The US is not prepared to lose incoming cash or take on any financial risk, particularly at this time when the country’s economy has suffered a bump caused by inflation. Given the situation, US President Joe Biden is not contemplating lowering the country’s taxes on cryptocurrency investors and holders. After the Republicans recently made a proposal to the US government offering some concessions on crypto taxes, Biden’s position on lowering them came to light. However, the US President did not find the Republicans’ plan to be an economically sound choice.
In the US, short-term capital gains and cryptocurrency income are subject to taxes ranging from 10% to 37%, while long-term capital gains are subject to taxes ranging from 0% to 20%.
Biden has categorically denied even considering the idea that the US should review the tax it has imposed on cryptocurrency-related activity. The US President was addressing at the G7 meeting that was taking place in Hiroshima, Japan.
President Biden was cited as stating, “I’m not going to agree to a deal that protects wealth tax cheats and crypto traders while putting food assistance at risk for nearly 1 million Americans,” in a CryptoSlate post on May 22.
The Republican proposal is, in the words of the US President, “quite frankly, unacceptable.”
The US is currently struggling from extreme financial strain. The sum of the US’s public and intragovernmental debts is projected to be $31.5 trillion (approximately Rs. 26,10,46,800 crore).
If the country’s debt ceiling is not lifted, the US would default on its obligations by June 1 despite having hiked interest rates many times over the previous five months.
Therefore, Biden does not now want to reduce cryptocurrency taxes in order to prevent any capital from entering the US Treasury.
Investors and the general public were alarmed last month when three conventional banks in the US that supported cryptocurrencies crashed inside a single week.
The current financial crisis in the US was attributed by the Federal Reserve Bank of Chicago (FRBC) in a recent study to the failure of cryptocurrency initiatives like Terra and FTX last year.