Cornell institute says U.S. tax exemption for sub-$300 crypto payments could boost revenue

A Cornell Brooks School Institute for Technology Policy study said the U.S. federal government’s net tax revenue could rise by $859 million over the next 10 years if the country does not tax crypto payments under $300. Assuming the number of digital-asset payment users stays at the current 5.4 million, the institute estimated the revenue increase at between $172 million and $2.58 billion. The institute said the current capital gains tax and reporting requirements for small transactions are hindering everyday crypto payments. It added that removing tax and reporting burdens on small payments could increase Bitcoin payments and demand, while the near-term impact on prices and tax revenue would remain limited at the current user base.