Legislation aimed at addressing the U.S. debt ceiling and preventing a potential default on debts would likely eliminate a proposed tax on the energy consumption of cryptocurrency miners
U.S. Debt Ceiling Deal Blocks Bitcoin Mining Tax
Legislation aimed at addressing the U.S. debt ceiling and preventing a potential default on debts would likely eliminate a proposed tax on the energy consumption of cryptocurrency miners, according to Ohio Representative Warren Davidson. A draft bill was released by U.S. lawmakers on May 28, outlining a two-year suspension of the debt ceiling. While President Joe Biden had wanted the deal to include tax increases for corporations and high-income individuals, the most recent draft suggests that these measures are unlikely. Representative Davidson tweeted that the bill blocks “proposed taxes,” including a 30% tax on electricity used by crypto miners that had been part of President Biden’s FY2024 budget.
The tentative agreement reached represents a compromise and aims to avert the possibility of a debt default. However, the debt ceiling bill still needs to secure approval in a divided House of Representatives, with some Republican lawmakers openly hostile towards House Speaker Kevin McCarthy. The legislation is expected to be voted upon by lawmakers on May 31, as the U.S. government faces the looming deadline for a potential debt default in June.