U.S. President Joe Biden has called for the elimination of tax loopholes that benefit “wealthy crypto investors”, in a move that could save the government $18 billion in lost revenue. In a tweet, Biden shared an infographic stating that Congress should cut these loopholes. He claimed that “MAGA House Republicans” are in favor of the tax breaks, while at the same time seeking cuts to food safety inspections. The announcement sparked a reaction from the crypto community, who questioned what specific tax loopholes the President was referring to.
Biden Proposes Changes to Crypto Taxation
Biden’s call for changes to crypto taxation is part of his proposed fiscal year 2024 budget. It has not secured support from the opposition Republican Party in the U.S. House, but could see crypto assets targeted with wash trading taxes. The changes could generate $24 billion in revenue, underlining the administration’s intent to introduce harsher tax rules for crypto. The White House’s Council of Economic Advisers (CEA) is also exploring imposing a punitive tax of up to 30% of the electricity costs of mining firms in the U.S.
Adam Cochran, managing partner at Cinneamhain Ventures, responded to Biden’s tweet by stating that “crypto actually suffers compared to other assets on how gains are taxed on transfer between asset types.” Cochran challenged anyone to refer to the supposed loophole that Biden had mentioned.
