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Biden budget proposes 30% tax on crypto mining electricity usage

Published 03/09/2023, 05:46 PM
Updated 03/09/2023, 07:40 PM
© Reuters.

United States crypto miners could eventually be subject to a 30% tax on electricity costs under a budget proposal by President Joe Biden aimed to “reduce mining activity.”

A Department of the Treasury supplementary budget explainer paper released March 9 said any firm using resources — whether they be owned or rented — would be “subject to an excise tax equal to 30 percent of the costs of electricity used in digital asset mining.”

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Am I misunderstanding this? To me, it sounds like the government is looking to tax miners even in situations where they are independently producing their own energy. As an example, if a crypto Miner is entirely self-sufficient, and fully obtaining their energy needs via solar or some other renewable for that matter, the government wants them to pay a 30% fee for the electricity usage the miner produced? If that is the case, and it's not just my misinterpretation, how in the world can one justify doing that?
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