Brazilians may soon be required to pay up to 15% tax on income derived from cryptocurrencies held on exchanges outside the country, after new income tax rules were approved by the Brazil Senate on Nov. 29. The bill has already passed in the Chamber of Deputies and is expected to be approved by President Luiz Inácio Lula da Silva, as his administration initiated the income tax rule changes, Cointelegraph Brazil reports. Under the bill, any Brazilian who earns more than $1,200 (6,000 Brazilian reals) on exchanges based outside Brazil would be subject to the tax, effective Jan. 1, 2024. The change makes those funds taxable at the same rate as funds held domestically. Funds earned before that date would be taxed when accessed by the owner, meanwhile, earnings on funds accessed before Dec. 31 will be taxed at 8%. Fortunately, you are misunderstanding thisBrazil is not taxing people regardless of residencyWhat changes with PL 4173/23:CURRENTLY: Tax-deferralIf you own an offshore company or trust while being a Brazil tax resident, you only pay tax when it distributes profits to… https://t.co/iiG1YyVUr9 — BowTiedGlobe | Your Freedom Dealer (@BowTiedGlobe) November 29, 2023 The bill also affects “exclusive funds” — investment funds with a single shareholder — and foreign companies active on the Brazilian financial market. The government hopes to raise $4 billion (20.3 billion Brazilian reals) in 2024. Senator Rogério Marinho voiced his opposition to the bill. He said: “The government is creating a tax because it is a poor manager.”  In September, the governor of the Banco Central do Brazil Roberto Campos Neto, announced plans to tighten regulations on cryptocurrency in connection with a sharp rise in its popularity in the country. At the time, he said he suspected crypto was being used for tax evasion.  The Brazilian central bank was given jurisdiction over virtual asset service providers in June. Crypto-based securities are regulated by the Comissão de Valores Mobiliários — Brazil’s equivalent of the United States Securities and Exchange Commission. Magazine: 6 Questions for Lugui Tillier about Bitcoin, Ordinals, and the future of crypto

According to Cointelegraph, Thailand's Revenue Department plans to impose personal income tax on foreign revenues, including those from cryptocurrency trading, for individuals residing in the country for over 180 days. The new rule will take effect on January 1, 2024, with the first tax forms, including overseas income, to be delivered in 2025. Previously, only foreign income remitted to Thailand in the year of earning was taxed. The new regulation closes this loophole, requiring individuals to declare any income earned overseas, even if it is not used in the local economy. A Finance Ministry official explained the rationale behind the change, stating that individuals must pay tax on income earned abroad, regardless of how it is earned or the tax year in which it is earned. The policy specifically targets residents trading in foreign stock markets through foreign brokerages, cryptocurrency traders, and Thais with offshore accounts. In July, Thailand's Securities and Exchange Commission (SEC) required digital asset service providers to offer adequate warnings highlighting risks associated with cryptocurrency trading and prohibited any forms of crypto lending services. However, the trend for tight scrutiny over the crypto industry might change with the recent election of the new prime minister, real estate tycoon Srettha Thavisin, who participated in a $225 million raise for a crypto-friendly investment management firm XSpring Capital and issued its own token through XSpring in 2022.

This Crypto City guide looks at Finlands crypto culture: The most notable projects and people, its financial infrastructure, which retailers accept crypto, and where you can find blockchain education courses. City: HelsinkiCountry: FinlandPopulation: 1.55 million Established: 1550Languages: Finnish and Swedish, with English widely spoken Jump to: Crypto culture, Where to spend crypto in Helsinki, Crypto projects and companies, Local crypto controversies, Crypto education and community, Notable crypto figures from Helsinki Situated on the Gulf of Finland, Helsinki is the capital of Finland and is arguably the worlds most northern metropolis, with 1.5 million people 30% of the countrys population calling the metro area home. Its inhabitants spend winter in a cold, still darkness but enjoy 11:00 pm sunsets in summertime. Helsinki Cathedral at sunrise, after a night of partying. (Elias Ahonen) Major population centers are nearby, with both Tampere and Turku reachable in two hours via road or rail. There are regular ferry services across the Baltic including to Estonias capital of Tallinn, which can be reached in two hours by sea, and there are also plans to link the cities via an undersea tunnel. The nearby Helsinki-Vantaa airport is the countrys main international gateway and serves as a transfer hub for Asia. Finland has been ranked the happiest country in the world for six consecutive years by the World Happiness Report. Its income tax rate tops out at 56% one of the highest in the world and the tax data of every resident is public. Helsinki played host to the 1952 Summer Olympics. The country joined the European Union in 1995 and adopted the euro as its currency in 1999. In 2023, Finland became a member of NATO. As the capital, Helsinkis crypto events draw participants from across the country, making it the natural meeting place for the industry. For that reason, projects and companies from nearby cities like Tampere and Turku are also included here. The area was first settled around 5000 BC as the ice age retreated. Vikings raided the established settlements, as did Swedish crusaders in the 10th and 13th centuries. The city was formally established in 1550 as a Swedish trading post, defended by Suomenlinna (Finlands fortress), the largest sea fort in Europe. Later, under Russian control as the Grand Duchy of Finland, the emperor moved the capital from Turku to Helsinki, which was closer to St. Petersburg. Finland became independent in 1917, after which it resisted Soviet occupation in the 1940 Winter War. The Finnish Parliament. (Elias Ahonen) Crypto culture Helsinkis claim to crypto fame rests with Martti Malmi, a software developer who in 2009 sold 5,050 BTC for a $5.02 PayPal transfer, marking the first time that Bitcoin was exchanged for fiat currency. It occurred before the much better-known May 22, 2010, Pizza Day, when Bitcoin was first used to purchase a physical good. Eventually, Malmi used most of his Bitcoin to purchase a studio in the metro area. If hed hung on to it, itd be worth $171 million today. The Bitcoin was used to seed an exchange called New Liberty Standard, which established the first BTC price of 1,309.03 BTC for $1. Found the first known bitcoin to USD transaction from my email backups. I sold 5,050 BTC for $5,02 on 2009-10-12. https://t.co/8XcBmzJljf Martti Malmi (@marttimalmi) January 15, 2014 Malmi was, in some ways, a product of his environment, with Helsinki recognized as a bed of technical innovation since Nokia began to dominate the cellphone market. In 1991, Linus Torvalds began working on what became Linux at the University of Helsinki. It is also home to many video game companies, with local firm Rovios Angry Birds achieving global fame in 2009. Helsinki is also the home of Aave founder Stani Kulechov, though he has moved abroad with the company. In 2019, a then-staunchly Bitcoin maximalist group called Konsensus organized the translation of Saifedean Ammous 2018 book The Bitcoin Standard into Finnish, and later also translated The Little Bitcoin Book by The Bitcoin Collective. According to one member, the organization has since become more accepting of other cryptocurrencies and blockchain use cases. The crypto community in Helsinki and Finland is somewhat disorganized and divided, with many enthusiasts being interested in one facet be it Bitcoin, NFTs or Web3 without embracing the whole, and thus having few common threads. Still, a certain grassroots energy is evident. The founding meeting of The Finnish Bitcoin Association in Helsinki on May 6, 2023. (Elias Ahonen) Where can I spend crypto in Helsinki? Paying with Bitcoin is not common in Finland, where card and app payments dominate. One notable exception is the restaurant Faro, at which a few people are likely to buy a burger and beers with sats at the monthly Bitcoin meetup. On the bar side, Taudo Baari and Time Bar also accept crypto. There is also the Osuva shooting range. Samuel Harjunp, CEO and co-founder of hardware startup Xellox and regular at the Faro Bitcoin meetup, tells Magazine about the state of Bitcoin acceptance: A few restaurants and bars have already been orange-pilled the biggest obstacles are the payment infrastructure and bookkeeping. Crypto projects and companies in Helsinki Today, Helsinki has a vibrant tech and startup scene with many coworking spaces. The city is also host to the annual Slush startup conference, which draws 25,000 participants. Web3 Helsinki is a student-run organization that organized its first event on April 20, 2020, with about 150 people in attendance, making it perhaps the largest single crypto event of the year. 2023s events have included the Web3 Bash in late April, followed by the Aurora Nordic Web3 Conference in June. On June 6, the BRIDG3 Blockchain summit was held at Tamperes Nokia Arena, focusing on Web3, the metaverse and decentralized autonomous organizations. The Aurora Nordic Web3 Conference, held in Helsinki on June 6, 2023. (Elias Ahonen) The Finnish Bitcoin Association was established on May 6, in an event attended by Magazine, with membership fees paid primarily with Bitcoin via the Lightning Network. Upon the conclusion of formalities, the saunas of the hosting coworking space were fired up. For those interested in NFTs, Fungi is a platform advertising a no-code solution that lets organizations build NFT-based communities. One of these was a metaverse island called Cornerstone for VR studio ZOAN, where 100 plots could be purchased as NFTs. HABBO NFT, operated by the local creators of the 23-year-old online chat room game HABBO Hotel, has dropped an 11,600-piece avatar collection on OpenSea and is currently developing an NFT-based game. A group called The Future of Art has also dedicated itself to promoting digital art and runs an NFT gallery. The Finnish Web3 Landscape, according to Tampere-based The Good Cartel, which exists to support Finnish Web3 startups. (The Good Cartel) An aspiring LinkedIn competitor, Kleoverse, is a proof-of-talent Web3 platform for recruiters and jobseekers that displays skills such as knowledge in programming languages through badges instead of text on a resume. Phaver is building a Web3 social media app powered by Lens Protocol, which bills itself as the social layer of Web3. Phaver is one of many local projects that have worked with tech design studio STRGL, which specializes in protocol-level Web3 solutions. STRGLs managing director, Kasper Karimaa, sees Helsinki as a haven for developers: Finlands role in blockchain innovation through its agile engineering community makes Helsinki the perfect place to assemble a skilled team in research, design and development. One of the most widely known crypto companies in the country was the P2P exchange LocalBitcoins, which employed about 50 people before closing its doors in February 2023. CEO Nikolaus Kangas told Cointelegraph that this was due to a failure to turn our trade volumes and declining market share back to growth. This is it! Here is your last chance to score a Denarium physical #bitcoin before we close shop forever. Don't miss out on this unique opportunity to grab a piece of crypto history! pic.twitter.com/5oYKqMuGki — Denarium Bitcoin (@DenariumBitcoin) July 18, 2020 Bittiraha, which translates to bit money in Finnish, is another old local crypto company. It was founded circa 2012 and installed the countrys first Bitcoin ATM at the Helsinki railway station in December 2013. The company was also a distributor of Casascius physical Bitcoin and eventually made its own line of Denarium wallets. The parent company, Coinmotion based a few hours north in Jyvskyl now operates a cryptocurrency exchange. Another major Finnish exchange called Northcrypto can be found in Turku. A euro stablecoin has also been developed in the city. Membrane Finances EUROe was launched in February 2023 and is designed to be an EU-regulated full-reserve stablecoin that is compliant with recent legislation. While this is notable considering the relatively few operational euro stablecoins, volume remains low at approximately $20,000 per day. Membrane Finance is excited to announce the launch of EUROe on Ethereum!Read more at https://t.co/nV8dYKkBmK, and read the thread below to see how you can get started with $EUROe from today! — EUROe (@EUROemoney) February 2, 2023 Helsinki native Anita Krypto Granny Kalergis spends most of her time in Dubai, where she organizes blockchain conferences. She feels that Finnish entrepreneurs and decision-makers lack bravery, preferring to wait for someone else to take the lead and for regulatory certainty both from the national and EU levels. Most activity is not advertised, with especially older business people afraid to rock the boat or make major moves, she observes. Companies here will build something to 95% completion before opening their mouth, whereas projects in other countries will raise money and build partnerships based on a white paper while testing in production. Helsinki is surrounded by the sea and leaves room for nature. (Elias Ahonen) Helsinkis crypto controversies In 2018, the Finnish customs service planned to auction 1,666 BTC that it had seized in a drug case, but decided not to proceed due to concerns that the virtual money would return to the hands of criminals, displaying a rather negative official view of cryptocurrency. In July 2022, the state eventually auctioned nearly 2,000 BTC for $47 million, with proceeds being donated to Ukraine.  The Finnish Government decided on significant additional aid to #Ukraine. Finland will donate tens of millions of euros from the sale of #bitcoin seized by Finnish Customs to Ukraine. This historic decision was taken by the Ministry and Finance and Ministry for Foreign Affairs. pic.twitter.com/RNDenhsBWH — Valtiovarainministeri | Finansministeriet (@VMuutiset) April 28, 2022 In December 2021, local media reported a trend of investment scams involving the faces of prominent people, including industrialist Heikki Herlin and then-Prime Minister Sanna Marin.  Earlier in 2018, the police also made warnings regarding a trend of Bitcoin blackmail relating to bogus claims that hackers had webcam material of users visiting pornographic websites. In 2022, a Helsinki watch dealer fell victim to a common crypto scam, handing over Rolex watches worth $400,000 after mistakenly believing that he had received a Bitcoin transaction. Cryptocurrency, often adjacent to scams in the news, has come to be viewed with a relatively high degree of suspicion across most of society. Commenting on the decision to halt the 2018 customs seizure sale, Pekka Pylkknen, head of finance at the Finnish Customs Service, highlighted concerns about money laundering, telling national broadcaster YLE that the buyers of cyber currency rarely use them for normal endeavors. National media regularly interview outspoken cryptocurrency critic Aleksi Grym, head of fintech for the Finnish Central Bank, as an authoritative expert without seeking alternative pro-cryptocurrency views, though coverage has been improving. As one may notice from this article, the term Web3 is preferred, presumably due to its distancing from the negative stereotypes of cryptocurrency. Neither the countrys political establishment nor any major party or other large grouping of the population could be described outright as being pro-crypto. One reason for this could be Finlands stable, highly functional, and high-trust society, in which most people do not see the need to disrupt or fix something with cryptocurrency. Bank transfers are free and near-instantaneous across the EU, with cash use increasingly rare. Virtually nobody is unbanked, and the most trusted institution is the police, with 95% public support. Harjunp, whose startup is working on solutions to protect private keys, explains the disconnect: Many people dont understand Bitcoin and think its something between criminal money and a pyramid scheme. It is also notable that the moon mentality and dreams of quick wealth found in many cryptocurrency investors are generally seen in a particularly negative light, with Malmi noting that he never set out to make money with Bitcoin, perhaps owing to Finnish culture and his idealistic mentality. In the same vein, cryptocurrencies are seen by some as drivers of inequality in a country where large differences in wealth are often considered taboo. Read also Features Beyond In-Game Assets: Blockchain Gaming, DAOs, Guilds, and Ragequitting Features Capitalisms Perestroika Moment: Bitcoin Rises as Economic Centralization Falls Crypto education and community The Finnish Innovation Fund, or Sitra, has stated it as a priority to accelerate the local development of Web3 services, saying that its in Finlands interest to play an active role in ensuring that the metaverse is created in line with European values. The fund has also worked with the Finnish National Gallery to create The Finnish Metagallery, an art gallery in the Decentraland metaverse whose building is modeled from the Finnish Pavilion as it appeared at the 1900 Paris World Fair. Johanna Eiramo from the Finnish National Gallery presenting The Finnish Metagallery in Helsinki at Web3 Bash on April 27. (Elias Ahonen) In the old capital of Turku, The University of Turku hosts the Critical Inquiry Into DAOs (CIDS) research group, of which the author is part. Notable crypto figures from Helsinki Martti Malmi, the first person to sell Bitcoin for fiat; Henri Brade, board member of Coinmotion; Aleksi Lytynoja, CEO and co-founder of Kleoverse; Niko Laamanen, founder of Konsensus. Martin Wichmann, chairman of Konsensus; Antti Innanen, founder of Fungi; Sointu Karjalainen, founder of The Good Cartel; Juha Viitala, CEO and co-founder of Membrane Finance; Mika Timonen, founder of Habbo NFT; Olli Tianinen, CEO of Equilibrium Labs; Kasper Karimaa, managing director at STRGL; Jarmo Suoranta, CEO of TX – Tomorrow Explored. Keir Finlow-Bates, CEO of Chainfrog; Ville Runola, CEO and founder of Northcrypto; Samuel Harjunp, CEO and co-founder of Xellox; Joonatan Lintala, CEO and co-founder of Phaver. Cointelegraph team members often found in Helsinki: Elias Ahonen. If you have any suggestions for additions to this guide, please contact eliasahonen@cointelegraph.com. Subscribe The most engaging reads in blockchain. Delivered once a week. Email address SUBSCRIBE

According to CryptoPotato, ChatGPT, a popular AI chatbot, has listed eight investment asset classes that can protect people against inflation. The list includes traditional safe havens such as gold, real estate, US government bonds, and stocks. Gold has been used for centuries as a store of value and a hedge against inflation, while real estate can provide a steady stream of income as rents increase with the cost of living. Treasury Inflation-Protected Securities (TIPS) are designed to protect against inflation, adjusting with changes in the Consumer Price Index (CPI) and providing a guaranteed return above inflation. Stocks can be a proper long-term investment against inflation, as companies often have the ability to increase prices to keep up with inflation, and their profits can grow in nominal terms. The chatbot also highlighted less traditional assets, such as a broader category of commodities like silver, oil, and agricultural products, whose prices tend to rise with inflation. Collectibles, such as rare coins and art, have the potential to retain value or appreciate over time. Foreign currencies, like the Swiss franc, can perform better in inflationary conditions. Lastly, ChatGPT pointed out cryptocurrencies, specifically bitcoin, as a potential hedge against inflation due to their limited supply and decentralized nature. However, it also noted that cryptocurrencies can be highly volatile and speculative.

Main TakeawaysGlobalization refers to the increasing integration and interdependence of economies worldwide, driven by technological advancements, trade liberalization, and multinational corporations.Globalization impacts macroeconomics and international trade, affecting trade balances, exchange rates, capital flows, and competitiveness.Capital mobility across borders facilitates foreign direct investment (FDI) and brings both opportunities and challenges to economies, affecting economic growth and financial stability.Depending on how it’s managed, globalization can alleviate or exacerbate income inequality. It’s important that policymakers consider the challenges of managing monetary and fiscal policies to mitigate potential negative effects on income distribution.Globalization has transformed the way countries interact and conduct business, leading to both opportunities and challenges for the world economy. In this article, we will delve into the effects of globalization on macroeconomic factors, including trade balances, exchange rates, and some of the challenges posed by interconnected economies. Our goal is to introduce some of the impacts of globalization on the macro economy to help you understand the complexities of today's globalized world and make more informed decisions when navigating the crypto markets. So, let's explore the interplay between globalization and macroeconomics.The Basics of GlobalizationWhat is globalization?Globalization refers to the increasing integration and interdependence of economies worldwide. It involves the free flow of goods, services, capital, and information across borders, breaking down barriers to international trade and investment.Drivers of globalizationThere are several factors that have accelerated the process of globalization, including advancements in technology, improvements in transportation, liberalization of trade policies, and the growth of multinational corporations.International Trade and Macroeconomic ImplicationsBalance of trade and current accountGlobalization fosters cross-border trade, leading to the concept of the balance of trade. This represents the difference between a country's exports and imports of goods and services. A trade surplus occurs when exports exceed imports. In contrast, a trade deficit occurs when imports surpass exports. The balance of trade is a component of a country's current account, which records transactions between nations.Exchange Rates and trade competitivenessExchange rates play a vital role in international trade. They determine the value of one currency relative to another and influence a country's export competitiveness. A weaker domestic currency makes exports more attractive and competitive in foreign markets, potentially boosting exports and narrowing trade deficits. Conversely, a stronger currency may lead to lower export demand and wider trade deficits.Financial Globalization and Capital FlowsCapital mobility and investmentGlobalization has facilitated the flow of capital across borders. Financial markets are now interconnected, allowing investors to access a diverse range of assets worldwide. This capital mobility has both positive and negative implications for economies, as it can lead to increased investment opportunities and access to funding but also heightened financial volatility.Foreign direct investment (FDI) and economic growthForeign direct investment refers to investments made by individuals or corporations in businesses or assets located in foreign countries. FDI can have a significant impact on economic growth, as it brings in new technology, skills, and capital, stimulating domestic industries and creating job opportunities.Globalization's Impact on Macroeconomic PoliciesMonetary policy challengesGlobalization can pose challenges for central banks in managing monetary policy. Capital flows across borders can influence exchange rates and domestic interest rates, affecting inflation and economic stability. Central banks must carefully navigate these factors to achieve their policy objectives.Fiscal policy considerationsGlobalization can also impact fiscal policy decisions. Increased capital mobility may limit a country's ability to implement expansionary fiscal policies, as excessive government borrowing can lead to higher interest rates and capital flight.Challenges and ConcernsIncome distributionGlobalization's effects on income distribution can be complex. On one hand, globalization can create new economic opportunities, helping to uplift many individuals from poverty by providing access to global markets. This is particularly evident in developing countries where industries like technology and manufacturing have thrived due to globalization. However, in certain contexts, globalization can also worsen income inequality within countries. Highly skilled workers and those in industries benefiting from globalization often see significant income growth, while others may face stagnant or declining wages, exacerbating income disparities.Winners and losers of globalizationWhile some industries and regions may benefit from increased trade and investment, others may face challenges due to increased competition from foreign markets, potentially leading to job losses and a tougher environment for local businesses.Environmental ConcernsGlobalization can put pressure on natural resources and the environment due to increased production and transportation of goods. Addressing environmental challenges requires international cooperation and sustainable policies.Globalization and CryptocurrenciesCryptocurrencies, as decentralized digital assets, have the potential to further reshape the global economic landscape. They can transcend traditional borders, offering new opportunities for international trade and financial inclusion while offering alternatives to conventional monetary systems. The rise of cryptocurrencies and their interaction with global economic forces underscore the need for policymakers to adapt and establish frameworks that accommodate these innovative digital assets within the realm of international finance.Final ThoughtsGlobalization has fundamentally transformed the landscape of macroeconomics, creating an interconnected world where economic decisions in one country can have far-reaching consequences globally. The impact of globalization on trade balances, exchange rates, investment, and policies calls for prudent economic management and cooperation among nations. By understanding these interactions, policymakers and individuals can navigate the complexities of globalization and work towards fostering a more inclusive, sustainable, and prosperous global economy.Further ReadingMacroeconomics: Understanding the BasicsMacroeconomics: Fiscal and Monetary PoliciesPlaying by the Rules: Corporate Compliance at Binance

The President wants to chase bogeymen crypto traders with 87,000 new IRS agents while his son gets away with millions of dollars in evasion on foreign income.

🤡🌎

The United States is on the brink of reaching a staggering $33 trillion in national debt, according to the latest data from the U.S. Department of the Treasury’s Bureau of the Fiscal Service. In the past month, the U.S. Total Public Debt Outstanding has ballooned by $306 billion, settling at approximately $32.91 trillion. This rapid increase comes after the debt surpassed the $32 trillion mark on June 15th. Source: FiscalData What does the term “Total Public Debt Outstanding” signify, and why is it significant? Essentially, it refers to the cumulative debt that the U.S. federal government is obligated to repay to both external and internal lenders. This encompasses public debt, like U.S. Treasury bonds owned by private individuals, companies, and foreign nations, as well as intragovernmental holdings, which are securities held by various federal agencies. The magnitude of this public debt is vital because it has the potential to sway interest rates, alter the nation’s creditworthiness, and influence economic expansion. According to a report by The Daily Hodl, a recent survey conducted by the Peter G. Peterson Foundation reveals that the American public is increasingly anxious about the country’s fiscal stability. The study indicates that 91% of Democrats and 89% of Republicans are urging lawmakers to address the national debt and prevent future government shutdowns. The concern is not just partisan; it’s nationwide. The report went on to say that a significant majority of Americans are deeply worried about the economic repercussions of a potential government shutdown next month. Specifically, apparently, 70% of voters fear that Congress will fail to reach a budget agreement by the end of the current fiscal year on September 30th, thereby triggering a shutdown. Moreover, there is bipartisan support for taking decisive action to reduce the national debt. About 69% of Democrats and 67% of Republicans are in favor of establishing a bipartisan commission tasked with recommending comprehensive strategies for debt reduction. The urgency to address the debt issue is palpable among voters. Eighty percent want the national debt to be among the top three priorities for both the President and Congress. This sentiment is shared across party lines, with 71% of Democrats, 78% of independents, and 92% of Republicans agreeing. The Peter G. Peterson Foundation’s survey involved 1,013 registered voters across the nation and was conducted between August 21st and August 23rd. The poll has a margin of error of plus or minus 3.1%. On July 27, 2023, the Cato Institute, a libertarian public policy research organization, labeled the escalating U.S. debt as a matter of national security. The institute contends that persistent procrastination in enacting sound fiscal policies amid rising federal debt could set the stage for economic downturn and a possible fiscal emergency. The organization also cautions that a faltering economy, coupled with growing apprehensions among global bondholders regarding the U.S. government’s capability to manage its debt, could adversely affect America’s global reputation. They assert that the mounting federal debt in the U.S. has the potential to stifle private investment, diminish income levels, and elevate the risk of an abrupt fiscal catastrophe. Additionally, the Cato Institute underscores the immediate necessity for reforms in entitlement programs. Programs like Social Security, Medicare, Medicaid, and other needs-based initiatives consume half of the federal budget, while defense expenditure accounts for a fifth. To address this, the institute advocates for the establishment of a debt commission whose recommendations would automatically be enacted into law upon receiving presidential approval. The Cato Institute stresses that imprudent fiscal practices jeopardize both the economic and military prowess of the United States. They argue that by overhauling entitlement schemes and curtailing expenditures, lawmakers can avert the detrimental effects of soaring debt on America’s affluence and safety. The institute is confident that a well-structured debt commission could aid Congress in accomplishing these objectives. Featured Image by Mackenzie Marco via Unsplash