A new initiative to crack down on cryptocurrency transactions could raise tens of billions of dollars for new infrastructure spending as lawmakers advance a bipartisan plan.
Increasing reporting requirements on crypto transactions is expected to raise nearly $28 billion over the course of 10 years, according to an estimate released by The Joint Committee on Taxation on Monday.
The group projected that, collectively, the provisions in the bill would boost revenue by $51 billion over the same period.
How about $8.2 billion in revenue would be raised by ending the Employer Retention Tax Credit on 30 September.
The IRS commissioner Charles Rettig requested broader power from Congress in June to collect information on cryptocurrency transactions.
Rettig said that these transactions, by design, are often off radar screens, while noting that the most recent market cap in crypto world exceeded $2 trillion and more than 8,600 exchanges worldwide.
An original revenue-raising provision that was eliminated from consideration after losing Republican support included giving $40 billion to the IRS to beef up its enforcement and tax-collecting initiatives as a means to punish filers for not fulfilling their obligations.
In addition to enhanced enforcement on regulating cryptocurrencies and the restructuring of employee retention tax credit, the deal will be financed by redirecting unspent emergency relief funds and modification of tax treatment of contributions to the capital of a corporation.
The proposed infrastructure investments include $40 billion for bridges, $52.5 billion for roads, $66 billion for passenger and freight rail and $73 billion for electric grid modernization.
The deal is centered on a $550 billion-dollar federal investment plan.
Senate Majority Leader Chuck Schumer, D-N. Y. has said he hopes to move forward with the infrastructure bill this week.