White House proposals to close tax loopholes nixed by GOP - report

The debt-ceiling standoff rumbled on as congressional Republican leadership last week rejected all White House proposals seeking to reduce the U.S. deficit by closing a number of tax loopholes, the Washington Post reported Monday, citing three people familiar with the matter. As part of a broader budget deal with House Republicans, about a dozen tax plans were laid out by White House officials, some measures of which targeted cryptocurrency transactions and large real estate investors, two of the people said. Time is running out for an agreement to be reached between the Biden administration and the GOP. At the beginning of May, Treasury Secretary Janet Yellen warned that the Treasury could run out of cash and extraordinary measures to pay the government's bills as early as June 1. Biden wants Congress to raise the borrowing limit, but House Republicans have said they will not do so if spending cuts are not agreed upon. The proposed crypto rule would prohibit investors from claiming a loss on an asset that they then repurchase shortly thereafter. Likewise, the real estate proposal would stop investors from deferring taxes on swaps of property. All in, both rule changes would raise tax revenue to the tune of $40B, the Washington Post noted , significantly trailing the $4.8T in spending cuts that Republicans want to take effect for the deficit to close. Dear readers: We recognize that politics often intersects with the financial news of the day, so we invite you to click here to join the separate political discussion. More on the Debt-Limit Impasse House Speaker nixes possibility of short-term debt-limit extension - report Yellen: Debt ceiling focus on Congress; 'Have to default' somewhere if they fail Navigating The Potential Debt Ceiling Mayhem U.S. Debt Ceiling: Bills Borrowing And Brinkmanship