White House Pushes DAME Tax Proposal to Address Alleged Environmental Costs of Crypto Mining – Mining Bitcoin News
On May 2, 2023, the Biden administration unveiled a blog post outlining a Digital Asset Mining Energy (DAME) tax, which appeared in the president’s sweeping 182-page budget proposal for fiscal year 2024. The DAME tax targets “make crypto miners pay for the costs they charge.” over others” regarding the environmental impact of cryptocurrency mining activities.
Cryptocurrency miners may face gradual tax increases with Biden’s DAME proposal
While expressing concerns from the White House Council of Economic Advisers about the so-called climate crisis, the Biden administration argues that the energy consumption of mining crypto assets leads to “negative repercussions on the environment, the quality of life, and the power grids where these companies are located across the country.”
To counter these environmental costs, the White House believes that the Digital Asset Mining Energy (DAME) tax will encourage companies to “begin to better consider the harms to society.” The DAME tax aims to impose a gradually increasing tax on crypto-asset miners in the United States, eventually reaching 30%.
In the blog postThe White House is referring to a recent New York Times article that was accused of being a “one-sided hit piece” based on dated data while offering no counterarguments. Moreover, the Biden administration includes a comparison of the electricity used in mining to the energy consumption of residential lighting in America — a tactic seen as disingenuous in making readers believe that technology steals energy resources intended for human use.
However, this comparison neglects to take into account the benefits provided by the direct response systems applied or Current search results From ESG analyst Daniel Patten. The Biden administration’s message fails to acknowledge the renewable energy sources that benefit bitcoin miners or how mining can mitigate flare emissions.
However, the White House contends that miners who use renewable energy actually “reduce the amount of clean energy available for other uses,” which drives up prices for consumers. The term “dirty” is used many times when referring to “the dirtiest sources of electricity”.
Finally, the White House highlights that the DAME tax represents “just one example of the administration’s efforts to combat climate change.” It is just “the beginning of getting crypto miners to pay their fair share of the costs imposed on local communities and the environment.”
What do you think of DAME’s tax proposal? Do you think it will effectively address the alleged environmental costs of cryptocurrency mining, or do you think it unfairly targets the mining industry? Share your opinions in the comments section below.
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