Thursday, May 4th 2023
US Government Targeting Crypto Miners With Proposed Energy Bill Tax
The US Government is considering new plans that will attempt to curb the after effects of cryptocurrency mining. The White House revealed details about its proposed "DAME Tax" scheme on Tuesday of this week - the Digital Asset Mining Energy excise tax is under consideration for this year's US Budget. The government wants to address the impact that cryptomining has on the US economy as well as the environment, alongside numerous other national challenges. Companies engaged in the extraction of cryptocurrencies could be charged extra for the running of computer equipment (starting in early 2024). A White House spokesperson states: "after a phase-in period, firms would face a tax equal to 30 percent of the cost of the electricity they use in cryptomining."
American crypto companies are facing a 10 percent taxation of their energy bill for 2024, that will then increase to 20 percent in 2025, and the maximum tax rate will hit a high of 30 percent in 2026. The White House number crunching team reckons that $3.5 billion could be generated by the proposed DAME excise tax. The new rules would represent a radical change for large scale cryptomining efforts: "Currently, cryptomining firms do not have to pay for the full cost they impose on others, in the form of local environmental pollution, higher energy prices, and the impacts of increased greenhouse gas emissions on the climate. The DAME tax encourages firms to start taking better account of the harms they impose on society," reads a White House statement." The government's investigation has determined that the domestic cryptomining industry is close to consuming more electricity than the entire nation's residential lighting system. US lawmakers last year calculated that some of the larger digital asset mining firms are capable of using more energy than nearly all of the residential population based in Houston, TX.
Sources:
White House Statement, The Register, Guardian UK
American crypto companies are facing a 10 percent taxation of their energy bill for 2024, that will then increase to 20 percent in 2025, and the maximum tax rate will hit a high of 30 percent in 2026. The White House number crunching team reckons that $3.5 billion could be generated by the proposed DAME excise tax. The new rules would represent a radical change for large scale cryptomining efforts: "Currently, cryptomining firms do not have to pay for the full cost they impose on others, in the form of local environmental pollution, higher energy prices, and the impacts of increased greenhouse gas emissions on the climate. The DAME tax encourages firms to start taking better account of the harms they impose on society," reads a White House statement." The government's investigation has determined that the domestic cryptomining industry is close to consuming more electricity than the entire nation's residential lighting system. US lawmakers last year calculated that some of the larger digital asset mining firms are capable of using more energy than nearly all of the residential population based in Houston, TX.
103 Comments on US Government Targeting Crypto Miners With Proposed Energy Bill Tax
I don’t know about the us but here in Belgium and the Netherlands people with solar panels are getting their inverters turned of to stop the grid from failing.
solar is great if you are somewhere in the boonies and don’t have a connection to the grid.
for everyone else its a financial tool If properly managed and the government incentives get used fully.
the environment would be far better off if the damn things were never invented.
a big nuclear plant and geothermal/hydro for base load and large the bigger the better wind turbines would be infinitely better
Don't they have safer, more efficient NPP designs now? I remember reading something about salt reactors (where some sort of salt, not necessarily NaCl, is the heat transfer medium).
They can move anywhere they want it doesn't matter if their money is in the global banking system. If the govt. wants your money they can get at it.Molten salt reactors are still pretty new and while several have been built they're just really getting into the commercialization phase and out of development: en.wikipedia.org/wiki/Molten_salt_reactor
Nuke reactors are great and all but unless you're willing to go France's route (that is heavily standardized on 1 or 2 designs that are mass produced AND ran by the govt not the power companies, they'll screw it up trying to save a buck or 2) they're not worth bothering with.
I have 3 workstations and 2 gaming PCs in my house that combined use more electricity than what 14 of my mining rigs used to consume.
If this is allowed then nothing will stop them to put an electricity tax on gamers in a few years, especially if nvidia keeps launching 500 watt GPUs.
The Fed, aka: the Federal Reserve, sets interest rates in the country. By raising interest rates, the Fed destroys money.
FDIC is another group. They insure banks. But FDIC only has a few hundred-billion bucks. The Federal Reserve is in control of trillions. I pay attention to Federal Reserve because their actions are more important with regards to M2 action (ie: how much money is growing, or shrinking in this country). Totally different people, totally different mechanisms. FDIC's job is to ensure that banks remain stable by regulating and investigating banks. Or, should the regulations fail, then FDIC will backstop our bank accounts, or find a buyer for an ailing bank. (FDIC didn't backstop FRC's collapse for example. FDIC went out and convinced JPMorgan to buy FRC)
US Treasury is in charge of paying the US Government's bills and our debt. Totally different people, again.
Mark my words and watch what happens. If this bill passes, sooner or later americans will be charged with extra tax just for running their ACs and refrigerators 24/7. It may not happen within the next 10 years but it will happen eventually and this bill will be the gateway for them to ask for extra bullshit taxes.
It's not about the environment. It's about money, as always. Crypto is a source of income, that's why mining gets taxed, and in my opinion, it should have been from the point of its invention.
US Government says "DAME Tax"
World is so funny. We all know who orders it.
The US government is going after crypto because people having sound money that the USG can't silently confiscate via inflation, and control via censorship and sanctions, is a threat to their flaccid dying empire. What's the carbon footprint of having a military larger than the next ten largest militaries combined with close to 1,000 bases all over the planet? It's a lot.
You have zero clue how the power grid works, how much electricity is used by various industries and services, and are pitching braindead conspiracy theories. Being the most blood-thirsty, warlike people in the history of the world with a rapidly declining currency, only interacting with neighboring countries to bully or destroy them, and ever growing wealth gap between the rich and everyone else domestically might be causing more "social decline" than fucking doggy coins.
Now imagine how energy, how is big footprint for all kinds of crypto.
situation a) you have some btc tucked away somewhere hidden on the internet.
situation b) you only have money in the bank a bank that was ordered by the government to lock your accounts because your are some sort of evil.
which one is the best scenario
Oh right. All that money is gone, and there weren't any evil governments that popped out and stole his money.
It's just an average month in Cryptoland. Celsius, Voyager, FTX, Mt. Gox.
Your money was safer in pretty much everything else than in Cryptocoin.
After all if crypto is "sound money" then why does the value flucutate madly? Or rugpulls happen all the time by the people who you should supposedly trust in cryptoland? Or that its treated more as a stock than a currency by litterally everyone? Or things like wash trades, exchanges front running their own clients, and essentially 0 actual professional accounting occur constantly?
Hell pretty much all these crypto currencies were created out of nothing in the first place and they just keep cutting 1 unit of their "currency" into infinitely smaller pieces anyways!The military actually has some sort've real world value and purpose though. Buttcoins exist solely to scam people.
used an exchange wallet you were doing it wrong.
The correct answer is the situation is contrived. Use fucking cash.