Congressman curbs double tax through crypto tax bill in North Carolina

The United States Congressman from North Carolina reintroduces crypto tax bill in North Carolina to provide relief from double taxation to the crypto sphere.

A tax bill with the objective of amending the Inter Revenue Service’s treatment of digital assets has now been forwarded to the United States House of Representatives Ways & Means Committee. The bill labeled as the Virtual Value Tax fix Act was initially bought forward in last year’s Congressional session.

Now a representative of North Carolina Ted Budd (R) has reintroduced this bill on July 25. This act will amend 1986’s Internal Revenue code and stop the double taxation on cryptocurrencies.

The previous law, the IR code fails to recognize the profits and loss of real property in transactions and hence puts a 40 percent tax across such trades. Ted stated that these policies hinder blockchain and crypto adoption.

Currently the trade of digital currencies is recognized as an asset, however, these cryptocurrency trades only provide one with simple consumer goods. If the law passes the double taxation would stop and cryptocurrency record-keeping would correct itself.

Ted is not the only one working for crypto regulation as at the start of July Tom Emmer bought forward a bill aimed at recognizing taxable events surrounding cryptocurrency forks and airdrops.

Meanwhile, Bitcoin has found strong support among the regulators as except Ted Budd, North Carolina representative Patrick Henry also strongly supports Bitcoin. In one event he was heard saying that Bitcoin has no capacity to be killed i.e. you cannot kill Bitcoin.