In a tweet, US President Joe Biden blasted affluent cryptocurrency investors, noting the discrepancy between their priorities and his own. In reaction to what he dubbed “MAGA House Republicans” who seek to eliminate funding for food safety inspections from the federal budget, Biden tweeted on Tuesday. He said that Congress should instead concentrate on addressing tax loopholes that assist affluent cryptocurrency investors, putting a $18 billion value on them.
The background of Biden’s criticism of affluent cryptocurrency investors is his proposed budget for fiscal year 2024, which contains the Digital Asset Mining Excise tax (DAME). The tax, which would be applied the next year and phased in over three years, would impose a penalty of 30% on the cost of power consumed by mining companies. Because crypto-mining uses so much power, the White House has suggested that such a tax is required. In order to prevent taxpayers from deducting losses from sales of comparable securities, Biden has also suggested implementing “wash sale rules” to digital assets.
While some may oppose these ideas, Biden’s tweet makes it obvious that he views them as part of a larger plan to put the interests of affluent investors below those of food safety inspections and other social services. This is consistent with his overarching strategy, which is to use tax policy to advance more equity and social justice, and it implies that he is willing to take a tough stance against the cryptocurrency business in order to accomplish these objectives.