US President Joe Biden recently shared a message on Twitter, calling for an end to “tax cuts” that allegedly help wealthy crypto investors. Members of the community responded to the tweet, questioning the numbers the president was sharing and whether there were flaws. Closing those loopholes would save about $18 billion, Biden said.
However, the president did not provide any information about the gaps in the reforms that would increase the amount of money the president could save. Anonymous crypto analyst FatMan responded, saying that “Biden’s truth is not good.” A crypto analyst said that the crypto market has decreased from $1.4 billion in 2022 while the company’s value in the United States is $11.8 trillion. “Crypto market is very small and very low. We both know where the spot really is,” FatMan tweeted.
Dogecoin DOGE ($0.07) founder Billy Markus also responded to Biden’s tweet. Markus asked what the loopholes were and said that he gave the government more money than he was getting in crypto, “while taking all the risks.” Markus then stated that many Americans who use crypto are not rich but are struggling to use crypto because they cannot afford to pay the bills.
Meanwhile, another member of the community seems to be frustrated, calling for regulators to pursue crypto while receiving funding from former FTX CEO Sam Bankman-Fried. While others are not sure of the crypto tax loopholes that the president is talking about, Redditors said that it could be the Internal Revenue Service (IRS) sales rule – which prohibits the sale of securities in losses and redeem them within 30 days – does not apply to crypto.
An example of this would be MicroStrategy’s decision to sell Bitcoin BTC ($27,599) in December 2022. On December 21, MicroStrategy subsidiary MacroStrategy sold 704 BTC at an average price of $16,776 per BTC. The company also indicated its intention to reduce its tax liability.
On January 3, 2023, tax lawyer and accountant Selva Ozelli broke down the sale and explained that it is a common scheme called tax deduction, where entrepreneurs choose to reduce capital gains by selling their digital assets at a loss.
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