Biden Accuses Republicans of Protecting Rich Crypto Investors

Jimmy Aki
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President of the United States, Joe Biden, has called for the closure of “tax loopholes” that allegedly benefit wealthy cryptocurrency investors.

He suggested that Republican lawmakers were defending affluent cryptocurrency investors by emphasizing food safety over closing tax loopholes for cryptocurrency investors.

The US President Targets Republicans

In a tweet on May 9, U.S. President Joe Biden stated that Republican politicians support tax loopholes that benefit wealthy crypto investors.

The tweet supported his proposed budget for the fiscal year 2024, which has so far not made much progress due to unified Republican opposition in the U.S. House.

The budget aims to eliminate wasteful spending on Big Pharma, Big Oil, and other special interests while cracking down on systemic fraud and identity theft and making programs more efficient and cost-effective.

These tax reforms are intended to ensure that large corporations pay their fair share of taxes, resulting in hundreds of billions of dollars in savings for taxpayers.

However, Republicans in Congress have previously opposed this approach to debt reduction.

Biden argued that cutting the budget is a universal priority. However, he implied that Republicans prefer to reduce programs critical to seniors, the middle-class, and working families over revising tax laws.

This they do to ensure that the wealthy and big corporations pay their fair share.

According to the President, closing these loopholes would result in billions of dollars in savings, while amending the tax laws to apply to crypto assets just like they apply to stocks and other securities will help recover $24 billion.

However, Biden did not elaborate on the loopholes or the improvements that would result in the possible savings he mentioned.

Crypto Community Slams Tweet

The tweet has drawn criticism from some well-known members of the crypto community, who are asking what the loopholes are.

According to market analyst FatMan, Biden’s facts are incorrect. He noted that total corporate earnings in the U.S. were 11.8 trillion USD in 2022, while the overall crypto market dropped by $1.4 trillion during the same time frame.

David Lawant, the head of research at FalconX, emphasized that only 17% of American adults have bought cryptocurrency.

Billy Markus, the co-creator of Dogecoin, also responded, stating that he provided the government with more money than he did in cryptocurrency while taking all the risk.

He questioned whether there were any loopholes and pointed out that most American cryptocurrency users aren’t wealthy but still try to utilize it to survive.

While people were asking what the loopholes are, Redditors speculated that the president’s tweets regarding crypto tax loopholes might be related to the IRS’s (IRS) wash sale rule.

This rule forbids selling stocks at a loss and buying them again within 30 days. However, it is not yet being applied to cryptocurrency.

The United States is currently criticized around the world for its ambiguous regulatory policies on cryptocurrencies.

This has prompted cryptocurrency businesses to expand internationally, hire lawyers, and collapse deals—possibly hindering the market.

Earlier this month, Biden gained notoriety for putting out the Digital Asset Mining Energy (DAME) tax plan targeted exclusively at cryptocurrency miners. The plan calls for a 30% levy on cryptocurrency mining to offset its environmental impact.

The proposed excise tax on digital asset miners would start in 2024.

For this, digital asset mining companies would be obligated to pay a tax on their associated electrical expenses to the Internal Revenue Service (IRS). The tax will start at 10% and increase each year until it reaches 30%.

The day after the White House report was made public, Democratic presidential candidate Robert F. Kennedy Jr. seized on the administration’s reasoning and associated himself more closely as a supporter of digital assets after denouncing a purported “war on crypto” the day before.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.