Popular Ohio senator Rob Portman has revealed that the senate was trying to get enough information on cryptocurrencies to create the anticipated bill. He added that the bill is not completed and that the news came out too early. Portman is one of Ohio’s senators, and sources claim that he has been working on creating a law that would prevent crypto holders from evading taxes on their asset gains.
The digital asset space continues to grow globally, making many lawmakers from different regions worldwide accommodate the growing industry. This includes adding legislation that would regulate and promote the virtual assets. The senator’s move to create a law that would reduce tax evasion was necessitated by the current situation that makes tracking tax earning difficult.
Portman proposes reporting on crypto earnings
In a recently held interview with the senator, he explained how he hoped that the proposed bill gets enough support. This would be deeply discussed during the congressional recess, where the lawmakers find a solution to recent tax evasion by crypto earners.
The politician explained that the lawmakers are yet to complete the bill and gather more details on the novel industry. The crypto industry is fairly new, making it necessary for regulators and policymakers to understand the platform before creating relevant regulations.
Despite the differences between Democrats and Republicans, Portman revealed that they both want US residents to pay taxes on crypto earnings. The country battles with tax evasion, and crypto’s industry growth has worsened the situation. He believes that the current goal is to get adequate information on cryptocurrencies for tax purposes.
The senator drew attention to the huge tax gap in the US, which analysts explain that recently hit $1 trillion. The lawmakers believe that cryptocurrencies have aided tax evasion, making the region lose money in taxation.
The US loses billions in its tax gap
The country’s Internal Revenue explained last year how over 80% of the region’s residents paid taxes regularly and on time in 2011-2013. Even with the regular and on-time payments, statistics show that the US lost around $400 billion during those years. The senator explained some recent details regarding the nation’s move to close tax gaps.
He was one of the first to propose the bill, and the IRS commissioner holds a similar belief as Portman regarding the taxes. The region’s IRS commissioner is Charles Rettig, and he believes that proper reporting for cryptos would reduce the tax gap.
Interestingly, Rettig has some reservations about cryptos as he had previously opined that Bitcoin cannot replace the dollar and that the coin is not visible by design. Asides from assets like Bitcoin, the commissioner added that NFTs are also not visible by design.
This comment could be due to the growing demands for NFTs, and people’s interests in selling their digital arts, music, paintings, and others. Other regions within the US have shown interest in creating laws on tax reporting for cryptos, which would likely mandate taxation for the sector.