Cetoex News – Texas is introducing a bill to ban a central bank digital currency (CBDC) in the state. The bill was introduced today by the 88th Legislature.

A central bank digital currency (CBDC) is a digital form of money that is a liability of the Federal Reserve, rather than a liability of commercial banks.

The bill details why, according to draftees, CBDCs are a bad idea. “Retail CBDCs are issued to the general public, establishing a direct relationship between the Federal Reserve and consumers,” the bill reads. “This could lead to unprecedented levels of government surveillance and control over private cash holdings and transactions.”

A government-controlled digital currency has been a hot topic among government officials, with many against the idea. Recently, Florida Governor Ron DeSantis officially banned Central Bank Digital Currencies (CBDCs) within the state. Additionally, Senator Ted Cruz has also shared distrust in CBDCs. He recently stated that the implementation of central bank-issued digital assets would be “profoundly dangerous” to society. 

“Many CBDC proposals involve the centralized collection of transaction data, which poses major privacy and security risks, such as making it easier for intruders to access the data of more users. However, proposals that include strategies to minimize those risks often reduce transparency for regulators seeking to detect money laundering, terrorism financing, and other illicit activities. The implementation of a CBDC would make countless U.S. citizens more vulnerable to intrusive federal oversight and security threats.”New Texas Bill

Texas Senator Ted Cruz previously introduced a bill in March to ban the Federal Reserve from adopting a central bank digital currency as well.

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Cetoex News – Senator Bernie Sanders says that income over $1 Billion should be taxed at a 100% rate. Sanders expressed that belief in an exchange on Friday evening with the host of HBO Max’s Who’s Talking to Chris Wallace.

Are you basically saying that once you get to $999m that the government should confiscate all the rest?” Wallace asked the US senator. Senator Sanders is an independent, but works with Democrats and has helped them attain their current slim majority in the upper congressional chamber.

“Yeah,” Sanders replies in the interview. “You may disagree with me but, fine, I think people can make it on $999m. I think that they can survive just fine.”

Earlier in the interview, Wallace brings up how the late Sam Walton could make the giant retail chain Walmart the largest single private employer in the US. Walton’s family’s net worth sits at about $225bn. Sanders countered that Walmart in many cases pays starvation wages to its 1.2 million employees despite the Waltons’ riches.

“Many of their workers are on Medicaid or food stamps,” Sanders said. This was in reference to forms of government assistance for which low-income Americans can qualify. “In other words, taxpayers are subsidizing the wealthiest family in the country. Do I think that’s right? No, I don’t.”

He added that if he were in charge: “If you make a whole lot of money, you’re going to pay a whole lot of money in taxes.”

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Cetoex News – President Joe Biden recently disclosed a potential $5.5 trillion tax increase during his annual budget planning process. Over the following ten years, this tax idea is anticipated to be put into effect. He has included a crypto tax in the new budget proposal.

Joe Biden’s new budget plan includes crypto tax changes

The 2024 budget released on Thursday includes “wash sale rules” for cryptocurrencies. This provision will affect tax deductions on losses. In simple terms, the losses on the sale and quick repurchase of cryptocurrencies are eliminated from tax deductions. The proposal also applies to bonds and stocks.

The budget plan for cryptocurrencies is estimated to raise $31.6 billion in tax revenue over the next ten years. Other cryptocurrency-linked proposals in the budget include information reporting by digital asset brokers and mark-to-market tax rules for cryptocurrencies, etc.

Biden’s government believes that these proposed changes will bring in another $40 billion to the government over the next ten years. However, all these are likely to come into effect if the proposal is approved by Congress. The topic of cryptocurrencies and tax revolving around it has always been looked upon as a puzzling decision.

Joe Biden’s other budget updates

Other budgetary updates in his proposal included the following:

-The government projects to spend $6.9 trillion in 2024, with the plan hopefully reducing the deficit by around $3 trillion

-The $3 trillion was said to come from taxing the wealthy and corporations, with a minimum 25% tax on the .01% wealthiest Americans.

-A proposed increase on the Medicare tax rate for incomes above $400K with a 1.2% increase of 3.8% to 5%.

Will this budget pass? We will keep you updated on developments, particularly if they affect the overall markets.

NEWS BY – CETOEX NEWS