4 US Congressman wrote to IRS to ease tax on POS rewards - page 2.

so98nn

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Quote from: The Sceptical Chymist on August 05, 2020, 06:34:26 PM

Quote from: Baofeng on August 05, 2020, 06:06:35 PM

Will this encourage more investors to get on-board if the IRS will somewhat heed this call?

That's a damn interesting letter, and I thank you for posting it here OP.
I'm kind of shocked that congressmen are actually aware of their existence, much less concerned with the fair taxing of rewards from them.

They are congressman!! They need to support the nation by investing into the Presidential party and showing their upliftment through money, developments and supporting the Presidents ordeal.

This is big conspiracy and we as common man may not even understand the roots for same! They may not be thinking about the best interest of the technology but for their own benefits.

They know very well this is more or less public based investment and they can earn great deal of royalty and use that money in their Political Games

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Yogee

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Quote from: The Sceptical Chymist on August 05, 2020, 06:34:26 PM

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I don't have any idea how PoS coin rewards are taxed now, but I'd assume they'd be considered to be income if they're taxed at all. Maybe someone with some knowledge could clarify that.

Reading from different articles, I didn't see a clear tax guideline for POS coin rewards yet. It's currently treated by most as similar to mined bitcoins. They form part of ordinary income and are taxed according to their fair value at the time of receipt.

The current income tax bracket ranges from 10% to 37% and these Congressmen are proposing it should be under a different tax bracket. They're also proposing rewards should be taxed when they are actually sold and not when they are received.

Quote from: The Sceptical Chymist on August 05, 2020, 06:34:26 PM

Although it's an interesting letter, it remains to be seen whether anything comes of it. A lot of these suggestions don't lead anywhere, and I'm not sure how much influence these four congressmen have. I'll have to keep my eyes on it.

IRS is still trying to adapt with the fast evolving cryptocurrency market, so it's hard for them to keep up. But I think they're always open for changes and the summit they held last March 2020 inviting cryptocurrency representative is a good proof of that.

Quote from: Baofeng on August 05, 2020, 06:06:35 PM

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Will this encourage more investors to get on-board if the IRS will somewhat heed this call?

Tax incentive is always a good thing for business investors. It'll be the same case for reduced tax rates.

Darker45

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Quote from: Baofeng on August 05, 2020, 06:06:35 PM

Will this encourage more investors to get on-board if the IRS will somewhat heed this call?

Most probably, yes. As the concern stated by the 4 congressmen, "it is possible the taxation of 'staking' rewards as income may overstate taxpayers' actual gains from participating in this new technology." This could mean overtaxing those who are staking and this will certainly dissuade them from participating in PoS networks. This is in effect shooing investors away.

However, there is one thing I noticed which the congressmen might have overlooked. It is the probable assumption behind this line: "...these tokens could be taxed when they are sold." I am not sure whether there are many shops or stores which are accepting PoS altcoins such as DASH, Tezos, ATOM, or other PoS coins, but it is very possible that these coins could actually be treated as money, I mean spendable on its own. And so tax should be imposed to PoS coins even if they are not sold.

erikoy

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Quote from: TravelMug on August 05, 2020, 09:17:35 PM

I'm only familiar with Tom Emmer as one US congressman who are really pro-crypto stance.

For this to have some weight, there should be more congressmen to sign to petition and put pressure on IRS. Or at least some powerful person to lobby this. So this remains to be seen, we don't know if IRS will actually listen to these congressman, but this is a good initiative.

This will encourage the more investors due to ease of taxing on the system. If this will get adapted then pretty sure we can get much on it. However, we need more of them to push through this effort so that it will going to happen. It does need our support also so as to get this thing happen. Yeah I agree that there could be some powerful person to help this push through. It can get much if it will be influence by the likes of those people around in the congress.

TravelMug

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I'm only familiar with Tom Emmer as one US congressman who are really pro-crypto stance.

For this to have some weight, there should be more congressmen to sign to petition and put pressure on IRS. Or at least some powerful person to lobby this. So this remains to be seen, we don't know if IRS will actually listen to these congressman, but this is a good initiative.

meanwords

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Quote from: Velkro on August 05, 2020, 06:47:16 PM

Quote from: The Sceptical Chymist on August 05, 2020, 06:34:26 PM

That's a damn interesting letter, and I thank you for posting it here OP.

I've been interested in PoS coins for a while now, though I don't own any at the moment, and I'm kind of shocked that congressmen are actually aware of their existence,

I would be shocked too, but they could not be in the end.
Sometimes politicians give their sign over something they have no clue. Why? Because money, money can buy their signature and approval even when they dont understand it.
Thats why world is corrupted so much, because business buying way law is created and most often its bad for people.

They probably saw that POS is a hot topic right now especially ETH is going POS too with the new version 2.0.

The question is, will IRS respond to this in a positive way? If IRS somehow favor this, then wouldn't other projects respond to this? like POW projects and other algorithm asking for fewer tax too.

Velkro

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Quote from: The Sceptical Chymist on August 05, 2020, 06:34:26 PM

That's a damn interesting letter, and I thank you for posting it here OP.

I've been interested in PoS coins for a while now, though I don't own any at the moment, and I'm kind of shocked that congressmen are actually aware of their existence,

I would be shocked too, but they could not be in the end.
Sometimes politicians give their sign over something they have no clue. Why? Because money, money can buy their signature and approval even when they dont understand it.
Thats why world is corrupted so much, because business buying way law is created and most often its bad for people.

The Sceptical Chymist

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Top Crypto Casino

Quote from: Baofeng on August 05, 2020, 06:06:35 PM

Will this encourage more investors to get on-board if the IRS will somewhat heed this call?

That's a damn interesting letter, and I thank you for posting it here OP.

I've been interested in PoS coins for a while now, though I don't own any at the moment, and I'm kind of shocked that congressmen are actually aware of their existence, much less concerned with the fair taxing of rewards from them. It's also interesting to me that they proposed that taxation occur only upon the sale of the staking rewards. I don't have any idea how PoS coin rewards are taxed now, but I'd assume they'd be considered to be income if they're taxed at all. Maybe someone with some knowledge could clarify that.

Although it's an interesting letter, it remains to be seen whether anything comes of it. A lot of these suggestions don't lead anywhere, and I'm not sure how much influence these four congressmen have. I'll have to keep my eyes on it.

Baofeng

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The four congressman are:

Here is the complete letter they sent to Commissioner Rettig.

https://schweikert.house.gov/sites/schweikert.house.gov/files/Final%20Proof%20of%20Stake%20IRS%20Letter%207.29.20.pdf

Will this encourage more investors to get on-board if the IRS will somewhat heed this call?

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