in a postal On Tuesday, the White House Council of Economic Advisers (CEA) revealed online that U.S. President Joe Biden is seeking to impose punitive taxes on cryptocurrency mining because it “causes harm to society.”
Specifically, the United States will impose a 30% tax on energy costs for mining companies. Unusual penalties unique to the industry can threaten the profitability of the businesses involved.
“Currently, cryptocurrency miners don’t have to pay the full costs they incur in other areas, such as local environmental pollution, rising energy prices, and the impact of increased mining. Greenhouse gas emissions have a climate impact,” according to the CEA’s review of the so-called digital asset mining energy A description of the tax.
Other energy-intensive industries will not be subject to the same new tariffs, as the CEA believes that “cryptocurrency mining does not generate the same national and local economic benefits as businesses using the same amount of electricity.”
The Biden administration first proposed the sales tax in a document released by the U.S. Treasury Department on March 9. The document, also known as the “Green Paper”, lays out the government’s revenue-generating proposals and priorities for the coming year, but these proposals tend not to be passed when the National Assembly finalizes state spending plans.
The post said the tax could raise as much as $3.5 billion in revenue over the next 10 years.
Some of the largest miners in the US include Riot Platforms (RIOT), Marathon Digital (MARA), Cipher Mining (CIFR), Greenidge Generation (GREE), BitDeer (BTDR) and CleanSpark (CLSK).
The U.S. government’s Council of Economic Advisers also released a report in March detailing their deep concerns about the industry and highlighting the impact mining could have on the economy. These concerns include pollution and the cost to local communities when miners move in. Even mining companies that use clean energy can increase the overall energy costs and usage in their surrounding communities.
Republicans in the U.S. Congress oppose regulators and government efforts to punish the industry. Therefore, the Republican-controlled House may not impose such punitive taxes on the industry.
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According to Coindesk
