BTPI Says Small Bitcoin Payment Tax Exemption Could Raise U.S. Federal Revenue

Cornell Brooks School Tech Policy Institute said a minimal exemption for Bitcoin and crypto payments under $300 could increase U.S. federal net revenue by $859 million over 10 years, with an estimated range of $172 million to $2.58 billion. According to ChainCatcher, the estimate assumes the number of digital asset payment users remains unchanged at 5.4 million. U.S. Senator Cynthia Lummis' S. 2207 bill would exempt such payments from capital gains tax, with an annual tax-free capital gains cap of $5,000. Other legislative proposals would limit the exemption to regulated stablecoins, and the discussion is still ongoing. BTPI said current capital gains taxes and small-transaction reporting requirements discourage everyday Bitcoin payments. It added that removing transaction-level tax and reporting burdens could increase Bitcoin payments and demand, while the near-term impact on Bitcoin prices and tax revenue may be limited at current adoption levels. Long-term effects would depend on factors including payment volume.