United

Biden

Bitcoin

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.&nbsp;
In a U.S. Department of the Treasury document titled “General Explanations of the Administration’s Fiscal Year 2025 Revenue Proposals,” the administration highlighted that current laws do not address digital assets apart from broker and cash transaction reporting. Because of this, the administration wants to impose an excise tax — taxes levied on goods like fuel — on digital asset mining. The Treasury&nbsp;<a href="https://home.treasury.gov/system/files/131/General-Explanations-FY2025.pdf" target="_blank" rel="noopener nofollow">wrote</a>: 
<blockquote data-ct-non-breakable="true">
 “Any firm using computing resources, whether owned by the firm or leased from others, to mine digital assets would be subject to an excise tax equal to 30 percent of the costs of electricity used in digital asset mining.”
</blockquote>
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. 
According to the administration, this proposal would be effective for taxable years after Dec. 31, 2024. The government will introduce the tax in three phases: 10% in the first year, 20% in the second year and 30% in the third year.
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. 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-03/91b40d4e-916d-47af-8d43-808989cef965.jpg" alt="" title="">
 <figcaption style="text-align: center;">
 Pierre Rochard weighs in on the 30% tax on miner electricity. Source: <a href="https://twitter.com/BitcoinPierre/status/1767371855512432900" target="_blank" rel="noopener nofollow">Pierre Rochard on X</a>
 </figcaption>
</figure>
Pierre Rochard, vice president of research at Bitcoin mining infrastructure firm Riot Platforms, <a href="https://twitter.com/BitcoinPierre/status/1767371855512432900" target="_blank" rel="noopener nofollow">highlighted</a> that even those using solar or wind power would be affected. Rochard believes this is a ploy to suppress Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) and launch a central bank digital currency (CBDC).
Related: <a href="https://cointelegraph.com/news/texas-blockchain-council-riot-platforms-eia-omb">Texas Blockchain Council and Riot secure win against US energy officials</a>
Meanwhile, U.S. Senator Cynthia Lummis voiced opposition to the tax proposal on X. According to Lummis, while the inclusion of crypto on the budget shows that the administration may be bullish on crypto, a 30% tax would destroy the industry’s foothold in the United States.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-03/2db7876a-a09c-4566-93d0-14f909b1f9ad.jpg" alt="" title="">
 <figcaption style="text-align: center;">
 Lummis on the proposed 30% crypto mining tax. Source: <a href="https://twitter.com/SenLummis/status/1767309098310152698" target="_blank" rel="noopener nofollow">Cynthia Lummis on X</a>
 </figcaption>
</figure>
This is not the first time the Biden administration has tried implementing a 30% tax on electricity used by crypto miners. On March 9, 2023, Biden made the same attempt to tax miners in the <a href="https://cointelegraph.com/news/biden-budget-proposes-30-tax-on-crypto-mining-electricity-usage">budget proposal for 2024</a>. 
Magazine: <a href="https://cointelegraph.com/magazine/crypto-city-guide-perth-cointelegraph-magazine/">Wealthy, isolated, and incredible beaches: Perth Crypto City Guide</a>

Biden resurrects 30% crypto mining tax in new budget proposal

Cointelegraph

2024년 3월 12일에 게재된 다른 기사

5000x ROIs and Ambitious Roadmap: BlockDAG Reels in Cardano and Hedera Investors

Exclusive Report: The Bitgert Buying Spree – What You Need to Know About This Explosive Cryptocur...

AVAX and GALA Prices Surge As Crypto Gaming Tokens Turn Bullish

Stake $DECHAT for Guaranteed AI NFTs

Insights from Ripple CTO: XRP’s volatility and AMMs in cryptocurrency investment

Breaking: CoinShares Acquires Valkyrie Bitcoin ETF To Strengthen US Presence

무료 뉴스레터에 가입하여 매일 최신 암호화폐 소식을 받아보세요!