Deal to prevent US debt default nixes planned 30% crypto mining tax, claims Ohio legislator
According to Representative Warren Davidson, legislation addressing the federal debt ceiling prohibits “proposed taxes,” including a 30% levy on the electricity used by cryptocurrency processors.
According to Ohio Representative Warren Davidson, the planned tax on the energy use of cryptocurrency miners is expected to be eliminated as part of a preliminary compromise aimed at preventing the United States government from defaulting on its obligations.
Following discussions with President Joe Biden and House Speaker Kevin McCarthy, on May 28 U.S. politicians issued a draft of a measure enabling the government to extend the debt ceiling, an imposed restriction on the amount of debt the Treasury Department may incur. The law has to be approved by Congress before it can go into force and prevent what seems to be an economic disaster for the United States government.
The proposed legislation would lift the debt limit for two years, enabling the federal government to keep borrowing money and paying its bills as usual. There have been rumours that President Biden wanted tax hikes for companies and high-income people included in the agreement, but this seemed improbable in the most recent draft.
On May 28, Davidson said that the measure had prevented “proposed taxes,” such as a 30% levy on power used by crypto miners, as proposed in President Biden’s FY2024 budget. If the latter had been law, miners would have been subject to a 10% annual tax hike on power production beginning in 2024.
“The agreement […] represents a compromise, which means no one got everything they want,” President Biden remarked after the discussions. For the first time in our country’s history, this accord prevents the greatest imaginable crisis—a default.