- President Joe Biden has said he is not willing to ink a debt ceiling agreement that would benefit crypto traders.
- The proposed terms by Republican leaders are “unacceptable” as it would protect wealth tax cheats and crypto traders, while putting food assistance at risk for nearly 1 million Americans.
- Republicans have rejected the proposal to close tax-loss harvesting for crypto or real estate.
US President Joe Biden has said he is not willing to ink a debt ceiling agreement that would benefit crypto traders. During the final day of G7 talks in Japan, Biden addressed the budget negotiations, claiming that the proposed terms by Republican leaders are “unacceptable.” The alleged protections for crypto traders refer to tax-loss harvesting, a tax planning strategy that involves selling cryptocurrencies that have experienced a decline in value in order to offset capital gains taxes on other investments. Essentially, the investor is taking advantage of the downward trend in the crypto market to strategically sell assets at a loss, reducing the amount of taxes they owe. According to a recent report by the Washington Post, there’s an ongoing discussion between the White House and Republican leaders about blocking the mechanism for cryptocurrency transactions.
Republicans Claim Debt Rise is a Spending Problem House Speaker Kevin McCarthy said the US debt rise is a “spending problem, not a revenue problem,” citing Biden administration’s excessive spending during the pandemic. Republicans are proposing to address the deficit by implementing $4.8 trillion in spending cuts which would impact federal agency budgets. The US is facing potential default since President Joe Biden and congressional Republicans remain at odds over raising $31.4 trillion borrowing limit Treasury Secretary Janet Yellen warned earlier this month.