Governments, always, to balance their accounts, especially after a pandemic and the social expenses that imply it, try to tax everything and everyone they can in order to keep the public machine running.
As Adam Smith said: rates are valid, as long as they do not interfere in the freight, as long as they do not impact the laws of economics of supply by demand and prices by product stock.
Otherwise, if there is interference, the productive system ends up competing with the state itself and, therefore, will always be at a disadvantage.
In other words, not done properly, discussed and in consensus, the government starts to vampirize the system. In this case, the digital currency.
Last month, the new bipartisan infrastructure plan was demonstrated, which aims to raise US$ 28 billion from the cryptomarket's taxation.
However, for many this taxation can be an impediment to the growth of the entire sector. In addition to defending the interests of the traditional financial market.
Part of the controversy over the new proposal is the new amendment that used very vague terms like “Broker” which could mean anyone from portfolio developers, miners, P2P vendors and all other types of people connected to the industry.
With that, there is the concern of undue and exaggerated taxation of parts of the industry that could harm its growth as a whole.
Industry leaders have determined the amendments are disastrous.
Generally speaking, in short, everyone would become "brokers" and would be over-taxed as such.
This not only hinders those involved in the sector, but makes taxation impossible to apply.
Whenever a government proposes a tax, it must necessarily show what counterparty benefits the fees will bring to the affected sector.
In this case, the only justification is that there must be fiscal balance and that this sector, of cryptocurrencies, was not yet financially regulated.
Another justification is that, through taxation, it is possible to curb money laundering and, in addition, to track financial transactions - today in the dark - of cryptocurrencies with sensitive sectors of the North American national security.
The point is that, in the end, the current proposed amendment to the document makes part of the taxation efforts useless and may complicate different entities in the future that will be -unable- to comply with the new rules.
Interestingly, one of those who supported the movement against this new amendment was Seán Ono Lennon, son of legendary singer-songwriter John Lennon, formerly of Beatles.
Seán, who is also a singer-songwriter and big fan of Bitcoin, said he believes the cryptomarket threatens the traditional economic system and so it's no surprise that the White House supports a law that would hamper the industry's progress.
“The Cryptomarket threatens the pillars of economic and state hegemony, returning power to the people. With that, it's no surprise that the White House supports a law that could hamper the industry's progress in order to please leaders.” — Seán Ono Lennon (@sanonolennon) August 6, 2021
To normal eyes, he's right!
But cryptocurrencies are a new chapter of the traditional financial market, as mammals were for dinosaurs! And the dinosaurs couldn't stop the meteor.....at least not with taxes!
A second amendment, proposed by Democrat Ron Wyden and Republicans Cynthia Lummis and Pat Toomey, further clarifies the position of different industry insiders, exempting miners and developers from being considered intermediaries.
This plan, with the original amendment, or by patching the second amendment, will be passed by the Senate and we will have a considerable tax on the cryptomarket in the US.
Anyway, it's more of a repression movement against cryptocurrencies.
Again, regulation and taxation are inevitable consequences of the maturation of this important part of the global financial market.
But, this surcharge, like so many other acts that intend to subordinate cryptocurrencies to an old and outdated way of doing business, doesn't seem to be fair to those who are already inside the system!
The meteor labeled cryptocurrencies will fall to the earth of the financial system!
Just as dinosaurs became fossils, the fear that the current system has, if it doesn't adapt, will lead to the same end.
Cryptocurrencies are not the enemy.
They are the most balanced way to do business.
They are the boldest and most assured way of doing digital business with security and agility in the future.
They are the natural consequence for a generation born on the internet and that, as with internet speed, transacts, trades and has the same lack of patience that was used to the speed of digital response of the information that surrounds them.
The speed of change requires speed of adaptations.
The meteor will come!
Rates too!
And regulation will be the balance point!
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