US President Joe Biden set off an unexpected contradiction on Tuesday, saying “MAGA House Republicans” “support tax loopholes that help wealthy crypto investors,” and oppose food safety inspections.
Biden’s Twitter post was in support of his proposed fiscal year 2024 budget, which has so far failed to meaningfully move the united Republican opposition in the US House.
Biden notes that slashing the budget is a universal priority — but that Republicans would prefer to cut “critical programs for seniors and the middle class and working families” rather than change the tax code “to ensure that the wealthy And the big corporations pay their fair share.”
The prominent reference to crypto sparked a flurry of reactions on crypto Twitter. One simple thing: what are the loopholes in the tax?
“I gave you guys more money than I made this stuff, taking all the risk,” answered Dogecoin co-creator Billy Marcus. “You also realize that most US crypto users are not rich but are using crypto cuz they don’t feel like they have enough to live on – because of you guys?”
Biden’s budget plan provides slightly more detail than his tweet.
A White House fact sheet explains, “Right now, crypto investors are not subject to the same rules of the road that investors in stocks or other securities have to follow.” “For example, a crypto investor – unlike an investor in a stock or bond – could sell a cryptocurrency at a loss, take a tax loss sufficient to reduce his tax burden, and then sell the same cryptocurrency the next day. Can buy back.
The president says updating the tax code “to apply to crypto assets like they apply to stocks and other securities” would recover $24 billion.
But Peter Conradi, community moderator for digital artist Beeple and community manager for Web3 maker platform Async Art, asked Biden to back off.
“Take off your feet [brakes] a technological and financial revolution that other countries are tapping into,” he answered on Twitter. “Most of us are not wealthy, but many of us are simply trying to innovate and create new markets and opportunities for our citizens.”
The US is being pilloried around the world for a lack of clear regulatory guidance on crypto, causing uncertainty for crypto firms to expand overseas, solicit and scuttle deals – and potentially disrupt the market. So far, the trend has been towards downsizing the industry.
This year, following criticism over a lack of oversight at failed crypto exchange FTX, Security and Exchange Commission Chairman Gary Gensler has stepped up his campaign against crypto companies that the SEC says are selling unregistered securities: Jan. Genesis in February, Do Kwon’s Terraform Labs in February, Justin Sun and his companies in March, and Bittrex in April.
However, there are voices of dissent within his own agency.
Meanwhile, the White House is making a case for a 30% excise tax on energy used by crypto miners, and Republican lawmakers are set to oppose a US central bank digital currency (CBDC) alongside Florida Gov. Ron DeSantis called this one. A possible place for Democrats to implement “walk politics”.
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