Crypto Mining Dodges 30% Tax in US Debt Ceiling Deal
As President Joe Biden and House Speaker Kevin McCarthy's negotiated agreement on the US debt ceiling becomes public, one intriguing aspect of the deal seems to have effectively stifled certain tax proposals from the Biden administration, particularly the Digital Asset Mining Energy (DAME) excise tax.
The DAME tax, had it passed, would have levied a 30% tax on cryptocurrency mining operations. The Biden administration asserted the need for such a tax to mitigate environmental concerns and societal harms arising from crypto mining activities.
Dennis Porter, the head of the Satoshi Action Fund, a Bitcoin mining advocacy group, questioned the status of the DAME tax proposal in light of its omission from the text of the “Fiscal Responsibility 5 Act of 2023”. Responding to Porter's query, Congressman Warren Davidson (R-OH-08) tweeted affirmatively, indicating the blocking of proposed taxes as one of the agreement's victories.
The debt ceiling deal, embodied in a 99-page bill, still needs to undergo rigorous examination and debate in Congress. The proposed legislation seeks to suspend the nation's debt limit until 2025 to avert a potential federal default and simultaneously institutes constraints on government spending.
Dennis Porter, the head of the Satoshi Action Fund, a Bitcoin mining advocacy group, questioned the status of the DAME tax proposal in light of its omission from the text of the “Fiscal Responsibility 5 Act of 2023”. Responding to Porter's query, Congressman Warren Davidson (R-OH-08) tweeted affirmatively, indicating the blocking of proposed taxes as one of the agreement's victories.
The debt ceiling deal, embodied in a 99-page bill, still needs to undergo rigorous examination and debate in Congress. The proposed legislation seeks to suspend the nation's debt limit until 2025 to avert a potential federal default and simultaneously institutes constraints on government spending.
