A new proposal in the United States to tax virtual currencies like bitcoin is being blocked by two political opponents, Senator Rand Paul and Congressman Chris Lee. These two politicians, along with many others in congress, oppose the New bitcoin Tax plan put forth by congressman Ron Paul. This proposed legislation, dubbed the CryptoCurrency Enhancement Act, would impose a half-a trillion-dollar tax on the miners of the bitcoin protocol. The miners are also known as pools and there are currently a few dozen pools around the world. This proposed legislation is similar to the Stop Online Piracy Act which is currently making its way through the United States Senate.
The main difference between the CryptoCurrency Enhancement Act and the Stop Online Piracy Act is that the latter legislation goes after those who download copyrighted material illegally. The Crypto Currency Enhancement Act, however, would only go after online activities. As you might have guessed, privacy concerns are the driving force behind this proposed legislation.
In addition to this proposed legislation, the Warren amendment would also come into play. The Warren amendment is referred to as the Jobs and Growth Act. The Jobs and Growth Act would if passed would grant tax breaks to businesses in the US that are designed to help people obtain professional degrees. Those people would be those wishing to obtain degrees in anything related to technology, computer science, engineering, or business. There are currently quite a few colleges in the United States that offer these types of programs.
The problem, however, is that the bitcoins mined by these colleges would be given to the students themselves instead of to the state. The bitcoins mined by the schools would then be sold to investors. These investors would then pay taxes on the amount of money earned from the sales of bitcoins. However, it would be interesting to note that this would be the first time in history that a national tax would be imposed solely based on the profits created from something that was not specifically designated to be sold for a particular purpose.
Bitcoin Tax Plan of the US government
This new proposal has met with some resistance from the US government. At present, the US government does not consider the mines of bitcoins as being mined. They view it more as being a research operation. The miners are able to control the supply and sell off their new bitcoins through a process of complex algorithms. Without the intervention of the federal government, the bitcoins being mined would simply be recorded by a ledger and thus no taxes would be charged on them.
Critics of this plan believe that the bitcoins being sold should be made available to individuals through normal taxation. They argue that the bitcoins currently being produced would be less valuable than the costs associated with paying taxes on them. However, the government's argument would appear to have merit in the face of the fact that the government itself currently obtains more than it pays out.
The government would also like to see any Warren amendment applied to the Internal Revenue Code, which regards any legislation that attempts to limit or prevent the Internal Revenue Service from taxing its own money. The Warren amendment was included in the Revenue Code as a means of preventing the U.S. government from interfering with state taxation matters. The Warren amendment was included to prevent the U.S. from taxing organizations for activities that occurred outside of the country. Many states had been attempting to enact similar laws but the Warren amendment made it possible to legally tax any activity that takes place within the state.
If the U.S. government truly believes that taxation is an unfair practice, they may introduce bills to reverse it. Even though most tax problems stem from wealthy individuals or large businesses that have an economic sway, the government could still introduce legislation to solve problems with the income or mining of bitcoins. The bitcoins are mined from numerous locations around the world. Some areas such as Australia, Canada, and the United States are known for high-quality mining resources. Although the bitcoins being mined from the United States would be difficult, the bitcoins from other countries could be worth more