{"id":18538,"date":"2023-05-10T09:32:31","date_gmt":"2023-05-10T09:32:31","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/biden-calls-to-end-18b-crypto-tax-loopholes-community-begs-to-differ\/"},"modified":"2023-05-10T09:32:33","modified_gmt":"2023-05-10T09:32:33","slug":"biden-calls-to-end-18b-crypto-tax-loopholes-community-begs-to-differ","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/biden-calls-to-end-18b-crypto-tax-loopholes-community-begs-to-differ\/","title":{"rendered":"Biden calls to end $18B \u2018crypto tax loopholes\u2019 \u2014 community begs to differ"},"content":{"rendered":"
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United States President Joe Biden recently shared an infographic on Twitter, calling to end \u201ctax loopholes\u201d that allegedly help wealthy crypto investors. Community members responded to the tweet, questioning the figures shared by the president and if the said loopholes exist.\u00a0<\/p>\n

Cutting such loopholes would save about $18 billion, according to Biden. However, the president did not provide any information on which loopholes existed and what reforms would lead to the potential savings amount the president shared.\u00a0<\/p>\n

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We don\u2019t have to guess what MAGA House Republicans value. They\u2019re telling us. pic.twitter.com\/BM6JGMEFeq<\/a><\/p>\n

\u2014 President Biden (@POTUS) May 9, 2023<\/a><\/p><\/blockquote>\n

Pseudonymous crypto researcher FatMan responded<\/a>, saying that Biden\u2019s \u201cfacts are off.\u201c The crypto analyst highlighted that the crypto market shrank by $1.4 trillion in 2022 while corporate profits in the U.S. were at $11.8 trillion. \u201cThe crypto market is both much smaller & fell heavily. We both know where the loopholes really are,\u201d FatMan tweeted. <\/p>\n

Dogecoin (DOGE) co-founder Billy Markus also replied<\/a> to Biden\u2019s tweet. Markus asked which loopholes existed and claimed he gave the government more money than he made in crypto, \u201cwhile taking all the risk.\u201c Markus then points out that most American crypto users are not rich but are trying to use crypto because they can\u2019t make ends meet.<\/p>\n

Meanwhile, another community member was seemingly frustrated, calling out the administration for going after crypto while receiving funding from the former FTX CEO Sam Bankman-Fried. <\/p>\n

Community member asking President Biden to give back the money received from FTX. Source: Twitter<\/em><\/figcaption><\/figure>\n

While others are unsure what crypto tax loopholes the president is tweeting about, Redditors theorized that it may be the Internal Revenue Service (IRS) wash sale rule \u2014 which prohibits selling securities at a loss and reacquiring it within 30 days \u2014 not being applied to crypto yet.\u00a0<\/p>\n

Related: <\/em><\/strong>White House silent on whether it will return $5.2M in donations from SBF<\/em><\/strong><\/p>\n

An example of this would be MicroStrategy\u2019s move to sell Bitcoin (BTC) in December 2022. On Dec. 21, MicroStrategy\u2019s subsidiary MacroStrategy sold 704 BTC\u00a0at an average price of $16,776 per BTC. The company also highlighted its intent to reduce its tax bill. <\/p>\n

On Jan 3, 2023, tax attorney and accountant Selva Ozelli broke down the sale and explained that it\u2019s a common strategy called tax-loss harvesting, where investors choose to reduce capital gains by selling their digital assets at a loss. <\/p>\n

Magazine: <\/em><\/strong>$3.4B of Bitcoin in a popcorn tin: The Silk Road hacker\u2019s story<\/em><\/strong><\/p>\n