President Biden Sour On Debt Deal Benefitting “Wealthy Tax Cheats And Crypto Traders”

US President Joe Biden took a firm stance against cryptocurrency traders, particularly those dealing with Bitcoin (BTC), during the recent G7 summit. In a strong statement, the president emphasized his refusal to support any agreement that shields “wealthy tax evaders and cryptocurrency trader”, while underscoring the importance of a bipartisan solution that involves both Republicans and Democrats.

This declaration comes in response to claims made by Republican lawmakers in Congress, who have advocated for lower taxes and reductions in public spending. By doing so, the president reasserted his commitment to eliminating subsidies for large corporations, millionaires, and traders.

The protections provided to investors in the crypto and stock markets primarily center around a strategy known as tax loss harvesting. This approach involves selling an asset at a loss and immediately repurchasing it, ensuring that it remains in the investor’s portfolio. Although this process results in reduced profits upon repurchase, it allows for the offsetting of capital gains and a consequent reduction in tax obligations.

Just ten days ago, Biden, representing the Democrats, called for Congress to “eliminate tax loopholes that enable affluent cryptocurrency traders” to evade an estimated $18 billion in taxes. Simultaneously, he highlighted that Republicans are pushing for a $15 billion reduction in funding for food safety inspections. Examples of such policies have resulted in long-term national debt, prompting Biden’s focus on bolstering tax revenue.

The ongoing negotiations between the two opposing sides of the American political spectrum regarding the federal budget and the debt ceiling have yet to yield an agreement. This lack of consensus raises concerns about the country’s financial stability, as the national debt approaches a staggering $32 trillion. If a new budget deal is not reached, the United States could face a cash shortage as early as next month.

Biden Dour On Bitcoin… Again

As previously mentioned, President Biden criticized “wealthy crypto investors” and unveiled plans to close tax loopholes in an effort to generate additional revenue. This move sparked hope among Americans and the crypto industry that a more favorable administration and president will be elected in the general election scheduled for November 2024.

Until such time, it is likely that the crackdown on cryptocurrencies will persist, accompanied by a continued exodus of talent and innovation to jurisdictions overseas that are more receptive to the industry.

Furthermore, the Biden administration has proposed implementing a 30% energy tax on crypto miners, which could further intensify the ongoing departure of these miners. This is serving to drive out this important demographic from the industry, to the benefit of other nations.

TDR will have additional coverage as events warrant.

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