• President Joe Biden at the G7 summit opposed a debt deal that would benefit crypto traders and wealthy tax cheats.
• The debt agreement is between Republican leaders, and provides protections for crypto and stock investors.
• The protections involve tax loss harvesting, which reduces taxes due by offsetting capital gains with losses.
President Biden Refuses Debt Deal Friendly to Crypto Traders
The United States government has long been hostile towards cryptocurrencies, and the latest to add fuel to the fire is U.S. President Joe Biden himself. At the final day of the G7 summit in Japan, he addressed ongoing debt default talks saying he would not back a deal that supports tax cheats and crypto traders.
No Love for Crypto From Biden
The bipartisan debt ceiling agreement between Republican leaders includes provisions that would provide protection for investors in both stocks and cryptocurrencies via a process known as “tax loss harvesting”. This process entails selling assets at a loss before immediately repurchasing them so that there is diminished profit but less taxes due on capital gains. However, President Biden was adamant about his refusal of this agreement stating „I’m not going to agree to a deal that protects wealthy tax cheats and crypto traders while putting food assistance at risk for nearly a million Americans“.
What Is Tax Loss Harvesting?
Tax Loss Harvesting (TLH) is an investment strategy used by individuals or businesses who want to reduce their taxable income by offsetting capital gains with losses from investments held in their portfolio. TLH involves selling an asset at a loss before immediately repurchasing it so that there is diminished profit but less taxes due on capital gains when filing taxes annually. It also helps investors maintain their overall portfolio value since they can reinvest those proceeds into other higher-returning investments without incurring any additional costs or taxes associated with liquidating those holdings completely.
Are There Any Risks Associated With TLH?
Whilst TLH may be beneficial in reducing taxable income, it could also end up costing you money if done incorrectly or if your timing isn’t ideal; therefore it’s important to understand all potential risks associated with this strategy before implementing it into your own investing plan. Additionally, if you are found guilty of deliberately manipulating markets through TLH then you could face criminal prosecution under securities laws which carry hefty fines or even jail time depending on the severity of your actions – something worth bearing in mind when considering using this strategy!
In conclusion, President Biden refuses debt agreement friendly towards crypto traders as he believes it will only benefit wealthy tax cheats and put food assistance at risk for nearly 1 million Americans living in poverty across America today. Furthermore, Tax Loss Harvesting (TLH) can be beneficial in reducing taxable income however it needs to be understood thoroughly as there are risks involved such as market manipulation which carries hefty fines or even jail time depending on the severity of one’s actions should they be found guilty of doing so knowingly or unknowingly