White House advisors renew push for 30% digital mining energy tax

” An excise tax on electrical energy usage by digital possession miners might reduce mining activity along with its associated other harms and environmental impacts,” the Department of Treasury wrote at the time. A May 2 statement from the White Houses Council of Economic Advisers (CEA) has brought the proposal back to light again, in efforts to justify the requirement for the new tax. #Bitcoin mining is excellent for the grid and great for the environment, yet Biden wants to tax it 30% and send this valuable industry into the hands of Russia.

” The DAME tax motivates firms to begin taking better account of the harms they impose on society,” it composed, adding: “While crypto assets are virtual, the energy intake connected to their computationally intensive production is really real and enforces very real expenses.” The blog site likewise referenced reports suggesting crypto mining has “negative spillovers” on the environment, quality of life, and electrical energy grids which pollution from electricity generation falls on low-income communities and neighborhoods of color, while rising the expense of electrical energy for consumers. Related: Biden spending plan proposes 30% tax on crypto mining electrical energy usageIt even recommends that crypto mining utilizing existing tidy power (such as hydropower) can still have a negative impact on the environment, by pushing other electrical energy users to “dirtier” sources of electrical power. Screenshot of CEAs thread on the ecological effect of crypto mining. Source: TwitterThe Twitter thread published by the Council of Economic Advisers has actually brought in prevalent criticism from the neighborhood, with some calling it “false information” and “propaganda” while one Twitter user argued such a tax would “just push Bitcoin mining to Russia & & other countries.” Magazine: Best and worst nations for crypto taxes– Plus crypto tax tips

The proposed crypto-mining tax was initially revealed on March 9 as part of President Bidens FY2024 spending plan and seeks to enforce a phased-in 30% excise tax on electrical energy used by crypto-miners. Today the CEA launched a blog highlighting a brand-new tax in the Presidents spending plan, the Digital Asset Mining Excise Tax (” DAME Tax”), a tax equivalent to 30 percent of the cost of the electrical power cryptominers utilize as soon as totally phased in.” Magazine: Best and worst countries for crypto taxes– Plus crypto tax pointers

The Biden administration has restored its push for a 30% Digital Asset Mining Energy (DAME) tax on cryptocurrency miners, part of efforts to minimize the markets supposed impact on environment change. The proposed crypto-mining tax was first announced on March 9 as part of President Bidens FY2024 budget plan and looks for to enforce a phased-in 30% excise tax on electrical energy utilized by crypto-miners. Today the CEA launched a blog site highlighting a brand-new tax in the Presidents budget plan, the Digital Asset Mining Excise Tax (” DAME Tax”), a tax equivalent to 30 percent of the cost of the electricity cryptominers utilize once totally phased in. 1/ https://t.co/944x0wVVB5— Council of Economic Advisers (@WhiteHouseCEA) May 2, 2023

Other Questions People Ask

What are the environmental concerns related to cryptocurrency mining that the White House advisors highlight?

The White House advisors emphasize that cryptocurrency mining has negative spillover effects on the environment, including increased pollution and strain on electrical grids. They point out that the energy-intensive nature of mining can disproportionately affect low-income communities and neighborhoods of color, as these areas often bear the brunt of pollution from electricity generation. The advisors suggest that even mining operations using clean energy sources can inadvertently push other users towards less environmentally friendly energy options.

What is the Digital Asset Mining Excise Tax (DAME Tax) proposed by the Biden administration?

The Digital Asset Mining Excise Tax (DAME Tax) is a proposed 30% tax on the electricity consumed by cryptocurrency miners, aimed at addressing environmental concerns associated with digital asset mining. Initially announced as part of President Biden's FY2024 budget, this tax is designed to be phased in gradually. The administration believes that this tax will help reduce the industry's environmental footprint while encouraging miners to adopt more sustainable practices.

What criticisms have emerged regarding the White House's proposal for a 30% digital mining energy tax?

The proposal for a 30% digital mining energy tax has faced significant criticism from various stakeholders within the cryptocurrency community. Many argue that it constitutes misinformation and could drive Bitcoin mining operations out of the U.S., leading to a loss of economic opportunities. Critics also contend that such a tax may not effectively address environmental concerns and could instead push miners to countries with less stringent regulations.