“No Extra Tax for Bitcoin Miners: US Government’s Struggle with Over-Indebtedness”

The United States government is now so much in debt that it is struggling to finance the debt. The Biden government had therefore devised an extra tax on bitcoin miners, but not everyone was in favor of this. Fortunately, an agreement has now been reached, and extra tax for miners is not part of this.

US high consumption and over-indebtedness

The plan for additional taxation for miners was created back in March. An important reason for this at the time was that these companies used a lot of energy, and the government thought that the companies should pay extra for the pressure they put on the environment with their consumption.

Not much later it turned out that the American government could hardly pay its own national debt. Since the Federal Reserve has raised interest rates sharply, debt has also become more expensive for the government. But the debt was also close to the level of the debt ceiling, which could not simply be increased.

Dwhy parliament came up with the solution to raise the debt ceiling for the umpteenth time so that it could refinance the national debt. Another aspect of the deal was that crypto miners would pay more tax.

But not everyone was in favor of this. For example, the US Senate has a number of prominent Bitcoiners in its midst, including Wyoming Senator Cynthia Lummis. She recently stated at a conference that this additional tax will not be introduced if it is up to her.

No extra tax for crypto miners

Looks like Lummis was right. There is now a 99 page counting agree. But Pierre Rochard, Riot Platforms’ head of research, noticed that bitcoin mining was never mentioned. A US government employee declares on Twitter that the additional tax on mining has been rejected.

Yes, one of the victories is blocking proposed taxes.

— Warren Davidson 🇺🇸 (@WarrenDavidson) May 29, 2023

Ironically, not all Democrats are anti-mining. Says presidential candidate Robert F. Kennedy Jr. that’s the extra load was a bad idea. In fact, Bitcoin would consume about as much as all video games combined, but no one has any plans to ban gaming.

According to him, Bitcoin is under attack because it is a financial threat to the established order. “Governments are harassing their enemies [invloed op te oefenen op] bank accounts and payment platforms. Until we regain trust in government, we need cash and crypto,” Kennedy Jr. said. in a Twitter thread.