“Will Minors Pay New Tax? United States Plans to Tax Cryptocurrency Miners for Electricity Usage”

In the United States, will minors have to pay a new tax?

The measure was proposed as part of the planning of the State Budget for the year 2024. A statement from the White House, released yesterday, details the plans of the administration of Joe Biden with regard to the mining sector. . The title of the document is particularly clear: “Make cryptocurrency miners pay for the costs they impose on others ».

For the United States government, minors must offset the riskseconomic and environmental » that they impose on the country. In particular, increases in electricity prices which are passed on to individuals. For this, it is proposed to tax miners up to 30% of the electricity used. Called Digital Asset Mining Energy (DAME) excise tax, this tax would be applied to all miners.

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Compensate for electricity used

The statement cites a New York Times report, which estimated that the amount of electricity used by cryptocurrency miners matches that used to power all United States resident computers. Furthermore, it is felt that the industry does not sufficiently benefit the community:

« Beyond these costs and risks, cryptocurrency mining does not generate the local and national benefits that are typically associated with businesses using this amount of electricity. »

Also according to the report, cryptocurrencies would not, at this stage, have proven “their social benefits », and therefore would not justify hogging electricity, and driving up costs for consumers. The proposed tax could allow the United States government to recoup $3.5 billion in revenue over the next ten years.

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Towards a new exodus of minors?

As a reminder, when China banned the mining of cryptocurrencies during the year 2021, it led to an exodus of miners to other territories… Including the United States. The country gathered last year 37% of the global hashratethe most important territory in the world in terms of mining.

This tax, if approved, could therefore lead to a new exodus of minors. The operations of these are more profitable again, since the rise in the price of BTC. But they suffered from the fall in prices at the end of 2022. The government press release therefore does not say so, but beyond the financial gains, it is likely that this tax was decided in order to force a redistribution. geography of minors.

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Source: White House, communiqué