Neal Opening Statement at Committee Hearing on Digital Asset Taxation
(As prepared for delivery)
Thank you, Chairman, and thanks to the witnesses for being here to testify today.
We’re here to address the taxation of digital assets, which has taken quite a bit of the Committee’s time this year. One might even say, in light of the struggles of working families, too much of the Committee’s time. With families struggling to make ends meet, the price of gas, groceries, energy, housing and health care soaring, our time and efforts should be poured in to solving these problems.
Notwithstanding that observation, I am glad to see that the Majority, in holding this legislative hearing, is wading into a novel topic with a degree of caution. If there is one thing I can say that is bipartisan for sure, is the need for more education on the topic of digital assets—on both sides of the aisle.
We have before us six bills, and a discussion draft, and my initial observation is that there were some aspects of these bills that were quite sensible, providing clear rules of the road for taxpayers looking to simply comply with the law. Other provisions sought the commonsense goal of alleviating burdensome paperwork requirements, especially in situations where it is highly unlikely there would be any tax associated with the transactions.
And indeed, there are provisions that would close loopholes that are specific to the digital asset industry; another goal that we share.
At the same time, it appears there are some provisions that deviate substantially from general tax principles, providing a distinct advantage to digital assets above and beyond other investments. We should be very careful about putting a thumb on the scale here—as we all know, it’s much easier to put something into the tax code than it is to take it out.
Mr. Chairman, you’ve stated that your end goal here is to have strong bi-partisan legislation, and I’m sympathetic with that goal. There’s healthy skepticism on both sides, as evidenced by none of today’s bills having bipartisan support, but I want to commend Representative Steven Horsford who has been a leader on our side and has been extremely engaged in negotiations.
This hearing is a good step, but my suggestion is that we listen carefully to the witnesses, and to the various concerns those on our side of the dais are expressing regarding these problematic provisions. Then engage in true negotiations. That’s the only way to develop a truly bipartisan product.
And with that I yield back.
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