Biden resurrects 30% crypto mining tax in new budget proposal

[larry_vw_1955]

Yesterday I wanted to buy something from a shop that was accepting bitcoin payments and have bought many things from them via Bitcoin in the last year.

very good! that type of thing was what was supposed to make bitcoin be mainstream.

Yesterday, I didn't see Bitcoin as a payment option and when I messaged the shop owner, he told me that he hated paying the capital gains taxes on Bitcoins.

what a hassle. who would want to take payments in bitcoin if they have to do that? so you can't blame him. what a huge pain to have to worry about paying capital gains tax on a sale when you receive bitcoin as payment and then sell it to actually get your money. what a disaster. 

[davis196]

https://cointelegraph.com/news/crypto-mining-tax-united-states-budget

United States President Joe Biden has revived the idea of a 30% tax on electricity used by crypto miners in his budget proposal for 2025.

Lets just admit it. Biden is never going to try and stop taxing people involved in bitcoin.   Anyone that uses bitcoin here in the usa is directly accountable to the IRS even more than someone that owns a room full of firearms. enough said.

What if the electricity is "green"(produced by solar panels and wind turbines)? Will it still be taxed 30%? If the answer is yes, then this is clearly a discrimination tax over the cryptocurrency miners. And by the way, Biden isn't proposing anything. His team of economists is making the proposals. At this point I don't know if Biden even remembers what he ate for breakfast today. Anyway, I don't believe that this proposal will be approved in the Congress, where the Republicans have a majority, but who knows. Some republicans are crypto haters, so they might accept the proposal.

[retreat]

That's America for you. The US government will tax everything businesses do there, on the grounds that it is to maintain sustainability and excessive energy use. This might be burdensome for Bitcoin miners there and it is possible that they will move their mining location to a country that is more friendly to their operations.
Luckily in my country the government does not impose such high taxes on Bitcoin mining businesses, on the contrary the government gives them tax discounts to keep their operations continuing and keep the cryptocurrency ecosystem in my country further developing.

[MusaMohamed]

In any case, there is a good chance that more and more of such negative news would start coming out of United States in the following years. From increased taxes on miners, traders, crypto related businesses, etc. all the way to any individual that has ever thought about a cryptocurrency.
The more Bitcoin grows, they more they'll fight it.

Governments are same in all nations and they want to charge as much tax as possible from their citizens. Democracy or dictatorship, they will try to get more money from citizens.

Differences in politics, systematic foundations can give governments easier or harder chance to do what they want but basically we can not trust politicians in any country. They easily promise but usually don't fulfill their promise after all.

With the US. debt clock that increases sharply and the loss of purchasing power of US. dollar, they have to go seriously with citizen tax.
https://www.usdebtclock.org/world-debt-clock.html
Purchasing power of the US. dollar over time

[thecodebear]

https://cointelegraph.com/news/crypto-mining-tax-united-states-budget

United States President Joe Biden has revived the idea of a 30% tax on electricity used by crypto miners in his budget proposal for 2025.

Lets just admit it. Biden is never going to try and stop taxing people involved in bitcoin.   Anyone that uses bitcoin here in the usa is directly accountable to the IRS even more than someone that owns a room full of firearms. enough said.

Did you think otherwise? Politicians generally don't know anything about Bitcoin. Biden already came up with this idea before, why would you think he suddenly got educated on Bitcoin.

Anyway Congress does budgets, President just gives his budget proposal. Seeing as how an absurd and arbitrary mining tax would be a very very small item in the budget, there is no worry about this actually becoming law. It'll easily get taken out.

[legiteum]

There are so, so many things wrong with this graphic:

1. It cherry-picks very specific consumer goods, which are subject to market volatility--and the items it picks are really bad examples since they are simple products. A better example is something complicated like an new car. Plug that into the graph above--and then account for things like the longevity and quality of the good--and your graph gets much flatter.

2. It does not compare the average income of workers. Back when a Hershey bar only cost ten cents, the average worker only made two dollars a day. Today the average wage in the USA is over $250 per day.

But even if you still use this graph, you would note that in the last 40 years, the US dollar has been amazingly stable.

[philipma1957]

Joe Biden ATH in April 2021
Joe Biden ATH in Nov. 2021
Joe Biden ATH in Mar. 2024

Donald Trump ended like kind trades of all crypto in fact all like kind trades of any kind except wait for it real estate. Which directly benefits the Trump business of real estate.

So before people attack biden and favor trump read the above and realize trump is likely to be shittier than biden.

I have been around a bit I am 67 and I can tell you no president should be older than me fuck both of them.

[someone703]

For the big mining companies, it's not a huge deal. They've got special deals with the power company, kind of like a senior discount. They can also game the system a bit by using those slow times to wipe away their taxes like magic. So, for them, it's more of a minor annoyance.

But for the little guys, the ones mining from their basements? This tax stings. It might even force them to shut down shop. Now, that might sound bad for Bitcoin, but here's the twist: fewer miners means it's harder to find new Bitcoins. Kinda like fewer miners digging for gold means less gold gets unearthed. This scarcity could actually drive the price of Bitcoin up – like a weird game of musical chairs.

The real eyebrow-raiser is the whole "reporting your income" thing. This tax plan might mean power companies start acting like the energy police, looking for houses that are using way too much juice. It's like when they used to check your electricity bill to see if you were growing weed in your basement!

[Antotena]

https://cointelegraph.com/news/crypto-mining-tax-united-states-budget

United States President Joe Biden has revived the idea of a 30% tax on electricity used by crypto miners in his budget proposal for 2025.

Lets just admit it. Biden is never going to try and stop taxing people involved in bitcoin.   Anyone that uses bitcoin here in the usa is directly accountable to the IRS even more than someone that owns a room full of firearms. enough said.

I know there has been a great internal interest in the next USA coming elections but I think we have to let these guys be who they are and not involve them into crypto affairs. The past few days, they infiltrate into the Bitcoin saying some good stuffs about the Bitcoin and that's because they want the Bitcoin community to support their candidates but after the election, they ditch everyone and set up unfavorable policy that will scare the investors from Bitcoin but to come back their own bonds and stock market.

I might not be too familiar with the system of the US but even tax from othwr investment is always heavy, also in between 30% or lower depending on the size of your investment. The US system is known for heavy task since the immemorial, so I don't think if this should be a propaganda or anything affirmative for the government. As long as they don't ban Bitcoin, I don't have a problem with them.

[philipma1957]

most usa mining ⛏️ is large farms. not people doing 25kwatt to 150kwatt

small people with one miner may go under the wire.

[Wakate]

https://cointelegraph.com/news/crypto-mining-tax-united-states-budget

United States President Joe Biden has revived the idea of a 30% tax on electricity used by crypto miners in his budget proposal for 2025.

Lets just admit it. Biden is never going to try and stop taxing people involved in bitcoin.   Anyone that uses bitcoin here in the usa is directly accountable to the IRS even more than someone that owns a room full of firearms. enough said.

Looking at this, is like the Biden government has never supported the idea of Bitcoin mining and investment. This is atr people that don't want people to get rich though Bitcoin investment that is why they are always ready to bring tax that would make people to stay away from Bitcoin mining or trading. It is obvious that the government has no good plan for all bitcoiners in the United States. ID the government wants to collect 30% tax on electricity, it means that the miners would have not reasonable profits from the mining couples with how expensive the tools for Bitcoin mining could be and other things that are involved.

[legiteum]

Looking at this, is like the Biden government has never supported the idea of Bitcoin mining and investment.

Before Biden won the election in November of 2020, Bitcoin was at about $15,000.

Bitcoin is over $68,000 today.

Biden, in short, has been been coincidental with a 450% appreciation of Bitcoin.

Unlike Biden, Trump needs hundreds of millions of dollars to pay for lawsuits, and has a business on the verge of collapse, meaning he could potentially need billions. Nobody should trust somebody like that to not try to manipulate crypto markets in his own favor to the detriment of other coins like Bitcoin. One word from Trump could send Bitcoin into the toilet and he knows that. And if that meant TrumpCoin would do better, then that's exactly what he would do.

Personally, I'm voting for stable government in 2024. That's the best thing for the digital currency markets.

[stompix]

Does anyone really think this is Biden's idea?

With the number of laws and regulations that happen every day it's highly possible he isn't even aware of the details, no president alive unless he governs over 100 people would be able to keep up with all those, it just gets passed from commission to commission to agency when it finally makes it to a higher office and then it's a matter of who's backing it.

Luckily in my country the government does not impose such high taxes on Bitcoin mining businesses, on the contrary the government gives them tax discounts to keep their operations continuing and keep the cryptocurrency ecosystem in my country further developing.

The first time I heard such a thing, I saw you're from Indonesia and I' 've never seen news of any large farm there, so what are those discounts?
Because a 30% tax on 2.5 cents per kwh is still cheaper than a discount of 50% from 8 cents.

This is atr people that don't want people to get rich though Bitcoin investment that is why they are always ready to bring tax that would make people to stay away from Bitcoin mining or trading.

So they don't want people to get rich and have money and to tax them but instead, they want the masses to be poor so they have no taxes to collect and need to pay them all kinds of social welfare programs from the government budget. And you think that's their plan?  

[larry_vw_1955]

What if the electricity is "green"(produced by solar panels and wind turbines)?

that wouldn't matter at all to biden.

Will it still be taxed 30%?

you bet!

If implemented, crypto mining companies must report the amount and type of electricity they use. In addition, firms must report the value of the electricity used if they purchase it externally. Meanwhile, Miners who lease computational capacity would be mandated to report the value of the electricity of the company that leased them the capacity. The value would then serve as the tax base.

The tax would also apply to crypto mining firms that generate their own electricity. Companies that produce or acquire power “off-grid” would also need to pay a 30% tax on the estimated costs of their electricity bills.

https://www.fxstreet.com/cryptocurrencies/news/biden-resurrects-30-crypto-mining-tax-in-new-budget-proposal-202403121228

If the answer is yes, then this is clearly a discrimination tax over the cryptocurrency miners. And by the way, Biden isn't proposing anything. His team of economists is making the proposals. At this point I don't know if Biden even remembers what he ate for breakfast today.

yeah we all know he is not the one that is coming up with these things but he agrees to all of them so he's just as bad as the people coming up with them. 

Anyway, I don't believe that this proposal will be approved in the Congress, where the Republicans have a majority, but who knows. Some republicans are crypto haters, so they might accept the proposal.

this is their second time trying to push it into some type of law. it seems like someone is determined come hell or high water to kill bitcoin mining in the usa.

So they don't want people to get rich and have money and to tax them but instead, they want the masses to be poor so they have no taxes to collect and need to pay them all kinds of social welfare programs from the government budget.

the federal minimum wage is only about $7 per hour so yeah. they do want them to be poor. if they didn't they would raise that to what most cities have had to do anyway. the government dropped the ball.

And you think that's their plan? 

i think biden's plan is to redistribute the wealth by taking it from higher income earners and giving it out to people of low income. that's not so bad but when you invite millions of people to just come across the border, that makes it kind of hard to accept. but that's what's happening.   

that's why we see them trying to tax anything that moves. so they can give out more money to people that really need it.

The real eyebrow-raiser is the whole "reporting your income" thing.

I agree! It's like I said, gun owners have more privacy than bitcoin miners will if this thing passes. Even people that own semi-automatic rifles like the AR-15 killing machine.

This tax plan might mean power companies start acting like the energy police, looking for houses that are using way too much juice. It's like when they used to check your electricity bill to see if you were growing weed in your basement!

that goes without saying if this thing passes.



it would seem like the only way out of this situation is to move to a proof of stake model because they can always track you down by your power useage.

https://www.forbes.com/sites/jamesbroughel/2023/03/15/biden-shouldnt-tax-cryptos-electricity-use/?sh=21aab6306418

The proposed tax would also likely favor proof of stake (PoS) models of transaction verification over proof of work (PoW) models. PoW is the method currently used by Bitcoin; as noted, it involves solving complex mathematical problems. PoS, on the other hand, obliges users to stake their own cryptocurrency as collateral to verify transactions. The PoS method requires significantly less energy than the PoW method and is therefore—at least for now—more environmentally friendly.



[moderator's note: consecutive posts merged]

[Poker Player]

I am correcting you:

Lets just admit it. Biden is never going to try and stop taxing people.

Socialist policies consist of taking away what they have from the most productive people to give crumbs to the non-productive people and make more and more of society dependent on the state. Argentina is a good example of this. From having the highest GDP in the world to being a disaster of a country for many years.

Looking at this, is like the Biden government has never supported the idea of Bitcoin mining and investment. 

Of course. How is he going to support an asset that is used in part as currency and that he cannot control. An asset that gives people freedom? No way. There is nothing they hate more. Free people independent of the state.

[stompix]

it would seem like the only way out of this situation is to move to a proof of stake model because they can always track you down by your power useage.

And what, you think they can't track you if you go PoS?

Furthermore, it would take just a warrant and two major staking pools taken over and you've just granted one authority control over the coin, at least with farms they will need to keep them staffed, consuming power, replace gear, make somehow impossible for the others to get more gear so they can overpower the controlled one, with ETH for example you just go after lido and you have 30% of the staking eth, raid coinbase and kraken and you are close in for a majority!

If an ETH ETF is approved you might see BlackRock owning more than enouhg to control it alone completely, what solution are you going to have then?

[cryptosize]

This isn't a Biden tax, it's a deep state tax to make BTC mining less competitive in the US.

Sleepy Joe doesn't even remember the breakfast he ate today!

There are so, so many things wrong with this graphic:

1. It cherry-picks very specific consumer goods, which are subject to market volatility--and the items it picks are really bad examples since they are simple products. A better example is something complicated like an new car. Plug that into the graph above--and then account for things like the longevity and quality of the good--and your graph gets much flatter.

2. It does not compare the average income of workers. Back when a Hershey bar only cost ten cents, the average worker only made two dollars a day. Today the average wage in the USA is over $250 per day.

But even if you still use this graph, you would note that in the last 40 years, the US dollar has been amazingly stable.

Hmmm, not really:

https://wtfhappenedin1971.com/

[moderator's note: consecutive posts merged]

[legiteum]

Hmmm, not really:

https://wtfhappenedin1971.com/

1971 was 53 years ago.

That you have to go back that far sorta makes my point for me…

[cryptosize]

Hmmm, not really:

https://wtfhappenedin1971.com/

1971 was 53 years ago.

That you have to go back that far sorta makes my point for me…

Didn't expect much from a Biden fan. Your perception of reality is roughly the same.

[legiteum]

Hmmm, not really:

https://wtfhappenedin1971.com/

1971 was 53 years ago.

That you have to go back that far sorta makes my point for me…

Didn't expect much from a Biden fan. Your perception of reality is roughly the same.

Interesting. What is 2024-1971 using Trump Math^TM?

Just curious…