North Carolina Congressman Talks About the Crypto Tax Fairness Act and Virtual Value Tax Fix Bills
Ted Budd, a congressman from the state of North Carolina, has recently spoken at the House Ways and Means Committee. There, he defended the blockchain technology and highlighted two bills which he is hoping that will be able to gather some bipartisan support in order to be approved.
These bills are the Virtual Value Tax Fix of 2018 and the Cryptocurrency Tax Fairness Act. Both bills are related to taxes and cryptos, something that you may know that is pretty tricky in the United States as the laws are pretty old and hard to follow.
During his testimony to the committee, Budd affirmed that the development of the blockchain technology in the United States has to be protected and that this is basically a national security issue. It was a part of his argument that high taxes can be too burdensome for the industry to develop, so they should be reviewed.
He then proposed his Cryptocurrency Tax Fairness Act, a bill that was co-sponsored by him during the last administration and that he is ready to reintroduce this year. According to him, the new bill will extend the minims exemption for personal transactions using foreign currencies to cover all kinds of digital assets based on the blockchain, too.
The Republican politician also affirmed that he will update his own Virtual Value Tax Fix in order to make all digital assets properly recognized s property that can be differed under the Section 10(31) of the Income-Tax Act as well.
He decided to do it because he believes that without a law like this one there is a pretty serious risk that cryptocurrencies can be doubled taxed in some cases like when purchasing or selling something expensive.
One of his main arguments is that taxes of almost 40% are penalizing the digital world too much and that this will eventually curb innovation in the system and digital commerce. He affirmed that he wants to change the system that treats using crypto as the sale of an asset when they are simple purchases in the end.
Budd is a well-known champion of the blockchain technology, so this was not even the first time that he decided to defend cryptos. He has often come to the Congress in order to defend the idea that cryptos should be better regulated.
He also recently affirmed that the government should start more partnerships with associations like the Blockchain Association and Coin Center in order to help the technology to grow.