Biden Calls for End to Tax Loopholes That Favor Wealthy Crypto Investors

US President Joe Biden has called for an end to tax loopholes that favor big crypto investors. He referred to big crypto investors as “wealthy crypto investors.”

In an infographic tweet shared late Tuesday by Biden, it reads, “We think Congress should cut tax loopholes that help wealthy crypto investors.”

As per the tweet, these loopholes have cost a mouthful of money — $18 billion in revenue. In this tweet, Biden called MAGA House Republicans his opponents who have a different perspective than him.

Biden’s government thinks about cutting tax loopholes that help wealthy crypto investors, but MAGA House Republicans think they should cut food safety inspections instead.

Biden’s latest post has elicited several reactions on Twitter. Some of them are in his support, and many seem to be against him.

One of the followers, terminatus.eth, said that for every bad democratic policy, there are several bad republican policies. The user argues that democratic and republican leaders are similar in making bad policies.

Similarly, one of the followers, Shibetoshi Nakamoto, has raised a question about what wealthy crypto investors Biden is talking about. The user claimed, most US crypto investors are not rich, but they are using crypto to make ends meet.

Adam Cochran, a managing partner at Cinneamhain Ventures, said that crypto is actually at a disadvantage compared to other assets when it comes to how gains are taxed during transfers between different types of assets. He also challenged anyone to provide evidence of a supposed loophole in this regard.

“crypto actually suffers compared to other assets on how gains are taxed on transfer between asset types. challenge absolutely anyone to cite this supposed loophole.”

President Biden has proposed a new tax plan in the fiscal year 2024 budget. Biden’s plan has not gotten support from Republican opposition in the U.S. House. This new taxation plan is said to be targeted at wash trading.

The government wants to apply the same rules to crypto assets that already exist for stocks and bonds. This could bring in $24 billion in revenue.

Biden’s government has not been in favor of crypto and wants to create a strict regulatory framework for it. For instance, the White House’s economic advisors want to charge mining companies up to 30% more for the electricity they use, which could hurt their profits.