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Proposed Changes in the US President Biden’s Budget

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According to reports, relevant documents show that the budget of US President Biden will cancel the tax subsidies for cryptocurrency transactions, limit the ret

Proposed Changes in the US President Bidens Budget

According to reports, relevant documents show that the budget of US President Biden will cancel the tax subsidies for cryptocurrency transactions, limit the retirement tax benefits for high-income people, and end the “loophole” with interest.

US President Biden’s budget will eliminate tax subsidies for cryptocurrency transactions

Analysis based on this information:


An announcement from the White House indicates that President Joe Biden’s budget plans to cancel all tax subsidies for cryptocurrencies in the US. The proposal is a part of the broader plan to generate revenue to finance Biden’s policy agenda, including increased spending on infrastructure, education, and social programs. Under the proposed plan, cryptocurrency transactions would be subject to the same tax rules as stocks and bonds. This implies that individuals making gains from cryptocurrencies would have to pay taxes on those gains. The move seems to be a response to the growing concern that cryptocurrencies are being used for illegal activities such as money laundering, tax evasion, and terrorism funding.

The proposed budget also aims to limit the retirement tax benefits enjoyed by high-income earners. Currently, individuals who contribute to an Individual Retirement Account (IRA) can deduct up to $6,000 of their contribution from their taxable income. However, under the new plan, the deduction would only be available to individuals earning up to $400,000 per annum. Furthermore, the proposed plan would also limit the income tax deduction on any retirement plan contributions for a taxpayer earning more than $400,000. This proposal aims to ensure that the wealthy, who have larger retirement accounts, pay higher taxes while also aiming to generate more revenue for the government.

Finally, the proposed budget plans to close what is referred to as an “interest loophole.” This is a tax benefit enjoyed by high-income earners who use debt to invest in various assets. They can use the interest paid on the loan to offset any taxes owed on their investment income, thus paying less tax. The proposed plan aims to put an end to this loophole, prompting high-income earners to pay more tax.

In conclusion, President Biden’s proposed budget plan aims to bring more revenue to the government coffers through increased taxes on high-income earners and reclassification of cryptocurrencies. The proposal, if implemented, will impact the crypto industry significantly and could potentially bring more cryptocurrencies under greater scrutiny. Furthermore, it could lead to the creation of broader regulations governing the use and trade of cryptocurrencies.

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