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Digital Mining: White House Renews Move for 30% Energy Tax

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There is strong criticism coming from the community due to the White House’s CEA (Council of Economic Advisers) blog post on May 2.

Notably, the White House advisors have rekindled their push for the 30% energy taxation concerning digital mining motion.

As per the document published by the United States Department of Treasury last Thursday, U.S. President Joe Biden’s administration has pushed for an excise of 30% taxation on crypto miners.

The cost is meant for electricity consummation by the crypto miners.

Also, there is a plan to remove tax-deductible losses connected to the wash-trading of crypto tokens.

READ ALSO: BitFlyer Receives Penalty for Violating Laws by NY Regulator

More Details of the Story

The announcement for the taxation DAME emerged on March 9.

It came as a part of the US President Joe Biden’s Fiscal Year 2024 budget.

Notably, its purpose is to impose a phased-in 30% excise taxation on electricity usage by crypto miners.

WHITEHOUSE

Source:

The move is to reduce the supposedly negative impact of the crypto-mining business on the environment.

According to the CEA post on May 2, crypto mining has negative consequences on life’s quality, electricity grids, and the environment.

As per research findings, low-income communities and areas of color carry an unreasonable amount of dangerous effects of pollution.

Of course, the danger is due to power production, which also causes a rise in the electricity cost for customers.

The blog post further cites that crypto mining uses clean power like hydropower.

This particular source of power may harm the environment.

It encourages more energy users to convert to “dirtier” electricity sources.

This is because; increased electricity demand pushes up the price for every other form of electricity.

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Can a 30% Tax Fix This Issue?

The Department of Treasury says that imposing excise taxation on miners’ electricity consumption can lower mining activities.

Moreover, it can reduce its related environmental negative effects and other harms.

This particular statement caused Bitcoin to plummet just 1 day later.

Later, the White House CEA (Council of Economic Advisers) published a statement to move the plan back to define the need for the latest taxation.

The CEA further mentioned that cryptocurrency companies aren’t supposed to take care of the cost they impose on others.

However, the price increases due to additional pollution in the surrounding areas.

Also, there are higher energy charges and backlashes of high greenhouse gas emissions on the international climate.

 

 

 

 

 

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