrutiny.

EXAMPLE:  Not directly tax-related but the SEC wants to redefine the word "exchange".  Anybody got any questions, comments, etc.

https://twitter.com/SECGov/status/1646908537673490434

I BELIEVE in American democracy.

 

When considering the best way to approach crypto for the good of the country, I prefer (B) over (A). 

Nobody has to agree with me.  Let's agree to disagree.

 

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cmoneyspinner
cmoneyspinner

Freelancer since 2007. Always looking for various ways to make money online.


CryptoBloglines
CryptoBloglines

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