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.
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.
