The United States rejected plans for Bitcoin Mining Consumption Tax, confirms the Congressman

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The bidges government's federal budget proposal to charge a tax of 30 % to all Bitcoin miners in the United States was rejected, a national politician confirmed on Sunday.

The withdrawal is part of a number of tax-related concessions that the government has made in the negotiations on the rapidly approaching debt limit of the country.

no longer mining tax

Ohio Member Warren Davidson divided The text for the newly proposed agreement on the debt limit is published on Sunday-a highlight of the negotiations between the democratic president of the Republican House of Representatives,, Kevin McCarthy.

The draft law would completely suspend the debt limit until January 1, 2025 and delete it as a topic for the 2024 federal election. On the other hand, it would introduce a number of expenses, including upper limits for non-defense spending and cuts in IRS financing.

In response to Davidson, Pierre Rochard-Vice President for Research at Bitcoin-Mining company Riot Platforms-stated that the draft law did not contain any mention of the government previously proposed by the government. Davidson confirmed that the proposal was rejected and that blockages against the taxes proposed by the Democrats were among the negotiation wins of the republicans.

The proposed tax would have ensured that cryptocurrency miners with a proof of work would have to pay a 30 percent tax on the entire energy used during the mining process, which would have effectively increased the costs for the operation of a mining company in the United States.

The administration justified The tax was submitted to the congress at the beginning of this month to add miner through "higher energy prices" and "greenhouse gas emissions" to pay that you impose others on ”.

critics of consumption tax

Critics claimed that the energy tax would arbitrarily dismiss to a specific industry and to displace the mining from the USA-the currently most popular mining location worldwide.

among them was Senator Cynthia Lummis, who said viewers at Bitcoin Miami 2023 that the stressful tax is "not introduced".

"It is absolutely important that the development of this technology and bitcoin mining takes place even in the United States," she said at the time.

Many Bitcoin advocates deny the idea that the mining causes great damage to the environment from the outset. In September, Michael Saylor, Executive Chairman from Microstrategy, published a blog post in which he argued that the CO2 emissions of the miners "without the competitive guerrilla marketing activities of other crypto supporters and lobbyists.

Ripple co-founder Chris Larson last year financed a $ 5 million environment campaign to encourage bitcoiners to convert their protocol to a less energy-intensive consensus mechanism such as the proof of stake. Organizations such as the Environmental Working Group and Greenpeace participated.

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