White House Proposes Bitcoin Mining Tax

The White House has publicly proposed a 30% tax on the electricity used to mine Bitcoin. In particular, the Biden Administration has pushed for the tax in its most recent budget for the fiscal year 2024. 

The tax plan was explained in a blog post on the White House website. The Digital Asset Mining Energy (DAME) Excise Tax project will be implemented over the next three years. Then, they focused on how much energy crypto mining uses and how it affects the Earth.

White House Proposes 30% Tax on Bitcoin, Crypto Mining Electricity

The White House wants to put a 30% tax on the power used to mine Bitcoin. A post from the administration called the idea “making crypto miners pay for the costs they impose on others.” The tax plan will also be part of the administration’s budget for 2024.

The DAME tax, according to the Biden Administration, is a way to deal with “both long-standing national challenges and new risks” related to digital assets. Also mentioned was the need to fight “the economic and environmental costs of how crypto assets are mined now.”

The plan makes it clear how the government feels about crypto mining. After that, they looked at how it affected the environment and energy. The government also said that the DAME tax “encourages companies to think more about the harms they cause to society.” 

The news release talked about the good things about the business. “Along with these known costs and risks, crypto mining does not create the local and national economic benefits that are usually linked to businesses that use the same amount of energy,” the article says. Noting a deep-down doubt about what the practice is for.

On the other hand, several US states have passed security bills for crypto mining. Then introduce a situation with different points of view. We will know how the plan is received when time passes. But the tax will go into effect gradually at the beginning of the next fiscal year.