Following his participation in the Group of Seven (G7) forum in Japan, President Joe Biden took the opportunity to criticize “wealthy tax cheats and crypto traders” who, according to him, have been benefiting from Republican lawmakers. The negotiations between Biden’s administration and the Republicans are crucial for the approval of a new budget, without which the American government could potentially default on its debt payments on June 1.
The G7 forum serves as a platform for political discussions and negotiations among Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. During a press conference at the end of the conference, Biden stated that his latest proposed budget included spending cuts of over a trillion dollars, in addition to the nearly $3 trillion in deficit reductions previously proposed through both spending cuts and increased revenue.
“Before I left for this trip, I met with all four congressional leaders, and we agreed the only way to move forward was in a bipartisan agreement,” Biden emphasized. “I’ve done my part… now it’s time for the other side to move away from their extreme positions, because much of what they’ve already proposed is simply, quite frankly, unacceptable.”
Biden proceeded to outline a list of issues where he believed Republicans differed from Democrats, framing it as a battle of priorities.
“Let me be clear, 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 1 million Americans,” he declared.
Among the unacceptable compromises mentioned by the President were $30 billion in tax breaks for the oil industry and $200 billion in “excess payments” for the pharmaceutical industry, rather than preserving Medicaid or prioritizing the jobs of 100,000 school teachers or 30,000 law enforcement officers.
Biden stressed that it was time for Republicans to acknowledge that a bipartisan agreement could not be reached solely on their terms. He echoed his sentiments from earlier Twitter posts, in which he accused “MAGA House Republicans” of supporting “tax loopholes that help wealthy crypto investors” while opposing food safety inspections.
In his proposed $6.9 billion budget plan, President Biden emphasized the necessity of “modernizing rules, including those for digital assets” and “applying wash sale rules to digital assets and addressing related party transactions.” This would essentially subject crypto assets to the same regulations as more traditional investments.
Meanwhile, the Biden administration has been advocating for a 30% excise tax on the electricity consumed by cryptocurrency mining. However, some lawmakers have expressed opposition to this proposal, considering it a non-starter.
As President Biden returned to Washington, D.C., it was reported by The Washington Post that he and House Speaker Kevin McCarthy had agreed to resume negotiations on Sunday, with the aim of avoiding “an economic catastrophe as few as 11 days away.”
“Default is not an option,” Biden emphasized, stating that negotiations would continue during his flight back to the U.S. He asserted that the United States has never defaulted on its debt and would not do so in the future.