Joe Biden seeks to end End crypto “Tax Loopholes”

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Key takeaways:

  •  United States President  Joe Biden demanded an end to “ambiguous” crypto tax regulations.
  • Biden shared an infographic with the following message on Twitter: “We think Congress should cut tax loopholes that help wealthy crypto investors.”

President Joe Biden criticized Republicans for their budget priorities in a tweet, highlighting the need to eliminate “tax loopholes benefiting wealthy crypto investors.” He argued that doing so would generate $18 billion for the government. 

Biden’s tweet aimed to rally support for his proposed fiscal year 2024 budget, which has faced significant opposition from Republicans in the U.S. House. 

The proposed tax would be introduced in the following year and gradually implemented over three years, starting at a rate of 10 percent annually and eventually reaching a target rate of 30 percent by the end of 2026.

President Biden claimed that eliminating unspecified tax loopholes would result in approximately $18 billion in savings, but he did not provide specific details about which loopholes and reforms would lead to this amount. 

He contrasted this with the “MAGA Republicans” who want for $15 billion in cuts to food safety checks. A 30% tax on cryptocurrency mining was also recently proposed by the Biden administration, which would largely target mining firms rather than individual investors.

While stressing the necessity of cutting the budget, Biden chastised Republicans for giving priority to cuts to important programmes for elderly, middle-class families, and working families. He emphasised the necessity of changing tax laws to make sure that wealthy people and big businesses pay their fair share.

The crypto community is clearly not pleased with the current positions of the U.S. government, perceiving the proposed changes as unjust. As expected, President Biden’s tweet sparked a contentious debate within the crypto social media sphere.

 Furthermore, Biden portrayed those who oppose his plans as supporters of the Republican party, stating that their priorities are evident: “We don’t need to speculate on what MAGA House Republicans value. They are expressing it.”

In his infographic, Biden’s statement implied that Republicans are advocating for a $15 billion reduction in food safety inspections, possibly referring to proposals put forth around April 26.

Many crypto enthusiasts, including @CryptoWendyO, expressed their displeasure, claiming that with Biden’s latest “blatant lie,” he has successfully converted every democratic Crypto enthusiast into a Republican and lost their support. 

FatMan, an anonymous crypto expert, countered Biden’s claims by stating that the president’s “facts are incorrect.” According to FatMan, the crypto market is projected to decrease by $1.4 trillion in 2022, whereas corporate profits in the United States are estimated to reach $11.8 trillion. FatMan argued that the crypto market is comparatively smaller and has experienced substantial declines.

 Additionally, FatMan hinted that the true loopholes lie elsewhere, implying that there are other areas where reform is needed.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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