Representative Warren Davidson claims that the law to raise the federal debt ceiling prohibits “proposed taxes,” such as a 30% tax on electricity used by cryptocurrency miners.
According to Ohio Rep. Warren Davidson, the proposed tax on cryptocurrency miners’ energy consumption is likely to be removed as part of a tentative agreement meant to prevent the United States government from defaulting on its debts.
Following discussions with President Joe Biden and House Speaker Kevin McCarthy, US lawmakers published a draft act May 28 allowing the government to raise the debt ceiling, a limit imposed on the amount of debt the Treasury Department can incur. To prevent what appears to be an economic disaster for the US government, the law still needs congressional approval before it goes into effect.
The debt ceiling would be suspended for two years under the proposed law, allowing the US government to continue to borrow money and pay off its bills. Although recent estimates suggest this is unlikely, President Biden reportedly wants the deal to include tax increases specifically for high-income businesses and individuals.
Davidson said in a May 28 tweet that the law prevents “proposed taxes,” such as a 30% tax on electricity used by bitcoin miners, that was included in President Biden’s FY2024 budget. If the latter is approved, miners may be subject to a three-year tax increase of 10% on power produced starting in 2024.
President Biden stated after the negotiations, “The (…) agreement is a compromise, which means nobody gets everything they want.” For the first time in our country’s history, the deal avoids the worst scenario of default.
Long before the possibility of a financial default appeared to be a problem, the White House and mining tax advocates came under fire from many in the area. Dan Held, former growth leader at Kraken, and several bitcoiners applaud the debt ceiling bill.
The debt default deadline, which was anticipated in June, means that the US government is not out of the woods yet. The bipartisan agreement signaled that lawmakers were moving forward, but the House of Representatives remained divided, with many Republicans openly hostile to Speaker McCarthy. On May 31, the legislative assembly is expected to convene and vote on the proposal.
According to an Ohio lawmaker, a deal to prevent US financial defaults rejects the proposed 30% cryptocurrency mining tax. first appeared on BTC Wires.