Biden Administration Proposes A 30% Tax on Bitcoin Mining
The President's Council of Economic Advisers released a blog highlighting a new tax in the President’s budget, equal to 30 percent of the cost of the electricity cryptominers use once fully phased in.
- "One new proposal in this year’s Budget, the Digital Asset Mining Energy (DAME) excise tax, is an example of the President’s commitment to addressing both long-standing national challenges as well as emerging risks – in this case, the economic and environmental costs of current practices for mining crypto assets (cryptomining, for short)."
- "After a phase-in period, firms would face a tax equal to 30 percent of the cost of the electricity they use in cryptomining."
- "Estimated to raise $3.5 billion in revenue over 10 years, the primary goal of the DAME tax is to start having cryptominers pay their fair share of the costs imposed on local communities and the environment."
- The article links to the recent Bitcoin mining hit piece by the New York Times, as well as the "research" conducted in President's Economic Report to Congress.
- It claims that even miners using clean power has negative externalities, such as "reduced amount of clean power available for other uses, raising prices and increasing overall reliance on dirtier sources of electricity."
- The text also makes allegations that "cryptomining does not generate the local and national economic benefits typically associated with businesses using similar amounts of electricity."
- "To ensure that cryptomining is not simply pushed from one local community to another, a national policy is needed. Of course, the DAME tax is not a panacea—it is only one example of the Administration’s efforts to fight climate change, reduce energy prices, and increase access to electrified options for all Americans."
- The absurdity of the NY Times hit piece has been pointed in the article by Bitcoin Policy Institute.
- Bitcoin, just like electric vehicles (eVs), is a fully electrified technology with zero direct emissions, and is considered one of the key drivers of pro-renewable demand-response programs.
- According to the latest estimates, "compared to eVs, Bitcoin mining uses a similar proportion of gas (21.14%) but a significantly lower use of coal as an energy source (22.92%): 38% less than eVs."
- The BEEST model suggests that the sustainable composition of the Bitcoin network is currently increasing at 6.2% per year.
White House Blog / Archive
Bitcoin Policy Institute Article / Archive
Bitcoin Energy By Source / Archive