Biden’s 30% tax is not welcomed by crypto industry

[Cryptocrit]

https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhnzTeaY2T5H6zfKCOJZ8xl3TUWUsBgq278_skFPCbVRH0DTasLaWG7VyV_JGtUfas21lrZv0IO63KTT2ahCSwdy2XfS14KDL5NGV4sF9Ime4sfJv1v8aXaKlec9KXHapNVCdbQamKj56nEiJb1_pa9MlXvSBdcNenwf5xNJMbsQq0nqQ7yRDwxPsmBtn-n/w640-h638/Screenshot_16.jpg

Biden administration proposed DAME tax on Tuesday, which would charge Bitcoin miners a 30 % tax on the cost of the electricity, but crypto industries are not happy with this proposal, have shared negative opinion against this decision.

The Bitcoin mining community is facing a new challenge that could change its future in the United States. The White House has proposed a tax called the Digital Asset Mining Energy (DAME) tax, which would make it more expensive for companies to mine Bitcoin and other digital currencies.

On Tuesday, this proposal was brought back into the spotlight as part of the government’s budget plan for the next fiscal year. The DAME tax would charge Bitcoin miners a 30% tax on the cost of the electricity they use. This tax would be introduced gradually: starting at 10% in the first year, then increasing to 20% in the second year, and finally reaching 30% in the third year.

Read full article here
https://www.cryptocrit.xyz/2024/04/DAME-tax-in-USA.html

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[franky1]

cryptocrits "read full article" website has lots of pop-ups that want you to download crap... i dont recommend visiting his link

advice to cryptocrit: remove the crappy stuff your site tries to get people to download

[Eternad]

Biden administration proposed DAME tax on Tuesday, which would charge Bitcoin miners a 30 % tax on the cost of the electricity, but crypto industries are not happy with this proposal, have shared negative opinion against this decision.

Tell me who’s miner will be happy for a 30% tax exclusive for them while every business on the world consume same energy that they are using to operate a mining rig. Unless a mining rig use different electricity that has severe effects that harm the environment.

This action is the way of government to fight the spread of Bitcoin since they can’t regulate it so they are just imposing unjust tax to slow down miners.

In my country, Tax is near to 30% for capital gains greater than 40K USD if user will declare their crypto assets to our tax agency. Our government is against crypto in general that’s why they are charging us unfair taxes even though they can’t execute it properly.

[avikz]

Biden administration proposed DAME tax on Tuesday, which would charge Bitcoin miners a 30 % tax on the cost of the electricity, but crypto industries are not happy with this proposal, have shared negative opinion against this decision.

The Bitcoin mining community is facing a new challenge that could change its future in the United States. The White House has proposed a tax called the Digital Asset Mining Energy (DAME) tax, which would make it more expensive for companies to mine Bitcoin and other digital currencies.

On Tuesday, this proposal was brought back into the spotlight as part of the government’s budget plan for the next fiscal year. The DAME tax would charge Bitcoin miners a 30% tax on the cost of the electricity they use. This tax would be introduced gradually: starting at 10% in the first year, then increasing to 20% in the second year, and finally reaching 30% in the third year.

Read full article here
https://www.cryptocrit.xyz/2024/04/DAME-tax-in-USA.html

Well, it shows the clear intention of the US government on how they want to handle the crypto tax matter. 30% tax on the electricity consumption is outrageous. That will increase their production cost and if the market price doesn't support this increased production cost, they may very well go out of business. Probably that's what US government wants! Such kind of penalty tax can surely encourage large scale miners to move out of US and move to a crypto friendly country.

US is showing all signs to become a authoritarian government, especially in crypto related matters!

[Upgrade00]

This has been passed around since last year during the peak of the Fud against Bitcoin mining. At the time there was the talk about how mining is taking away energy that should have been used in people's homes. The tax was more of a response to show the government is working to protect the interest of the people while achieving their goal of frustrating miners.

[The Cryptovator]

Honestly, miners should leave the USA and move to any other country where electricity bills are very low. Otherwise, they should use renewable energy to mine Bitcoin. Who wants to pay an overcharge? So definitely, miners won't welcome this decision. Rather than argue with the Biden administration, miners should find other places where crypto is legal and the cost is also lower. The US will always try to take advantage of anything related to crypto. A large number of citizens got involved with crypto. So they want to control everything and charge high. 

[GbitG]

Honestly, miners should leave the USA and move to any other country where electricity bills are very low. Otherwise, they should use renewable energy to mine Bitcoin. Who wants to pay an overcharge? So definitely, miners won't welcome this decision. Rather than argue with the Biden administration, miners should find other places where crypto is legal and the cost is also lower. The US will always try to take advantage of anything related to crypto. A large number of citizens got involved with crypto. So they want to control everything and charge high. 

Yes, indeed, if the tax remains the same, then all the miners will be exited from the US, because at first there is so much cost on the mining plants, and then the electricity bill, and if it is increased by 20% to 30%, it will be a very difficult and hurdle. Will become for miners to live in the United States. If we look at it in technical terms, it takes 143 kWh of power energy to mine one Bitcoin, so if more 10℅ is implemented on it, it becomes very expensive to spend on an on an electricity bill for a miner.
 
 So if these conditions continue, there is a possibility that miners will move from the United States and start mining in a cheaper country where the electric bill cost is lower. I think Algeria would be good if there were one of the world's lowest electricity bill prices. Like $0.033 per kWh for the business district and if we talk about the total cost, it costs $4,183 to mine one Bitcion. So Algeria is one of the best countries for doing mining.

[jossiel]

cryptocrits "read full article" website has lots of pop-ups that want you to download crap... i dont recommend visiting his link

advice to cryptocrit: remove the crappy stuff your site tries to get people to download

This is the better summary than what OP is trying to convey. With this hint, I won't take time to visit your website OP if you want us to go through it.

Going through with the taxation of 30% for the miners, it is surely not welcomed by the miners but since it's just a proposal and Biden is about to end his term and if he ever wins again which is most unlikely from what the survey says then this proposal won't be pushed.

As for the US, it has to gather a lot of tax for its efforts to support those alliances that are engaging into war or else, we will see another printing season of fiat.

[PrivacyG]

This tax would be introduced gradually: starting at 10% in the first year, then increasing to 20% in the second year, and finally reaching 30% in the third year.

This is the best part of the new Law.  It gives the bigger Miners time to move out their equipment.

I have a question for Miners of Bitcoin Talk.  With a 30 percent Tax, would it still be worth it to continue Mining or is it more worth it to move out?

As for the regulations mentioned.  Well.  The United States is clearly keen on making it as hard as possible to Bitcoin Miners AND users to continue to exist.  It is nothing new or surprising to me and I do expect things to become worse over the years.  At least while Biden is still up and running the Presidency.

[yhiaali3]

A few days ago, I read an article on Cointelegraph that the cost of producing one Bitcoin is currently equivalent to about 80K$, and imposing a 30% tax on electricity consumption will significantly increase this cost, and this may cause mining companies to move to countries other than the United States to reduce the cost.

The United States occupies first or second place in Bitcoin mining, and this clear hostile policy of the American government towards Bitcoin and everything related to it will cause the United States to lose an important economic resource to other countries.

[PrivacyG]

The United States occupies first or second place in Bitcoin mining, and this clear hostile policy of the American government towards Bitcoin and everything related to it will cause the United States to lose an important economic resource to other countries.

Exactly.  I think it is a very bad move economically wise.  But on the other hand, the Mining industry is probably nothing (I have not checked numbers) compared to EVERY THING else and considering their hatred on Bitcoin, they may be happier this way even with the lost resources.

Probably a small hit to United States but a HUGE opportunity for other countries.

[Poker Player]

The United States occupies first or second place in Bitcoin mining, and this clear hostile policy of the American government towards Bitcoin and everything related to it will cause the United States to lose an important economic resource to other countries.

Really? A socialist measure is going to destroy a sector? Not a chance. It's like all those companies that have been fleeing states like California or NY to Texas, Florida or Tennessee because they are crazy or something and don't realize how good the high taxes, excessive regulations, legal uncertainty, tolerance of crime and the like are.

[ABCbits]

It's not surprising, no business would be happy if there's proposal which state they'll need to pay more taxes. Miner should re-consider their long-term plan if this proposal shows many sign become law.

cryptocrits "read full article" website has lots of pop-ups that want you to download crap... i dont recommend visiting his link

advice to cryptocrit: remove the crappy stuff your site tries to get people to download

In addition, why would OP put widget of bitcoin price chart on top of the page when the page itself is about news. Anyway, here's less worse alternative news source for this topic, https://www.dlnews.com/articles/regulation/bidens-dame-tax-could-destroy-bitcoin-mining-in-us/.

[KiaKia]

Biden administration proposed DAME tax on Tuesday, which would charge Bitcoin miners a 30 % tax on the cost of the electricity, but crypto industries are not happy with this proposal, have shared negative opinion against this decision.

The Bitcoin mining community is facing a new challenge that could change its future in the United States. The White House has proposed a tax called the Digital Asset Mining Energy (DAME) tax, which would make it more expensive for companies to mine Bitcoin and other digital currencies.

On Tuesday, this proposal was brought back into the spotlight as part of the government’s budget plan for the next fiscal year. The DAME tax would charge Bitcoin miners a 30% tax on the cost of the electricity they use. This tax would be introduced gradually: starting at 10% in the first year, then increasing to 20% in the second year, and finally reaching 30% in the third year.

Read full article here
https://www.cryptocrit.xyz/2024/04/DAME-tax-in-USA.html

They are mad

Simply because they can't regulate Bitcoin, lol, decentralisation at its best, Bitcoin is surely unstoppable, the only way left is to frustrate the hell out of Bitcoin miners.

Like I used to say, if the government can make money out of anything, it is sure to stay up and running, in Bitcoin's case they have no other option than to start ripping people off, so annoying, but thankfully I am not from the United States.

Assuming I am from such country and all I ever know to do is making money off my miners, 30% is a lot of money and a good reason to leave the country behind, for someone who is running a big mining farm, the 30% is enough to even settle down somewhere else and enjoy your mining operation.

[Faisal2202]

So it means, that US citizens have to pay a 30% extra tax on electricity only, besides the tax they are already paying on making TX in crypto. That's not the right thing, 30% is a lot of tax, I sometimes wonder about the amount of tax that the US government is charging their people, they actually don't need that much, where they spend all that money. Besides, I am wondering how people are ok with such a tax. I know citizens are not given a big hand here as our government won't listen to us if they decide to employ tax then they will.

Giving 30% of what you make, the means of what you use, is like paying 2 times, one by paying electricity, second by paying in tax form for using that electricity haha. That's quite funny. I just going to say they need more funds for **r but I will pass it by using * haha. Overall I am not a US citizen, nor a miner, but I still think that's seems unnecessary I hope there would be a solid reason behind it.

[Reatim]

Biden administration proposed DAME tax on Tuesday, which would charge Bitcoin miners a 30 % tax on the cost of the electricity, but crypto industries are not happy with this proposal, have shared negative opinion against this decision.

30% is huge and obviously crypto enthusiasts are not the happiest.

The American government has a choice of embracing or rejecting crypto and they know as a country that uses and owns a huge portion of bitcoin they can not try to regulate and restrict people from owning them. So their solution is an incredibly and unfairly high tax requirement.

This might discourage people from participating in crypto anymore.