the Biden administration Bill proposes to keep it Cryptocurrency Mining companies are responsible for how much energy costs they kick out with a new 30% tax on electricity costs. Excise Tax on Digital Asset Mining Energy (DAME) announced at the White House website On Tuesday explaining it Cryptocurrency companies must pay higher energy taxes for the exorbitant amount they consume.
According to the proposed legislation, encryption companies Owns big impact on environmental pollution and generate Energy price hikes, and It’s time for companies to pay the “full cost to others”.
Currently, cryptocurrency companies do not have to pay the full cost that they impose on others, in the form of local environmental pollution, rising energy prices, and the effects of growing greenhouse gas emissions on the climate. The White House said on its website that the DAME tax encourages companies to start taking better account of harms to society.
The impact of cryptocurrency mining on the global climate is increasing, according to Benjamin A. Jones, associate professor of economics at the University of New Mexico. Jones told UNM Newsroom Late last year stated that “Bitcoin mining or production uses huge amounts of electricity, mostly from fossil fuels, such as coal and natural gas. This causes massive amounts of air pollution and carbon emissions, negatively affecting our global climate and our health.”
The White House is now working on Pay back against The effects of cryptocurrency mining with the DAME tax proposal aimed at combating its “negative environmental repercussions” that generate pollution that “falls disproportionately on low-income neighborhoods and communities of color.”
According to the proposal, the tax hike is estimated to raise $3.5 billion in revenue over 10 years, meaning that cryptocurrency mining companies cannot move from one location to another to avoid the fee increase.
Cryptocurrency mining operations were primarily based outside of China until 2021 when it moved to the United States after a blanket ban by Chinese regulators. Since then, the United States has become the leading country in the field of cryptocurrency mining It swelled in some states like Texaswhich now It represents 2,100 megawatts of electricity supply to the stateLee Bratcher, chair of the industry group’s Texas Blockchain Council, said recently Reuters. Not only Cryptocurrency mining is a big part of Texas energybut Bratcher told the outlet that its usage rose 75% in 2022 and it nearly tripled energy use compared to the previous 12 months.
the High power consumption by crypto miners It means that locals end up paying more, which leads to an unfair drain on the economy. But the new tax proposal is partly intended to mitigate some of the ramifications of cryptocurrency mining companies.
The White House concluded on its website that “the primary goal of the DAME tax is to begin making crypto miners pay their fair share of the costs imposed on local communities and the environment.”