Senator Cynthia Lummis argues that Biden's 30% tax on Bitcoin mining will harm innovation and energy efficiency in the U.S.
On July 23, Senator Cynthia Lummis released a comprehensive report challenging the Biden administration’s proposed 30% excise tax on Bitcoin mining energy consumption. The report emphasizes the potential benefits of Bitcoin mining infrastructure to the U.S. energy grid and the broader implications of such a tax.
Key Points:
Report Release: Senator Lummis released a report titled "Powering Down Progress: Why A Bitcoin Mining Tax Hurts America," criticizing the proposed 30% tax on Bitcoin mining energy usage.
Energy Consumption and Sustainability: The report highlights that up to 52.6% of Bitcoin mining may be emissions-free, countering the narrative of high environmental impact.
Grid Stability: Bitcoin mining facilities help stabilize energy grids by providing dynamic electrical loads, with significant contributions noted during peak demand periods in Texas.
Innovative Energy Use: Lummis argues that the proposed tax would discourage sustainable energy practices and recycling techniques in Bitcoin mining, citing examples from El Salvador, Finland, and Kenya.
Economic Impact: The senator warns that the tax could drive Bitcoin miners out of the U.S., reducing potential tax revenues, as illustrated by the exodus of miners from China following its 2021 ban.
Senator Cynthia Lummis contends that the Biden administration’s proposed 30% excise tax on Bitcoin mining would hinder innovation and sustainable energy practices, ultimately driving the industry out of the U.S. and decreasing potential tax revenues.
Source: Cointelegraph
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