In a recent statement, U.S. presidential candidate, Robert Kennedy Jr., issued a stark warning about the state of the economy. According to Kennedy, the recent banking collapse is merely the beginning of a much larger crisis that is unfolding, as reported by Bitcoin.com. He stressed that the situation is not limited to the banks alone, and that there are many other factors contributing to the problem. Kennedy criticized President Joe Biden’s proposed tax on crypto mining, arguing that it would stifle innovation and drive the industry away from the U.S. He emphasized the importance of fostering growth and development in this rapidly evolving sector, rather than hampering it with punitive taxes and regulations.
Kennedy, who recently launched his presidential campaign, raised concerns about the state of the U.S. economy, the banking crisis, and President Joe Biden’s proposed tax on cryptocurrency mining. Specifically, Kennedy cautioned that the U.S. could face an impending economic catastrophe, which he referred to as a “mega-crisis.”
In a recent tweet, he cited the decline in job openings for three consecutive months, the second consecutive month of core factory order drops, and inflation’s detrimental effects on the middle and working classes. He believes that the nation needs to prioritize rebuilding to tackle these issues.
In response to President Joe Biden’s assurance that the banking system is secure, Kennedy pointed out the crashing of bank stocks and called for more than mere “perception management” and platitudes. He added, bailouts only worsen the situation by encouraging reckless risk-taking with depositors’ money, with the banks knowing that they will be bailed out by taxpayers when they make losses. While he understands the logic behind the rescue of First Republic Bank, he believes that the problem lies with a system of institutions that are too big to fail and depend on bailouts. Regulators took over First Republic Bank and sold its assets to JPMorgan Chase, highlighting the need for a long-term solution to the problem.
In particular, Kennedy criticized the proposed Digital Asset Mining Energy (DAME) excise tax, labelling it as a poor choice. He believed that Biden’s proposed tax on cryptocurrency mining is flawed.
The Biden administration is advocating for a tax that was initially proposed in a recent federal budget plan, which seeks to make crypto miners pay 30% of their energy expenses. Earlier this week, the Biden administration released a blog post that revealed the DAME tax, which was included in the president’s comprehensive 182-page budget plan for the fiscal year 2024.
The proposed tax aims to address the current lack of accountability that crypto mining firms have regarding the environmental pollution they generate, the higher energy prices they cause, and the contribution to greenhouse gas emissions that impact climate change. The Council of Economic Advisers (CEA) describes this tax as a means to make mining firms pay for the full cost they impose on others. The introduction of this industry-specific tax is a unique approach that could potentially undermine the profits of these businesses.
Kennedy elaborated on Twitter, stating that cryptocurrencies, specifically Bitcoin, and other crypto technologies are significant sources of innovation. He believes that limiting the industry would lead to stifled innovation and push it to other countries.
While some argue for strict regulations on cryptocurrencies to prevent criminal activities, Kennedy highlights that privacy is also crucial for dissidents and ordinary citizens. He emphasized that governments can control bank accounts and payment platforms to harass their enemies and suppress dissent. Therefore, until trust in government is restored (which seems unlikely), the use of both cash and cryptocurrency is necessary to ensure freedom.
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