US Tax Laws on Cryptos to Stimulate Economic Development

US Tax Laws on Cryptos to Stimulate Economic Development

In the recent years, the federal government and states of the US have been working meticulously to grasp the concept of cryptocurrencies and apply them to conventional finance laws like taxes. Indistinguishably, the US tax laws are designed for attempts of achieving healthy economic results.

As per the sources of Internal Revenue Service (IRS), majority of the cryptocurrency aspirants in the US, know that the digital currencies are categorized in the class of property for Federal tax purposes. Principally, this means that current property transaction laws concern to the transactions using virtual currencies.

Tax and GDP are always inter-related, under expenditure approach, higher tax collections would instinctively constitute to a higher GDP number (a higher GDP is an indicator that there has been an augmented overall development in the country and hence a higher per capita income).

Tax-GDP ratio is the effective approaches used to evaluate a country’s economic development and is ascertained by dividing the tax revenue collected by the Government from the GDP of that country.

Universally the prime objective of overall tax legislation is to raise funds for the government treasury, which in turn to utilize these mobilized funds to achieve some ultimate economic objective. In that context of digital currencies, the trajectory offers revenue raising opportunity for the government.