The president of United States, Joe Biden voiced his opposition to a debt limit deal with Republican leaders that would supposedly benefit cryptocurrency traders. During a press conference at the Summit of the Group of Seven (G7), they indicate that Biden described the conditions proposed by the Republicans as “unacceptable”.
“I will not accept a deal that protects estate tax fraudsters and cryptocurrency traders while putting food assistance for nearly a million Americans at risk.”
Alleged Protections for Crypto Traders Refer to Harvesting Tax Losses. According to the Washington Post, there is an ongoing discussion between the White House and Republican leaders about blocking the mechanism for cryptocurrency transactions.
Cryptocurrency tax loss harvesting is a strategy that investors use to reduce their overall tax liability. Consists in Selling a cryptocurrency at a loss to offset any capital gains from cryptocurrency. To claim a loss, lThe assets must be sold, and the proceeds must be used to purchase a similar asset within 30 days before or after the sale.. The mechanism also is available for stocks and other assets.
Along with the end of the tax loss harvest for cryptocurrencies, the White House presented Republicans with a similar proposal that prohibits investors from deferring taxes on real estate swaps. Both changes would add about $40 billion in tax revenue for the US government.
Republicans have rejected the proposals.a source told the Post. House Speaker Kevin McCarthy claims that rising US debt is a “spending issue, not revenue issue”and quote the Biden administration overspending during the pandemic. Meanwhile, the White House blames the debt problem on tax cuts from previous administrations, claiming that revenues have been significantly affected by the tax cuts.
Republicans want to close the deficit with $4.8 trillion in spending cuts, which would directly affect the budgets of federal agencies. If Congress fails to raise the debt limit, the United States could default on June 1. Biden will reportedly speak to McCarthy on the phone during his flight from Hiroshima to Washington DC
In force since 1917, The debt ceiling or limit is a ceiling set by Congress on the amount of money the federal government can borrow to pay bills..
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