The White House proposes punitive taxes on cryptocurrency mining companies for the first time

ChainCatcher news, the White House Council of Economic Advisers (CEA) stated in an announcement on Tuesday that Biden's team has proposed a punitive tax on cryptocurrency mining companies for the first time in the federal budget proposal, called the "Digital Mining Asset Energy Tax," which is based on the company's energy consumption costs, with a tax rate of 30%.

The CEA believes that cryptocurrency mining companies do not provide the same national benefits compared to other businesses that consume the same amount of electricity, and that they should be taxed to compensate for the impacts they bring to the outside world (such as environmental pollution, etc.). This tax could generate up to $3.5 billion in additional revenue for the government over the next 10 years.

The Economic Advisers had previously released a related report in March, detailing broader concerns about the industry and emphasizing the potential economic impacts of the mining industry. These concerns include possible pollution and the costs associated with relocating mining companies to local communities. The post stated that even mining companies using clean energy could increase the overall energy costs and usage rates in their surrounding communities. (Source link)