While the U.S. faces default as soon as June, President Joe Biden clarified in a speech on the final day of the G7 summit in Hiroshima that he “would not agree to a deal that protects wealthy tax evaders and cryptocurrency traders.” “.
With the U.S. facing a debt default, President Joe Biden said he would not agree to a deal that “protects wealthy tax evaders and cryptocurrency traders while putting food aid at risk.”biden speaking at a press conference after the annual Group of Seven (G7) summit in Hiroshima, Japan, on Sunday.
BREAKING: President Joe Biden speaks on final day of G7 summit
“I will not agree to a deal that protects wealthy tax evaders and cryptocurrency traders while putting food assistants at risk.”https://t.co/q2ATjj9RFh
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— Sky News (@SkyNews) May 21, 2023
With no new budget deal in place, the US president is under pressure to agree to a new budget; the US could default as early as June 1, 2023.
However, Biden emphasized that when he met with all four congressional leaders ahead of the summit, they agreed that the only viable path forward was through bipartisan agreement. Biden said:
“I’ve done my job. We’ve put together a proposal for more than $1 trillion in cuts, in addition to the nearly $3 trillion in deficit reduction I’ve proposed earlier through a combination of spending cuts and revenue increases.”
Adding, “It is time for the other side to change their extreme position, because most of what they have already suggested is, frankly, unacceptable.”
Biden won’t budge on tax breaks, pharma and crypto traders
In addition to rejecting a deal that protects what he calls “tax avoidance for the rich,” Biden listed a host of other areas where he disagrees with a deal.
“For example, I will not agree to a deal that protects $30 billion in tax breaks for the oil industry, which made $200 billion last year … while putting at risk the health care of 21 million Americans through Medicaid.”
The president would also reject a deal to protect the pharmaceutical industry at the expense of schoolteachers, aides and law enforcement:
“I will not agree to a deal that protects $200 billion in overpayments by the pharmaceutical industry, and refuses to count that while cutting over 100,000 teacher and – and assistant jobs, and 30,000 law enforcement jobs – across the United States. “
Biden made his stance against tax breaks and cryptocurrency traders clear, emphasizing:
I will not agree to a deal that protects wealthy tax evaders and cryptocurrency traders while putting at risk food aid for nearly 100 – sorry – nearly 1 million Americans.
Biden: America will not default
Bitcoin.com reported that Biden expressed concern that the United States is at risk of defaulting on its debt. The possibility of a U.S. default comes after U.S. Treasury Secretary Janet Yellen said the Treasury Department could run out of money to pay all of the government’s bills as soon as June 1 if Congress “does not raise or suspend the debt ceiling until then.” Sex became a common concern.
However, President Biden is confident the U.S. will not default, and all four congressional leaders reportedly agree with him. He reiterated:
America has never defaulted on… our debt – and never will.
Biden’s proposed 2024 budget includes amendments to tax treatment “Wash sale” of digital assets A 30% tax is imposed on the energy used for cryptocurrency mining activities.
Is the United States’ attitude towards the encryption industry shooting itself in the foot? Best efforts to “kill cryptocurrencies with high taxes” certainly won’t help. The regulatory approach of the SEC and other law enforcement agencies makes it clear that the US wants to keep cryptocurrencies off its shores. Companies such as Coinbase and Binance have been targeted by the SEC, who have tried their best to comply with regulations to no avail.
Despite the best efforts of the US to stifle the industry, crypto companies are looking to other jurisdictions that allow them to operate within a reasonable regulatory framework. The European Union’s (EU) landmark MiCA regulation is about to come into force and the UK is rapidly developing a regulatory framework. We are likely to see the EU and the UK become crypto hubs.
Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.