Biden Advocates for an End to Tax Loopholes That Benefit ‘Wealthy Crypto Investors’

US President Joe Biden advocated ending tax loopholes that benefited what he described as “wealthy crypto investors.”

On a Twitter post On Tuesday, Biden shared an infographic that read: “We think Congress should cut tax loopholes that help wealthy crypto investors.”

According to the post, these loopholes cost the government about $18 billion in revenue. In his tweet, the president mentioned “MAGA House Republicans” as opponents of his tax plans.

Biden rebuked Republicans

Biden stated that while he is calling for these changes, MAGA House Republicans support tax loopholes and, conversely, promote cutting food safety inspections.

President Biden’s post sparked a lot of reaction from the crypto community on Twitter, with many wondering what tax loopholes he was referring to.

Adam Cochran, a managing partner at digital asset-focused Cinneamhain Ventures, responded to the post, saying that “crypto really suffers compared to other assets in terms of how profits are taxed when moving between asset type.” He added that he would “challenge anyone to discuss this supposed loophole.”

Biden Proposes Crypto Tax Reforms

The latest tax plan is part of Biden’s recently proposed fiscal year 2024 budget, which did not receive support from the Republican opposition in the US House. The budget proposes a change in crypto taxation rules to target wash trading.

The administration noted that crypto assets were initially not subject to the same wash trade rules that apply to stocks and bonds. However, implementing these changes to apply to this emerging asset class could raise $24 billion in revenue.

The Biden administration does not support crypto and continues to introduce new harsh tax rules for the sector. For example, the White House’s Council of Economic Advisers (CEA) is calling for a punitive tax of up to 30% on the electricity costs of US mining companies – a move that could negatively affect the profitability of such operators .