Joe Biden, United States President, has opposed a debt ceiling agreement in relation with Republican leaders that can help crypto traders, as stated by Cointelegraph.
“I’m not going to agree to a deal that protects wealthy tax cheats and crypto traders while putting food assistance at risk for nearly a hundred — excuse me — nearly 1 million Americans,” Biden stated.
According to Cointelegraph, Biden gave this viewpoint at Group of Seven (G7) summit held at Hiroshima, Japan, on May 21, 2023. It’s believed that talks are ongoing between White House and Republican leaders around obstruction of a cryptocurrency transaction-based mechanism. From what it’s understood, crypto tax-loss harvesting is a method for investors to ensure reduction of overall tax liabilities. Reportedly, the method is permissible for stocks and other assets as well.
Based on Cointelegraph’s information, White House informed Republicans about a similar proposal that would disallow investors from deferring taxes on real estate swaps. It’s been estimated that both the alterations would make a $40 billion addition worth tax revenue for US government. Sources suggest that Republicans have rejected the proposals. Kevin McCarthy, House Speaker, has claimed that the US debt rise counts as a “spending problem, not a revenue problem.”
Moreover, Cointelegraph noted that Republicans intend to cut down the deficit with $4.8 trillion worth spending cuts, which would impact federal agencies’ budgets.
(With insights from Cointelegraph)