Speaking at the G7 conference in Hiroshima, US President Joe Biden stated that he would not agree to a compromise that would shield the wealthy, tax evaders, and cryptocurrency speculators while compromising aid to people in need.
“We have to be honest with each other and with the world: we cannot continue to support a system that allows billionaires and big companies to avoid their share of the responsibility of funding society,” Biden said.
“Cryptocurrencies are a new form of speculation and anonymity that is undermining our ability to collect taxes and fight crime. We cannot allow this technology to become a tool to ignore the law,” Biden said.
Biden also expressed alarm about the increasing popularity of cryptocurrencies, which he believes are being used for tax evasion and money laundering. He added that his administration plans to levy a 30% consumption tax on Bitcoin miners in order to make the practice less appealing.
Earlier, Republican Senator Cynthia Lummis opposed a 30% tax on Bitcoin mining in the United States. “It is extremely important that the development of this technology and the mining of Bitcoin itself take place in the United States,” the senator emphasized. “We can’t keep up with China, Russia, and other countries that are actively developing this sector.”
The bitcoin tax proposal was included in a $1.2 trillion infrastructure spending package that Biden and a group of bilateral senators agreed to last month. However, the package still needs to be approved by the House of Representatives, where it could face resistance from both Republicans and Democrats.