Crypto Tumbles Following China Crackdown
Cryptocurrency took a huge hit this weekend (including Bitcoin, which slid over -6%) following Vice Premier Liu He’s announcement of an intensified crackdown on the mining and trading of cryptocurrency in China. This was the first time China’s cabinet has gone after cryptocurrency mining, with shockwaves felt throughout the crypto community. The crackdown on crypto mining and trading is directly linked to China’s goal of carbon neutrality by 2060. Cryptocurrency mining uses powerful and specially designed computers, which in turn consume massive amounts of energy. To put it in perspective, if Bitcoin were a country, it would rank 29th out of a theoretical 196, narrowly exceeding Norway’s consumption of 124 TWh (Terrawatt Hours, a measurement of electric energy).
World Corporate Tax?
A G7 deal to enforce a global minimum tax for multinational companies is closer than ever. The G7 is made up of global economic leaders consisting of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. The US recently changed its stance to accept a minimum tax rate of at least 15%, which is reduced from its original aim of 21%. Smaller countries, like Ireland—who attracts businesses with a low tax rate of 12.5%—are expected to give some pushback, believing that they could not otherwise compete with larger countries’ economies. The US currently still holds a corporate tax rate of 21% and is looking to increase it to 28%, which could potentially drive business headquarters out of the country in search of cheaper rates.
Baby Come Back (to Work)
In an attempt to counteract the unwaveringly low employment rates within the US, many Republican-led states are planning to end or reduce federal unemployment benefits by offering up to $2,000 in one-time bonuses to incentivize the mass return to the workforce. By ending federal benefits, weekly unemployment payments would be reduced by $300. The change could take place as soon as June 12, depending on the state.
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