Crypto Mining Tax Introduced by The Biden Administration

Crypto mining usually needs high electricity for mining new cryptocurrencies. As cryptocurrencies are getting famous day-by-day and for generating more cryptocurrencies, mining is mandatory. Due to the electricity consumption, mining crypto has gained the attention of the U.S. government and they proposed a crypto mining tax.

Crypto Mining Tax Proposed by White House

The Biden Administration has proposed a tax on the electricity used by cryptocurrency mining operations. According to Yahoo News, the U.S. government is working to impose a 30% tax on the electricity used by cryptocurrency mining operations. This proposal is a part of the U.S. government’s budget for the fiscal year of 2024.

They have mentioned about the crypto mining tax in its official blog post on the website of White House. The administration has formally introduced the Digital Asset Mining Energy (DAME) excise tax in a blog post. According to its explanation the Biden Administration wants to tax crypto mining companies as the companies aren’t paying for the “full cost they impose on others.” Also, the working of crypto mining companies includes environmental pollution and high energy prices.

Cited The Efficacies of Crypto Mining on Environment

Keeping an eye on the after-effects of crypto mining operations by mining companies, White House added its concerns. The White House stated in the blog post that mining cryptocurrencies have “negative spillovers on the environment.”

The pollution generated by these companies “falls disproportionately on low-income neighborhoods and communities of color.” It further continued that the mining operations “often volatile power consumption” can increase electricity prices for the rest of the people. This can also cause service interruptions for nearby people.

The local power companies are taking a risk if they look for an upgradation of its equipment for providing more stable services. It must be noted that miners can easily switch their location, and can even go abroad.

An American environmental lawyer, Robert F. Kennedy Jr, seemed quite unhappy from this decision made by the Biden Administration. In his tweet, he wrote that cryptocurrencies  and the relevant crypto technologies are “a major innovation engine.” He pointed out that “it is a mistake for the U.S. government to hobble the industry and drive innovation elsewhere.”

RFK Jr also cited that “Biden’s proposed 30% tax on cryptocurrency mining is a bad idea.” In a long-tail twitter thread, he continued his objection related to crypto mining tex. He agrees that energy use is a “concern” but mining Bitcoin also uses the same energy as video games. Still no one is thinking about banning it.

From his tweet, it is quite clear that the Democratic presidential candidate, RFK Jr is not supporting the White House effort to establish a % tax for crypto mining in the country.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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