Biden budget proposal aims to reduce deficit by $74M in 2024 via energy tax on crypto miners

The Biden administration has proposed a new tax on cryptocurrency mining, as seen in the 2024 budget plan released by the White House. March 9.

Budget proposes tax on mining energy

US President Joe Biden has proposed a new cryptocurrency mining tax.

The administration’s latest budget document proposes imposing a “digital asset mining energy consumption tax” on one line of its table. This addition is projected to reduce the national deficit by $74 million in 2024, $1.38 billion by 2028, and $3.50 billion by 2033.

Separately Commentary paperthe White House specifically proposes a 30% excise tax on all energy costs related to cryptocurrency mining.

The paper adds that the plan should be phased in over three years.

The government justified the proposal by pointing out that cryptocurrency mining requires large amounts of energy and can have negative environmental impacts. It also said mining could raise electricity prices and bring uncertainty to the region’s energy business.

Mining suggestions are only part of the budget

The proposed mining tax is just part of the Biden administration’s larger budget.

The overall budget aims to increase spending from $6.2 trillion to $6.8 trillion while reducing the deficit by $3 trillion over 10 years through tax increases.

Mining regulations are also part of the Biden administration’s goal to regulate energy use and combat climate change.a new fact sheet The budget says it aims to invest $4.5 billion in clean energy initiatives, $1.8 billion in reducing utility and water bills for low-income households, and $3.2 billion in modernizing public housing. .

Although unrelated to energy use, the budget also covers crypto wash trading. Updated tax regulations may make this activity unprofitable.

The budget is expected to face significant opposition from Republicans. As such, it is unlikely to enter into force in its current form.