Biden flags ‘tax loopholes for wealthy crypto investors’.

The president of the United States, Joe Biden, said that Republicans in the House who support Donald Trump do not want to close ‘tax loopholes that help wealthy crypto investors’.

We don’t have to guess what MAGA House Republicans value. They’re telling us. pic.twitter.com/BM6JGMEFeq

— President Biden (@POTUS) May 9, 2023

“We don’t have to guess what matters to the MAGA Republicans. They’re telling us,” Biden wrote.

The president’s message on Twitter came in support of his 2024 budget plan, which has yet to win approval due to a large number of opponents in the House of Representatives.

He noted that Republicans prefer to cut ‘programmes that are crucial for seniors, the middle class and working families’, in particular the proposal to tighten food-safety checks.

“A crypto investor, unlike an equity or bond investor, can sell digital assets at a loss to reduce their tax burden, and then buy back the same cryptocurrency the next day,” the Biden budget plan says.

He says it is necessary to amend the tax code so that it applies to cryptocurrencies just as it does to traditional assets. According to the president, the amendments will help return $24 billion to the federal budget.

The plan also includes a 30% tax on the electricity used to mine cryptocurrencies.

In March 2023, the Biden administration unveiled a report, which stated that digital assets do not meet their claimed use cases. Economists likewise highlighted the risks of digital assets for investors and financial stability more broadly.