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Proposed 30% Tax on Bitcoin Mining Scrapped in US Debt Talks

source-logo  coinspress.com 30 May 2023 12:57, UTC

Bitcoin mining has gained attention due to its potential role in a crucial negotiation.

Ohio Rep. Warren Davidson revealed that a tentative deal to prevent U.S. government default might benefit cryptocurrency miners by scrapping a proposed tax on their energy consumption. This development brings hope to the crypto community, removing a hurdle for Bitcoin miners and supporting industry growth.

U.S. lawmakers introduced a bill addressing the debt ceiling, allowing the government to continue borrowing money and meeting financial commitments for two years. The latest draft suggests that proposed tax increases targeting corporations and high-income individuals may not be included, likely a compromise to gain broader support for the legislation.

The White House’s proposal to heavily tax Bitcoin mining seems to have been abandoned as a result of the agreement to prevent U.S. default on debt. Despite no new updates from the White House, Ohio Rep. Davidson confirmed that the mining tax will not be implemented.

Pierre Rochard, Vice President of Research at Riot Platforms, expressed concerns about the absence of any mention of Bitcoin mining in the draft bill. This raised questions about the fate of the proposed Administration’s Digital Asset Mining Energy (DAME) tax.

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The elimination of the mining tax is seen as an achievement, according to Davidson. However, the fate of a 30% crypto tax on mining companies remains uncertain. The tax was proposed to mitigate environmental and societal impacts, but its implementation depends on the outcome of the legislative vote on May 31.

Rochard’s tweet questioned whether this meant the proposed Administration’s Digital Asset Mining Energy (DAME) excise tax proposal had been abandoned.
Davidson, in his reply, tweeted about one of the achievements being the prevention of proposed taxes on cryptocurrencies.