US President Joe Biden set out an unexpected dichotomy on Tuesday, saying that “MAGA House Republicans” support “tax loopholes that help wealthy crypto investors,” and oppose in food safety inspections.
Biden’s post on Twitter supports his proposed fiscal year 2024 budget, which has so far failed to make meaningful progress due to united Republican opposition in the US House.
Biden explained that budget cuts are a universal priority — but Republicans would rather cut “programs critical to seniors and middle-class and working families” than reform the tax code. “to make sure the rich and big corporations pay their fair share.”
The famous mention of crypto sparked outrage on Crypto Twitter responses. A common refrain: What tax loopholes?
“I give you all more money than I get these things, while taking all the risk,” ANSWERED Dogecoin co-creator Billy Markus. “You also realize that most American crypto users are not rich, but use crypto because they don’t feel they have enough to make ends meet—because of you?”
Biden’s budget plan provides less detail than his tweet.
“Currently, crypto investors are not subject to the same rules of the road that investors in stocks or other securities must follow, allowing them to report excessive losses,” explained a White House fact sheet. “For example, a crypto investor—unlike an investor in stocks or bonds—can sell a cryptocurrency at a loss, taking a large tax loss to reduce their tax burden, and then buy back the same cryptocurrency the next day.”
The President said updating the tax code “to apply to crypto assets as they apply to stocks and other securities” would recover $24 billion.
But Peter Conradi, community moderator for digital artist Beeple and community manager for Web3 creator platform Async Art, asked Biden to back off.
“Take your foot off [brakes] in a technological and financial revolution that other countries are using,” he ANSWERED on Twitter. “Most of us are not rich, but many of us are just trying to change and create new markets and opportunities for citizens.”
The US has been hammered around the world for a lack of clear crypto regulatory guidance, the uncertainty that prompts crypto companies to expand overseas, lawyers and scuttle deals—and potentially stifles the market itself. Currently, the trend is to control the industry.
This year, after criticism for the lack of oversight of the failed crypto exchange FTX, Security and Exchange Commission chair Gary Gensler stepped up his campaign against crypto companies that the SEC says are selling unregistered securities: Genesis in January, Do Kwon’s Terraform Labs in February, Justin Sun and his companies in March, and Bittrex in April.
But there were voices of dissent within his own will.
Meanwhile, the White House is building a case for a 30% excise tax on energy used by crypto miners, and Republican lawmakers are lining up to oppose a US central bank digital currency (CBDC), with Florida Gov. Ron DeSantis called it a likely place for Democrats to implement “Woke Politics.”