Tax Policy In Fiscal Year 2021’s Exit

House Representatives Bill 3684

Digital Assets

The Bill suggests to treat Digital Assets as a specified security as in Section 6045(g)(3)(B); a digital representation of value recorded on cryptographically secured distributed ledger or similar technology specified by the Secretary. Respective to any transfer; Brokers who manage an account need to make a return during any calendar year and follow reporting requirements for digital assets.

Taxes Need Taxes to Drive Further

Section 13002 proposes a a pilot program to demonstrate a National Motor Vehicle Per-Mile User Fee. The data generated from the program will observe between volunteer participants; a tax applied to road users operating motor vehicles, based on miles traveled by an individual user. The purpose of such a tax would hope to restore long-term solvency of the Highway Trust Fund established by Internal Revenue Code of 1986, and maintain the surface transportation system. To test the design, acceptance, implementation and sustainability; to address the necessity, and provide recommendations for adoptions, and implementations. Tools can include On-Board Diagnostic 3rd party devices, smart phone applications, automakers telemetric data, car insurance company or fueling station obtained motor vehicle data. The secretary will allow the participants to use one of the chosen tools, and the secretary will choose which amount may vary between vehicle types, weight classes to reflect estimated social impacts, as well as assurance that volunteer participants represent geographically diverse regions.

Build Back Better

Below is a list of the names of the sections of the bill.

  • Application of Backup Withholding With Respect to Third Party Network Transactions (where transactions settled by a 3rd party network where the transactions in aggregate $600 and over will cause a return prepared for the payee).
  • Limitation on Deduction For Qualified Conservation Contributions Made By Pass-Through Entities.
  • Modifications of Procedural Requirements Relating to Assessment of Penalties.
  • Modifications to Limitation on Deduction of Excessive Employee Remuneration.
  • Prohibited Transactions Relating to Holding Domestic International Sales Corporation or Foreign Sales Corporation in Individual Retirement Account.
  • Increase in Tax on Certain Tobacco Products and Imposition of Tax on Nicotine.
  • Access to Self-Employment Income Information For Paid Leave Administration.
  • Temporary Rule To Allow Certain S Corporations to Reorganize as Partnerships Without Tax.
  • Treatment of Certain Qualified Sound Recording Productions.
  • Treatment of Certain Qualified Productions.
  • Payment To Certain Individuals Who Dye Fuel. Enhancement of Work Opportunity Credit During Covid-19 Recovery Period.
  • Allowance of Deductions for Certain Expenses of The Trade or Business of Being an Employee.
  • Cover Over Of Certain Distilled Spirits Taxes.
  • Research and Experimental Expenditures.
  • Payroll Credit For Compensation of Local News Journalists.
  • Treatment of Financial Guaranty Insurance Companies as Qualifying Insurance Corporations Under Passive Foreign Investment Company Rules.
  • Credit for Qualified Access Technology For the Blind.
  • Modification of REIT Constructive Ownership Rules.

What to Consider?

The personal income tax was once temporary, and it seems precedent will assert that the income tax is permanent. The Per Mile Usage Fee pilot program shows a desire for some expenses to be specified with their own tax, despite the normal collection from general Federal Taxes. Will all taxes be specified with general taxes decreased as separate taxes cover specific expenses? Or will additional specific taxes be used to increase taxes for certain citizens as the general tax would remain unchanged? If you have been paying attention to the talk about Cryptocurrency, you would have heard that Cryptocurrency is considered to be an asset, so it’s treatment as a security is not surprising. The one caveat, so the regulations start, where will they go and end? The Tax Gap does exist, although the Panama Paper’s reveal much of it will be offshores or out of the country, a temporary information swell of all the transactions, could help Tax Compliance Enforcement better understand the flow of money and practices of potential illegal tax activity.

Department of Treasury’s Fiscal Year 2022 Revenue Proposals

The Department of Treasury has released it’s revenue proposals for fiscal year 2022. The Following list is some of the important goals of the department.

  • Corporate Taxation Reform include many measures, limit excess business loss of noncorporate taxpayers.
  • Housing and Infrastructure Support
  • Clean Energy Priority
  • High-Income Taxpayers Taxation
  • Close Loopholes
  • Improve Compliance
  • Improve Tax Administration

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