[NEWS] Biden budget proposes 30% tax on crypto mining electricity usage

[thecodebear]

And this clown was supposed to be a crypto friendly president unlike Trump.  Trump never liked crypto and he expressed his opinions very clearly but he never tried to rob us like that. This is a direct move to eliminate crypto mining. Who in the right mind would mine crypto in the US now? China banned crypto mining and US is going to put a tax on it which is a ban in disguise. Supporting this guy as a president was a huge mistake and now is the payback time.

Maybe you should look at what Trump proposed regarding cryptocurrencies at the very end of his mandate, and Biden suspended all of that when he took office. In addition, Trump could not be good or bad towards BTC miners, because they became a "problem" a little later, or maybe at the time when he encouraged angry mobs to attack government institutions and kill innocent people.

If by any chance you are a US voter, then you will have the opportunity to re-elect Trump, and just for information, this bank that failed a few days ago might not have failed if Trump had not abolished the mandatory checks that existed before. The policy implemented by the US is always more or less the same, the only question is who they appoint as president - someone with dark skin, someone who openly supports violence, or someone who at times does not even know where he is or that he is president at all.

Yeah let's not go supporting idiot lunatic sociapath clowns like Trump or any republican just because Biden doesn't know a damn thing about Bitcoin and thinks its bad for the environment.

Lack of Bitcoin education is not a republican or a democrat thing, it's not even a politician thing at all, its a widespread public thing. Hardly anyone is educated on Bitcoin. Trump's admin tried to force through some insane reckless anti-crypto stuff just before they were kicked out of office, and luckily Biden put a stop to that when he took office. But that doesn't mean Biden is Bitcoin-friendly. He probably just put a stop to it because Biden knew, just like every other sane American knew, that Trump's psychotic reign of terror needed to end and so anything the Trump admin was trying to rush through before that criminal left office should be stopped. Just like 99% of the people out there, Biden doesn't know anything about Bitcoin beyond what he reads in headlines and the headlines say Bitcoin is terrible for the environment. Until we get people who politicians actually listen to educating them on Bitcoin and Bitcoin mining we should expect govt to become Bitcoin friendly. The only reason there are even a handful of corrupt douchebag Republicans who support Bitcoin is because Bitcoin is non-government money and they're all obsessed anti-govt loons who don't believe in any one should have power expect themselves.

[FahriZah]

I Think Previously Have 10% Tax In Crypto Mining Electricity Bill But Now Thinking That Jumping 10 Percentage To 30 Percentage It’s Very Difficult For Crypto Currency Miner So I Think This Is Not Good For Crypto Currency Miner And If Previous 10% Tax Than Everything Ok.

[yazher]

I find it funny seeing so many people think that this has already become a law already. There's a huge difference between proposal and law. Crazy crypto related proposals are suggested all the time, but very few become laws.
This particular proposal sounds like one of those proposals which will get swept under the rug pretty quickly since US senators stand to lose more thanks to it in the long-term.
Stop jumping to conclusions and think for a second. Just my 2 cents.

This is just maybe a proposal but those who are hostile towards bitcoins and cryptocurrency will use this opportunity to cast doubt towards the people and will gonna confuse them with it in their headlines.

I wonder why they always make such kinds of proposals when they are getting something good from these miners and they are getting juicy money from them. They even forgot their real problems which are the important things they need to work on with to improve their economy and their country.

[tabas]

IIRC, there was this statement from him just after that he's got elected as the POTUS that he'll do something important related to crypto. But since there are other things and concerns that he needs to attend first, it was forgotten. And if this was the thing that he's telling, he's just pushing away the miners that will contribute to their economy. AFAIK, each state does have a different ruling and that's why one state like if my memory serves right, in Texas they're planning to mine so that means if this proposal will pass on and becomes a law then that's a huge cut from the government itself on that state.

[alexkut987]

It's important to note that the Biden administration has not officially announced any plans to push out Bitcoin mining through tax increases. However, it is true that some lawmakers in the US have proposed tax reforms that would impact cryptocurrency mining operations.

[Mr. Magkaisa]

   -  Is this proposal that Biden said has been approved? It's like he doesn't know what he's talking about related to cryptocurrency.
It's good that Trump is a bit open minded to bitcoin or crypto at least.

It's a huge burden on crypto miners when it happens to be approved in their country, it's a big pain to be honest. Maybe that's a blessing when Fiat doesn't back their dollar with gold. So it is recovered from the tax.

[alexkut987]

While it is true that the policies and actions of political leaders can have an impact on the cryptocurrency industry, it is also important to consider the broader context in which these policies are being made. The regulation of cryptocurrencies is an ongoing process, and there are a range of views and perspectives on how best to balance innovation and growth with security and consumer protection.

[justdimin]

   -  Is this proposal that Biden said has been approved? It's like he doesn't know what he's talking about related to cryptocurrency.
It's good that Trump is a bit open minded to bitcoin or crypto at least.

It's a huge burden on crypto miners when it happens to be approved in their country, it's a big pain to be honest. Maybe that's a blessing when Fiat doesn't back their dollar with gold. So it is recovered from the tax.

I would guess that it is more about the government and the approach, when the branches of government such as SEC and FED suggests something, it doesn't matter who the president is, they can do it because they have the independent power to do so.

However, when Biden was offered this advise, he took that as a good idea and he promoted it as well, doesn't mean it's in the law yet, there isn't regarding this yet, no rules or laws or anything. However, when both sides agree on something, which is very very rare, then they accept it. I fear that bitcoin is not liked by politicians and this should not be a shock to anyone that they will put more and more taxes on it.

[bbc.reporter]

News update. The Biden administration released a report trying to argue on their 30% cryptomining tax.

https://www.whitehouse.gov/cea/written-materials/2023/05/02/cost-of-cryptomining-dame-tax/

This is very much similar to what the American government has been doing to other types of industries where they use subsidies and taxation to manipulate their growth or their decline. I speculate that miners will begin their exit from America on 2024 and 2025 and go to South America and Asia where they will be welcomed. El Salvador will certainly be one of those places.



A proposed 30% excise tax on cryptocurrency mining firms was the focus of a report released by the White House on Tuesday, in which the administration reiterated its stance that pinching miners’ profits is in the best interest of American communities and the environment.

“Firms do not have to pay for the full cost they impose on others,” the report states, adding that the proposed tax “encourages firms to start taking better account of the harms they impose on society.”

Under the official name of the Digital Asset Mining Energy (DAME) tax, it applies equally to digital asset miners that earn income by validating transactions on proof-of-work networks like Bitcoin and proof-of-stake networks like Ethereum, despite having vastly different levels of energy consumption.

Source https://decrypt.co/138832/white-house-report-30-percent-crypto-mining-tax

[crypticj]

I'm surprised. I thought Biding would be the first person to attack crypto. I guess he wants to win out votes boys.

I think, in general, the crypto policy in the US gonna get better and better because they probably understand that if they attack the crypto community than they will get a very, very angry minority that will vote them out. And crypto enthusiasts also can move to other countries because of the regulations and spend their crypto there. I think they don't want to miss on out crypto money so everything would be fine.

[MusaMohamed]

News update. The Biden administration released a report trying to argue on their 30% cryptomining tax.

https://www.whitehouse.gov/cea/written-materials/2023/05/02/cost-of-cryptomining-dame-tax/

This is very much similar to what the American government has been doing to other types of industries where they use subsidies and taxation to manipulate their growth or their decline.

Are you sure that they charge same high tax 30% on other industries like cloud storage, AI and more?

The tax on cryptocurrency mining is abnormally high in my opinion and this proposal shows that how the government is skewed on regulating Bitcoin and cryptocurrency. They are subjectively regulating this new industry and are ready to break their own terms, laws, bills just to constrain this industry as much as possible.

So far I don't see they provide anything that is convincing enough with me for their proposed 30% tax on cryptocurrency mining. It's a joke and non sense proposal. I am doubtful that it will be approved by the Congress.

[avikz]

So the US attack on cryptocurrency continues! This clearly show the mentality of the government towards cryptos. In my country, government has imposed 30% tax without the chance of loss offset. So it's very clear that they want to discourage the citizens from crypto matters. US is also moving that way.

Thankfully it's still a proposal but won't take time to become a law because of FED's lobby. Well done US. Many other small countries will surely benefit from such law. Bhutan has planned for a 500 million USD fund to initiate crypto mining in their country. Just FYI.

[bbc.reporter]

It appears that we might have some good news on the mining side of bitcoin. According to this article, there was a deal that a vote on lifting the debt ceiling would only occur if the Biden administration agrees to some of the terms from the Republicans in congress. One of these deals included was the removal of the proposed 30% tax on bitcoin miners.



As the details of the agreement reached between President Joe Biden and House Speaker Kevin McCarthy on the U.S. debt ceiling were made public Sunday, one notable part of the deal appears to have blocked some taxes proposed by the Biden administration, including the Digital Asset Mining Energy (DAME) excise tax.

Source https://finance.yahoo.com/news/us-debt-ceiling-deal-blocks-110108229.html

[pooya87]

El Salvador will certainly be one of those places.

That's an interesting point. With the adoption of bitcoin as legal tender there should be a decent increase in mining operations in El Salvador over long term, although there is very little news or data about such operations there which is surprising. There definitely is enough potential with renewable energy (geothermal, hydro and solar) that they use too. Not to mention growth of the mining industry will help build more infrastructure for electricity production in the country.

This could attract miners with or without the restrictions in US.

[NotATether]

With all this debt ceiling constraints coming up, in particular the ones in the deal, does anyone think it's possible for more taxes of different kinds to be planted on USA residents in order to allow for more (reckless) government spending?

I'm pretty sure that if the USA is tight on cash then most politicians are not going to object to bills that give more (non-borrowed) cash to the government, as the House voting on the debt ceiling bill showed us.

[KiaKia]

The people of the United States of America are the only ones that can turn this mess around for the greater good, there are now few presidential candidates that have an interest in crypto and I look one up which looks like he understands what Bitcoin and Decentralized mean, if the people vote for such candidate the US will benefit a lot from Bitcoin and crypto in the coming years, as for Biden, I believe he understand too less about Bitcoin and he don't know what to do about it than making Bitcoin miners to have a hell time running their miners every day.

[crypticj]

Oh boy, guess miners will move to Kazakhstan now and Bitcoin will probably dip even lower.

And I don't see a reason why they won't accept this proposal. The government hates crypto and miners are those who make crypto work.

[pixie85]

Oh boy, guess miners will move to Kazakhstan now and Bitcoin will probably dip even lower.

And I don't see a reason why they won't accept this proposal. The government hates crypto and miners are those who make crypto work.

Calm down and don't panic. The proposal was dropped, there won't be any 30% mining tax in the US!

In a favorable turn of events for cryptocurrency miners in the US, the proposed tax on their electricity usage has been dropped according to Republican congressman Warren Davidson.
After lengthy negotiations, an agreement was reached between President Joe Biden and House Speaker Kevin McCarthy to raise the country’s debt ceiling until January 2025, extending past the next presidential election.

https://blockworks.co/news/crypto-mining-tax-debt-ceiling

The tax was outrageous in the first place and meant to destroy mining in the US. We all know that there can be acceptable and unacceptable taxes. Miners already pay income tax on their profits, so adding another large tax on top of it would force them out of business and would be unjust towards miners. Other businesses don't have to pay additional 30% in order to operate.

Allowing a data center to work without a 30% tax and taxing the same data center for switching from storage to mining is stupid.

[beerlover]

I think the taxes was a bit of a way to hurt Texas the most and as we all know that's a republican state based on energy and these companies were getting cheaper electricity there compared to any other state give or take. So putting a tax would have hurt them, and that was a great negotiation card to play. Give me the debt ceiling I need and then you can get the tax dropped and start earning again. I feel like both parties played their hands right and they got away with wins together.

I wish every political drama was resolved like this, just get something you want and give something they want and keep doing that, it's the compromise solution that we all need and could make everyone better, instead of what we usually have, lose something of yourself in return of taking something away from the other side.

[Forever101]

Here are some situation that have the capacity to crippling the growth of bitcoins and it is better for core developers to strategies counter attack every  future movement that will likely impede the growth of bitcoins by developing a more sophisticated Technology that can cut off the government rule over bitcoins. I once post something about the unforseen and likely occurence, some argued that nothing can happen to bitcoins. Since every government wants to be control of the people their actions may not likely be in support of bitcoins