In a report released by the White House on Tuesday, the administration maintained its position that squeezing miners’ profits is in the best interest of American communities and the environment. The research focused on a proposed 30% excise tax on cryptocurrency mining companies.
“Firms do not have to pay for the full cost they impose on others,” the report states, adding that the proposed tax “encourages firms to start taking better account of the harms they impose on society.”
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Digital asset miners would be subject to the proposed excise tax starting in 2024, and any such company would be required to pay a tax based on their associated electricity expenses, starting at 10% and increasing each year until it reaches 30%.
The tax was included in the White House’s 2024 budget in March, and according to projections, it could help the government cut the deficit by $74 million in its first year, with a possible increase to $444 million by the fiscal year 2033.
