Biden Administration Drops Proposed 30% Tax on Bitcoin Mining
The Biden administration has seemingly agreed, as part of the recent debt ceiling deal, to drop a proposed 30% tax on Bitcoin mining, in what represents a major victory for the Bitcoin community.
The tax, which was proposed by the White House earlier this year, would have been levied on all energy costs incurred by Bitcoin mining firms. The Biden administration had previously argued that the tax was necessary to reduce the environmental impact of Bitcoin mining.
As can be expected, the tax was met with widespread opposition from Bitcoiners and lawmakers around the country. Critics argued that such a tax would be unfair, since other energy uses, industrial or otherwise, do not face similar financial headwinds, and that it would stifle innovation within the Bitcoin sector that’s being established in the United States.
Both the administration and certain groups within the Bitcoin community likely remain committed to finding ways to reduce the environmental impact of Bitcoin mining. It appears, however, that it’s been generally acknowledged that the proposed tax was not the right way to do it.
The decision to drop the tax is a big win for Bitcoin mining. The industry has been under increasing scrutiny from regulators in recent months, and a successful implementation of the tax would have been a major setback.
On another note, perhaps the decision is also a sign that the Biden administration is willing to listen to the concerns of Bitcoiners. That, however, remains to be seen.
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