USA: White House wants to levy penalty tax on crypto mining

3 years ago

According to the advice of the White House economic advisors, President Joe Biden wants to impose a punitive tax on crypto mining activities in the USA because they “harm society”. The post states that a mining company was sued to pay 30 percent of its energy costs in taxes. This case becomes the kind of punishment that could threaten the profits of companies in the industry.

USA: White House wants to impose a penalty tax on crypto mining

The CEA presented the tax under the name “Digital Asset Mining Energy Tax (DAME)”. Crypto mining companies will not be held accountable for pollution, high energy prices and the impact of increased greenhouse gas emissions at this time, the CEA argues. In contrast, other energy-intensive industries are exempt from the tax. Because, according to the CEA, they “provide local and national economic benefits that crypto mining does not.”

Did you know : Almost Nobody Pays Crypto Taxes?

The Biden administration first proposed the consumption tax in a document released by the US Treasury Department on Thursday (March 9). The “Green Book” document sets out the government’s proposals and priorities for increasing revenue next year. However, such proposals are typically not passed as Congress decides the country’s spending plans.

Republicans resist punishing the crypto sector

The council’s report says the tax could generate as much as $3.5 billion in revenue over the next decade. The largest US mining companies include Riot Platforms (RIOT), Marathon Digital (RIOT), Cipher Mining (CIFR), Greenidge Generation (GREE), BitDeer (BTDR) and CleanSpark (CLSK), among others.

At the same time, the government’s Council of Economic Advisers released a report in March expressing concerns about the sector. The report emphasized the potential economic impact of mining. And pointed out that even mining companies using clean energy are driving up overall energy costs. Republicans, on the other hand, are resisting efforts by regulators and the administration to punish the crypto sector. It is therefore quite possible that Parliament will not approve these taxes.