US President Joe Biden criticized “wealthy crypto investors” in a tweet Tuesday discussing what “MAGA House Republicans” plan to cut in the federal budget.
“We think Congress should dismantle tax loopholes that help wealthy crypto investors ($18 billion),” President Biden said. “MAGA Republicans think Congress should cut food safety inspections ($15 billion)”
MAGA stands for Make American Great Again, a slogan of former President Donald Trump.
“We don’t have to guess what MAGA House Republicans estimate. You tell us,” he said.
Crypto in Biden’s budget
This comes after President Biden proposed what he calls the Digital Asset Mining Excise Tax, or DAME, in his fiscal 2024 budget.
Under this proposal, companies would face a tax of 30 percent of the cost of the electricity consumed.
The tax would be introduced next year and phased in over three years at a rate of 10 percent per year, then reaching the target rate of 30 percent by the end of 2026, the previous said Cryptonews Coverage.
The White House recently pushed for this tax in a blog post published last week, raising concerns about how much electricity is used in crypto mining.
The electricity used in crypto mining was similar to that used to power all home computers or residential lighting in the country, the White House Council of Economic Advisers said.
President Biden also suggested in his budget Changing the tax treatment of “wash sales” of digital assets.
The budget proposes the application of “wash sale rules” to digital assets.
These rules prevent taxpayers from taking a tax deduction for a loss on a wash sale — when an investor buys a security 30 days before or 30 days after selling an identical or similar security Investopedia.
