America’s Crypto Leaders Sound the Alarm Before Today’s Infrastructure Bill Vote - Decrypt
Our observation and synopsis:
Initially they were against cryptocurrencies on the ground that it encourages money laundering, terrorist financing, tax evasion and uses way too much non-green energy. Now that the first two arguments are out of the way for being untenable, they now concentrate on the third and forth grounds.
Congressmen are like the vultures awaiting for their prey.
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Among the countries in the world, the U.S is probably the strictest in terms of tax regulations and enforcement. Yet, in the U.S the tax regime is designed such that even large corporation can pay zero taxes in some years using certain technical provisions in their tax law such as carrying forward previous years' losses, employee compensation via stocks and tax credits for investments in R&D.
Kathryn Haun, general partner at crypto-friendly venture capital firm Andreessen Horowitz, urged Congress to reject the amendment that pinned the tax reporting obligations on proof-of-stake entities.
Forcing proof-of-stake networks to report information to the IRS "would do little to accomplish its stated goal of tax compliance and would ultimately lower U.S. tax revenues" by driving crypto out of America, she said.
That is a sharp observation and a wise piece of advice by Kathryn Haun. There are many resource-poor countries in the world that are hungry for business and for their own share of revenue streams. Just like the congressmen they do are awaiting for opportunities to bring in the revenue whichever way they can. The U.S with an extremely unfriendly tax regime could easily lose their crypto businesses to these countries.
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