U.S. President Joe Biden shared an infographic on Twitter, calling for an end to tax loopholes that are allegedly helping wealthy crypto investors.
Community members responded to the tweet post, questioning the numbers shared by the president and whether the gaps exist. According to Biden, cutting such gaps would save about $18 billion. However, the president did not provide any indication as to what gaps exist and which reforms will lead to the potential savings the president is sharing.
Community Members Commented
Anonymous crypto researcher FatMan responded by saying that Biden was closed to the facts.
The crypto analyst underlined that while corporate profits in the US were $11.8 trillion, the crypto market shrank by $1.4 trillion in 2022. FatMan commented, “The crypto market has dropped drastically. We both know where the gaps really are.”
Among those who responded to Biden’s post was Dogecoin founder Billy Markus.
In his post, Markus asked what loopholes there were and claimed he gave the government more money than he made in crypto while taking all the risk. Markus later stated that most American crypto investors are not rich and try to use crypto because they cannot make a living.
Reddit users said this could be due to the Internal Revenue Service (IRS) rule banning the sale of securities at a loss and the repurchase of them within 30 days, since they haven’t yet applied to crypto.
An example of this is MicroStrategy’s move to sell Bitcoin in December 2022. On December 21, MicroStrategy sold 704 BTC at an average price of $16,776 per BTC. The company also stressed its intention to reduce its tax bill.
On January 3, 2023, tax attorney and accountant Selva Özelli announced the sale, explaining that this is a common strategy called tax loss harvesting, where investors choose to reduce their capital gains by selling their digital assets at a loss.
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