• The Biden Administration proposed a 30% tax on Bitcoin (BTC) and crypto mining as part of their $6.8 trillion budget proposal.
• The House Rules Committee passed the proposal by a vote of 7-6, and the full House of Representatives plans to vote on it Wednesday.
• Congressman Warren Davidson (R-Ohio) says that one of the victories in negotiations was blocking proposed taxes, including the crypto mining proposal.
Biden Administration Proposes Tax on Crypto Mining
The Biden Administration released a $6.8 trillion budget proposal in early March which included a plan to phase in a 30% tax on electricity used for Bitcoin (BTC) and cryptocurrency mining. Treasury Secretary Janet Yellen warned that failure to reach an agreement before June 5th would result in an “economic calamity” if the government defaulted.
House Rules Committee Passes Budget Proposal
After months of uncertainty, President Joe Biden announced over the weekend that he reached an agreement with Speaker of the House Kevin McCarthy (R-California) on a budget. On Tuesday, the House Rules Committee passed the proposal by a vote of 7-6 and now it will go to a full House vote planned for Wednesday.
Davidson: Negotiations Block Proposed Taxes
Congressman Warren Davidson (R-Ohio), who is vocal supporter of digital assets, said that one of the victories in negotiations was blocking proposed taxes including those directed at crypto mining operations. At time of writing, US debt stands at $31.8 trillion dollars making it clear why any deficit reduction measure is being taken seriously by both sides of Congress.
Crypto Community Reacts To Potential Mining Tax
The news has had mixed reactions from within the cryptocurrency community with some saying that such taxation could stifle innovation while others say that responsible regulation is key for mainstream adoption and growth within this space. Regardless, it appears as though any potential taxation measures have been blocked for now but further developments may yet come down the line when it comes to taxation within this space so stay tuned for more updates!
Conclusion
The proposed 30% tax on BTC and crypto mining has been squashed thanks to negotiations during debt talks between President Joe Biden and Speaker Kevin McCarthy (R-California). Congressman Warren Davidson (R-Ohio) says one victory was blocking this tax as well as other taxes being discussed during these talks.. Although not currently implemented, further developments could lead to taxation changes down the line so keep your eyes open!