President Biden targets "wealthy crypto investors" with proposed tax changes and loophole cuts
US President Joe Biden criticised "wealthy crypto investors" and called for Congress to cut tax loopholes benefiting them, and proposed a Digital Asset Mining Excise tax in his fiscal year 2024 budget.
US President Joe Biden criticised "wealthy crypto investors" in a tweet on Tuesday, highlighting their impact on the federal budget. He called for Congress to cut tax loopholes that benefit such investors, contrasting this with MAGA Republicans, who he said wanted Congress to cut food safety inspections.
This comes after President Biden proposed the Digital Asset Mining Excise tax in his fiscal year 2024 budget. The tax, also known as DAME, would require firms to pay a tax equal to 30% of the cost of the electricity used, phased in gradually over three years to reach the target rate by the end of 2026. The White House cited concerns over the amount of electricity used in crypto-mining, which it said was comparable to the energy required to power all of the country's home computers or residential lighting.
President Biden's budget also proposes changing the tax treatment for "wash sales" of digital assets, with rules preventing taxpayers from claiming tax deductions for losses incurred in such sales.
