Seems the US government are questioning the use of electricity in united by putting all blames on crypto mining operation with the way Mr president propose 30% tax on cryptocurrency mining operation for 2024.
In the recent press release by white house, Biden administration finally introduced the DAME excise tax or whatever it been called for fiscal year 2024. Mr president issues the crypto mining firms with bad idea of 30% tax and explained that they aren't paying for the "full cost they impose on others", which means they are responsible for the usage of electricity in US and they are not paying actually for it.
Further said that cryptomining "does not generate economic benefits".
Honestly, Mr president hobble for crypto industry is bad idea and it going to drive innovation out of the US and if that happens US will lag behind.
I read couples of the news before getting the real source release, I was just imagine from the statement made that crypto mining has negative impact on the society and it's operation consume more power and likely affecting people around where they mine with high electricity prices. Although the process of mining cryptocurrency take some amount of energy, but yet people criticized this move and ask why Biden impose 30% tax while they use the same energy with video game.
Yes, Democratic presidential candidate Robert F. Kennedy seize on this logic on his Twitter that,
“Bitcoin mining uses about the same as video games, and no one is calling for a ban on those,” in fact people made mentioned of different industries that use large amount of electricity but aren't taxed for it.
I believe the administration proposal made is an excuse or way to threaten crypto industry to move abroad, because I see it as non of the solution to fight economy challenges US facing.
Forbes made it clear is bad move and taxing mining company is way to encourage them not to minimize the use of energy because they paid for it and that might worst the situation.
However if the proposal signed the government will ask for amount of electricity used by crypto miners, where the electricity comes from , gas, purely renewable, wherever to know the usage and if they don't like the way it been use, they might against the company.