• President Joe Biden spoke at the G7 summit in Japan and opposed a bipartisan debt ceiling agreement due to it offering protections for crypto traders and tax cheats.
• This agreement would have enabled tax loss harvesting, which is a process where an asset is sold at a loss and repurchased again instantly, reducing taxes due as capital gains are offset.
• Biden stated he will not back a deal that supports tax cheats and crypto traders, putting food assistance for nearly a million Americans at risk.
President Biden Refuses Debt Deal
President Joe Biden recently addressed ongoing debt default talks while speaking at the final day of the G7 summit in Japan, saying he would not back a deal that supports tax cheats and crypto traders. The proposed agreement between Republican leaders would have offered protections for crypto (and stock) investors, through a process called tax loss harvesting.
What is Tax Loss Harvesting?
Tax loss harvesting is when an asset is sold at a loss and repurchased again instantly so that it doesn’t leave the investor’s portfolio, but there is diminished profit on the purchase. This will enable a reduction in taxes due as capital gains are offset.
Biden’s Opposition to Agreement
The President has made it clear that he does not agree with this agreement because it puts food assistance for nearly one million Americans at risk while benefiting wealthy tax cheats and crypto traders. He also expressed his disapproval of this agreement saying “I’m not going to agree to a deal that protects wealthy tax cheats and crypto traders while putting food assistance at risk for nearly a million Americans”.
Crypto Reactions To Comments
This comment from President Biden has sparked reactions from those within the cryptocurrency community, many of whom disagree with his stance on digital currency transactions being linked to criminal activities like money laundering or other illicit activities such as fraud or theft.
It remains unclear whether or not the proposed debt ceiling agreement will be passed despite President Biden’s opposition to it due to its offer of protections for crypto traders and other tax evaders. It appears that until further progress is made towards regulating digital currencies in order to better protect consumers from potential risks associated with them, these types of comments may continue from both sides of politics in America