⚡ The US Contemplates Reintroducing a Tax on Miners
posted 12 Mar 2024
The Biden administration has reiterated its proposal to implement a 30% excise tax on electricity used by miners, targeting the 2025 fiscal year's budget. This move mirrors a similar proposal from last year, which ultimately was not adopted.
The tax introduction is planned to be gradual, starting at 10% in the first year and escalating to 30% by the third fiscal year. This tax would be levied on the cost of electricity used, regardless of whether the mining equipment is owned or leased.
Additionally, this excise tax is intended to apply even to self-generated electricity, such as that produced by solar panels.
The proposal has faced criticism from industry insiders. Pierre Rochard, Vice President of Research at Riot Platforms, and US Senator Cynthia Lummis have both voiced their concerns, arguing that such a tax could stifle the growth of the industry within the country.
It's also worth noting that the Bitcoin network is approaching a halving event, due to take place in April this year. The halving will see the reward for mining a block cut in half, significantly impacting miners' revenues despite the recent substantial rise in BTC's value.
The tax introduction is planned to be gradual, starting at 10% in the first year and escalating to 30% by the third fiscal year. This tax would be levied on the cost of electricity used, regardless of whether the mining equipment is owned or leased.
Additionally, this excise tax is intended to apply even to self-generated electricity, such as that produced by solar panels.
The proposal has faced criticism from industry insiders. Pierre Rochard, Vice President of Research at Riot Platforms, and US Senator Cynthia Lummis have both voiced their concerns, arguing that such a tax could stifle the growth of the industry within the country.
It's also worth noting that the Bitcoin network is approaching a halving event, due to take place in April this year. The halving will see the reward for mining a block cut in half, significantly impacting miners' revenues despite the recent substantial rise in BTC's value.
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