The Biden administration has proposed a 30% tax on electricity used for Bitcoin and other crypto mining activities in its latest budget for the fiscal year 2024. The proposal, called the Digital Asset Mining Energy (DAME) Excise Tax, aims to address long-standing national challenges and emerging risks surrounding digital assets, including their environmental impact and energy consumption.
The proposed tax is set to be phased in over the next three years, with the Biden administration stating that it will make crypto miners pay for the costs they impose on others. In a blog post on the White House website, the administration noted that the tax would encourage firms to take better account of the harms they impose on society.
However, the proposal has been met with conflicting perspectives, as various crypto mining protection bills have been passed in several US states. The press release from the White House took aim at the benefits of the industry, stating that crypto mining does not generate the local and national economic benefits typically associated with businesses using similar amounts of energy.
The DAME tax proposal is seen as a move to reduce the impact of crypto mining on the environment, as it consumes a significant amount of electricity. It is a clear indication that the Biden administration is taking a closer look at the crypto industry and its impact on society.
The proposed tax also raises concerns among crypto enthusiasts who argue that it will make the US less competitive in the crypto mining industry. The tax could lead to miners moving to other countries with more favorable tax policies, resulting in a loss of revenue for the US.
