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Senators are considering cryptocurrency taxes as a way to fund an infrastructure plan

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  • Senators from both parties unveiled a bipartisan infrastructure agreement on Wednesday
  • Senate Majority Leader Chuck Schumer plans to take a test vote on the bill on Wednesday night, and he believes it will pass
  • The infrastructure initiative, as well as a $3.5 trillion plan to extend social services, are being pushed by Democrats

The White House announced Wednesday that a months-in-the-making infrastructure plan in the United States Senate will be largely funded by increased bitcoin tax enforcement. According to the United States Senate’s bipartisan infrastructure proposal, which would impose harsher controls on digital asset investors, cryptocurrency transactions would raise an additional $28 billion in taxes.

Both parties support stricter crypto restrictions

Senators from both parties announced a bipartisan infrastructure accord with a goal of investing $550 billion in roads, broadband, and utilities, down from $579 billion in the previous proposal presented in June. According to the White House, the law will be funded by a combination of targeted business user fees and increased tax enforcement on cryptocurrencies.

According to NBC News, the Democrat in charge of her party’s infrastructure push, Sen. Kyrsten Sinema of Arizona, said they have reached an agreement with the majority of the bill’s text finalized. She stated that she spoke with Vice President Joe Biden, who is enthusiastic about moving this ahead. Later, Biden informed reporters that he is confident in the arrangement.

Schumer, D-N.Y., has stated that he hopes to schedule a procedural vote on the measure on Wednesday night. For the bill to pass, it will need 60 votes, or 10 Republicans if all 50 members of the Democratic caucus support it. Schumer stated that he believes they have the votes to do so. After meeting with Senate Minority Leader Mitch McConnell, R-Ky, four other Republicans — Senators Bill Cassidy of Louisiana, Susan Collins of Maine, Lisa Murkowski of Alaska, and Mitt Romney of Utah — joined Portman in announcing the agreement.

Later Wednesday, McConnell handed the bill a major boost by announcing that he would vote to move forward with it. According to Senate Minority Whip John Thune, at least ten Republicans are expected to vote to advance the plan.

Other Republican senators who backed the concept

Last month, six additional Republican senators, including North Carolina’s Richard Burr, South Carolina’s Lindsey Graham, Kansas’ Jerry Moran, South Dakota’s Mike Rounds, North Carolina’s Thom Tillis, and Indiana’s Todd Young, backed the concept. They, along with a few other Republican senators, will have a say in whether the bill moves forward in the Senate.

Following days of deadlock on topics such as transit finance, an agreement on infrastructure legislation was reached. The squabbling threatened to sabotage a key component of Biden’s program. Senators are making strong progress on both the bipartisan package and the Democratic plan to invest $3.5 trillion in social programs, according to Schumer. Both programs, according to Democrats, will strengthen the economy and create a stronger safety net for families.

The plan called for $550 billion in new funding for transportation, broadband, and utilities, down from $579 billion in the initial framework announced last month. The bill will be funded by repurposing unspent coronavirus treatment funds, as well as targeted business user fees, stronger tax enforcement when it comes to cryptocurrencies, and economic growth generated by the investments, according to the White House. It was unknown how those instruments would function or how much money they would generate.

Last week, Schumer failed to launch a debate on the bipartisan idea. As they worked to iron out differences, Republican senators working on the measure with Democrats and the White House voted against moving it forward. Before the Senate leaves Washington for its recess next month, the Democratic leader hopes to pass the bipartisan proposal and a budget resolution that will kick-start his party’s legislation. Democrats may pass their bill without a Republican vote by using budget reconciliation.

Number of votes required to pass Bipartisan Idea

To pass, the bipartisan idea would need 60 votes. If all Democrats sign off, at least 10 Republicans must support it, or one extra GOP senator must vote for it for every Democratic defection. The vote to move the package forward would be the start of a long road for Democratic congressional leaders. They must keep various factions of their party on board with both initiatives while negotiating Republican attempts to derail them. Speaker of the House Nancy Pelosi, D-Calif., has stated that she will not take up either bill until the Senate has passed both.

The Democrats’ $3.5 trillion plan is anticipated to spend money on child care, education, health care, and climate change mitigation. Even if Congress passes both bills, Buttigieg said Wednesday that the White House views the infrastructure and reconciliation programs as independent. They’re separate bills, but the president backs both and expects to sign them, he added.

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