US President Joe Biden Calls Proposal to Reduce Crypto Tax ‘Unacceptable’ Amid Debt Pressure: Report

US President Joe Biden is not considering any relaxation in taxes levied on crypto holders and investors in the country.

Written by Radhika Parashar, Edited by Manas Mitul | Updated: 22 May 2023 17:01 IST

US President Joe Biden Calls Proposal to Reduce Crypto Tax ‘Unacceptable’ Amid Debt Pressure: Report

Photo Credit: Unsplash/ Ewan Kennedy

Biden does not wish to obstruct any inflow of capital to the US treasury

Highlights

US levies up to 37 percent tax on short-term capital gains
US levies 20 percent tax on long-term capital gains
US owes a total of $31.5 trillion in debts as of now

The US is not ready to take any financial risk or lose incoming capital, especially now when its economy has hit an inflation-ridden roadblock. US President Joe Biden, under the circumstances, is not considering any relaxation in taxes levied on crypto holders and investors in the country. Biden's stance on slashing crypto taxes came to light after the Republicans recently floated a proposal to the US government suggesting some concessions on crypto taxes — which failed to come across as an economically viable decision as per the US President.

The US levies 10 percent to 37 percent tax on short-term capital gains and crypto income whereas long term capital gains are taxed between zero percent to 20 percent.

Biden has outrightly denied even mulling over the proposal for the US to reconsider the tax it has levied on crypto activities. The US President was speaking at the ongoing G7 summit in Japan's Hiroshima.

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“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,” the President Biden was quoted as saying in a CryptoSlate report on Monday, May 22.

In the opinion of the US President, the proposal extended by the Republicans is “quite frankly, unacceptable”.

The US is reeling under tremendous debt pressure at present. It is estimated that the US owes a total of $31.5 trillion (roughly Rs. 26,10,46,800 crore) in public as well as intragovernmental debts.

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Despite the US having raised the interest rates multiple times these past five months, the US would default on its debt by June 1, if the debt ceiling for the nation is not raised.

Hence, at this time, Biden does not wish to obstruct any inflow of capital to the US treasury by reducing crypto taxes.

Last month, three traditional crypto-friendly banks collapsed in the US within one week, scaring investors and the common public.

The Federal Reserve Bank of Chicago (FRBC) in its recent report blamed the downfall of crypto projects like Terra and FTX last year for the ongoing banking crisis in the US.

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Further reading: Cryptocurrency, Joe Biden, Crypto Tax, US

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More