The Biden administration wants to impose a 30% tax on electricity used for crypto mining

[midian182]

A hot potato: The Biden administration is pushing to impose a 30% tax on electricity used by cryptomining operations. The White House says the extra bill is a result of the harm cryptomining causes the environment, the high energy prices, and its lack of benefits.

In an online post, the White House's Council of Economic Advisers (CEA) proposed the Digital Asset Mining Energy (DAME) excise tax for the fiscal year 2024 budget. It states that the tax addresses the economic and environmental costs of current practices for mining crypto assets. The tax would be introduced in phases across three years, starting at 10% next year, then rising to 20%, and finally to 30%. It's expected to generate around $3.5 billion over a decade.

The CEA wants to introduce the tax because "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 White House highlights a New York Times report that states the amount of power used by 34 of the largest cryptomining operations equals the power used by the surrounding 3 million homes. It adds that the amount of electricity used in cryptomining in the United States in 2022 was similar to what is used to power all the country's home computers or residential lighting.

The post goes on to say that the energy consumption associated with cryptomining has negative spillovers on the environment, quality of life, and electricity grids. Moreover, pollution from electricity generation falls disproportionately on low-income neighborhoods and communities of color.

Also read: What is Crypto Mining? How is this all happening?

Yahoo News notes that other industries that use a lot of electricity, such as chemical and steel, aren't being taxed for their electricity use. The White House said it's because these industries are vital to the economy, supplying jobs and other essentials, while volatile crypto can pose risks to the financial system. "At the same time that the benefits [of cryptomining] have not been fully documented, there are concerns about risk to financial stability, and certainly the environmental concerns," said the White House.

Many countries' governments share the US' concerns about environmental and other issues stemming from cryptomining. China banned it in 2021 - which led to the US becoming the new global mining leader - as have eight other countries. Elsewhere, several US states now restrict cryptomining or charge higher electricity prices for the practice.

Permalink to story.

https://www.techspot.com/news/98542-biden-administration-wants-30-tax-electricity-used-cryptomining.html

 

[ScottSoapbox]

By this logic there should be a 60% tax on electricity for electric cars as they will surpass refrigeration on that usage chart once gas cars are replaced.

 

[Nobina]

They're a bit late to the party.

 

[Ohnooze]

The democrat answer for everything....

 

[BeeeRick]

By this logic there should be a 60% tax on electricity for electric cars as they will surpass refrigeration on that usage chart once gas cars are replaced.

Oh I can see that clear as day. "Yeah we outlawed gas vehicles, now that everyone is electric and there is a higher demand, we need to increase the cost of electricity 300%, and impose a 60% tax on electric vehicles."

 

[wiyosaya]

The democrat answer for everything....

IMO, the more important thing is that its betting on crapto being a sound investment, which crapto is not.
Everyone has brain farts every once-in-a-while.

 

[RandomWAN]

Literally none of the reasons stated are why they want to do this. They simply want to attack a form of currency that is outside government control. If they actually gave half a flip about any of the reasons stated, they wouldn't be trying to jam electric cars down everyone's throat not to mention any of the other "green" technologies.

 

[mattferg]

Literally none of the reasons stated are why they want to do this. They simply want to attack a form of currency that is outside government control. If they actually gave half a flip about any of the reasons stated, they wouldn't be trying to jam electric cars down everyone's throat not to mention any of the other "green" technologies.

What are you on about? Even if you burnt the petrol used in existing cars to generate electricity for EVs, you’d end up with 6x the mileage and 4x less pollution, with 100% less local pollution. How is this the same?

 

[emmzo]

They're a bit late to the party.

Exactly! They took some big profits and now they are doing "the right thing"... But even so, I don`t think the bill will pass. "Other" democrats will block it.

 

[Beerfloat]

This sounds like a good proposal. Residential electricity and transportation are beneficial to society and should be affordable, while crypto mining is not a basic need and does not need to be subsidized.

 

[RandomWAN]

What are you on about? Even if you burnt the petrol used in existing cars to generate electricity for EVs, you’d end up with 6x the mileage and 4x less pollution, with 100% less local pollution. How is this the same?

Look up the amount of diesel used just to acquire the materials to make the batteries and the amount used to ship the materials too and from the variety of places they go before you have completed battery packs, let alone a completed EV. Then look into the amount of waste product that is low to non-recyclable when solar panels and wind turbines age out.

 

[saladbarsmash]

Look up the amount of diesel used just to acquire the materials to make the batteries and the amount used to ship the materials too and from the variety of places they go before you have completed battery packs, let along a completed EV. Then look into the amount of waste product that is low to non-recyclable when solar panels and wind turbines age out.

100%. People don't consider the parts they don't see. Not to mention that plastic is also made from oil, so can't avoid it there either. Windmills are the worst too. The 3.2 billion dollars is what the govt spends every 10 seconds anyway. With the amount they take in taxes per month to what they spend, it won't make a microscopic dent on any interest they need to pay. 30% increase will just be applied across the board to everyone knowing how they function.

 

[Bl00dyMinded]

By this logic there should be a 60% tax on electricity for electric cars as they will surpass refrigeration on that usage chart once gas cars are replaced.

Read my mind! Missing on that list... I love how they care so much about the environment and endorses electric cars... But its worst for the environment lol.

 

[Bl00dyMinded]

Look up the amount of diesel used just to acquire the materials to make the batteries and the amount used to ship the materials too and from the variety of places they go before you have completed battery packs, let alone a completed EV. Then look into the amount of waste product that is low to non-recyclable when solar panels and wind turbines age out.

No point in wasting your breath. They just talk without research. To add more to your statement, just look up the slavery happening just to get the cobalt for the batteries used in EV. But it's good for the environment.

 

[neeyik]

Stick to commenting on cryptomining, please.

 

[PEnnn]

By this logic there should be a 60% tax on electricity for electric cars as they will surpass refrigeration on that usage chart once gas cars are replaced.

What a pathetic, thoughtless response.

Electric cars are used for transportation

Your beloved crypto is a money laundering tool and a ponzi scheme generator used by scammers. Maybe even you can see difference?

Amazing how EV triggers some people!!

 

[PEnnn]

Literally none of the reasons stated are why they want to do this. They simply want to attack a form of currency that is outside government control. If they actually gave half a flip about any of the reasons stated, they wouldn't be trying to jam electric cars down everyone's throat not to mention any of the other "green" technologies.

Ah yes, the evil "government control"...except that each time (almost daily or weekly) some con artist steals millions from the crapto "banks", the fleeced sheep run straight to the government for relief!!

 

[Plutoisaplanet]

100%. People don't consider the parts they don't see. Not to mention that plastic is also made from oil, so can't avoid it there either. Windmills are the worst too. The 3.2 billion dollars is what the govt spends every 10 seconds anyway. With the amount they take in taxes per month to what they spend, it won't make a microscopic dent on any interest they need to pay. 30% increase will just be applied across the board to everyone knowing how they function.

Not sure if joking, but there are 32 million seconds in a year, so that would equate a 10 quadrillion government budget. It doesn't change your original point, but it's more likely that the government spends 3.2 million dollars every 10 seconds. I just hate people running with the memes as fact that go "Elon Musk spent $44B to buy Twitter. Instead you could give all 8B people in the world $5 million each, and still have $4B left over."

That said, I agree a 30% crypto tax won't do squat to help the government deficit, let alone the interest.

 

[yRaz]

Ah yes, the evil "government control"...except that each time (almost daily or weekly) some con artist steals millions from the crapto "banks", the fleeced sheep run straight to the government for relief!!

you mean like how the banks stole peoples retirement funds, failed and then stole more taxpayer money to be kept from failing? Businesses steal trillions of dollars from tax payers ruining literally billions of peoples lives but people get up in arms when a drug dealer launders a few million dollars in crypto. As far as money laundering goes, the "fine art" community launders so much more money than crypto. Or, lets talk about things like bank balance sheets with "unrealized losses". While most certainly not all of it is money laundering, lots of it is. The money disappears from the balance sheets, the bank gets bailed out with tax payer money then they call it "unrealized losses" so the concept is so convoluted to people that they don't think anything of it.

If people want to start talking about money laundering, it isn't even the tip of the iceberg. It's a snowflake that fell on the iceberg but it's a great way to keep people from talking about all the other ways that money is being laundered.

 

[tellmewhy]

The government doesn't like cryptocurrencies, not because of the energy consumption (which, as the chart shows, is comparatively small), but because they want to tax people out of control and control them by controlling their access to their money. This is not acceptable in a democracy; the government is at the service of the people, not the people at the service of the government. They should abolish the bureaucracy shallow measures and the KYC which is unconstitutional and let competition in the banking sector work freely.

 

[ferrellsl]

How would they even enforce such a ridiculous law? Send agents to every home with warrants to see what devices are plugged into the walls and what said devices are doing? It's none of the government's business what I do in the privacy of my own home but remember that this is same bunch of lunatic lawmakers that wanted to outlaw BBQ grills and half its cabinet members are men who wear dresses and makeup and claim to be women. I bet their favorite beer is Bud Light too.

 

[scavengerspc]

Only 30%?

How about at least double that? Then take that revenue and invest in natural gas plants where necessary, wind and solar where possible, and nuke power as an end game.

 

[ID10T]

Or I dunno reduce the military budget by 0.1%

 

[ID10T]

The government doesn't like cryptocurrencies, not because of the energy consumption (which, as the chart shows, is comparatively small), but because they want to tax people out of control and control them by controlling their access to their money. This is not acceptable in a democracy; the government is at the service of the people, not the people at the service of the government. They should abolish the bureaucracy shallow measures and the KYC which is unconstitutional and let competition in the banking sector work freely.

The whole system is far to corrupt to be any where near that reasonable, institutions fully captured by corporate interests, insider trading open and rampant, active governemnt censorship through 3rd party public forums, the revolving door, the writings been on the wall for a long time but you try and point this out to ordinary people and they just see a tinfoil hat.

 

[wiyosaya]

The government doesn't like cryptocurrencies, not because of the energy consumption (which, as the chart shows, is comparatively small), but because they want to tax people out of control and control them by controlling their access to their money. This is not acceptable in a democracy; the government is at the service of the people, not the people at the service of the government. They should abolish the bureaucracy shallow measures and the KYC which is unconstitutional and let competition in the banking sector work freely.

Ah yes, the old crypto is the truth schtick and crypto will set the universe free.

Crypto hasn't freed anyone. In fact, it has bankrupted, thus imprisoning, many.