In a deal brokered by President Joe Biden and Republican House Speaker Kevin McCarthy to raise the US debt ceiling, one part is notably absent – a tax on cryptocurrency mining.
Over the weekend, Biden and McCarthy closed on a deal to raise the debt ceiling with plans to get Congress on board this week, according to CNN,
Treasury Secretary Janet Yellen warned McCarthy on Friday that if Congress did not raise or suspend the debt ceiling by June 5, treasury “There will be insufficient resources to meet the government’s obligations.”
Republican Representative Warren Davidson shared the 99-page bill on Twitter late Sunday, which would still require congressional approval.
Pierre Rochard, vice president of research at bitcoin mining company Riot Platforms, Inc., asked Davidson whether the Biden administration’s digital asset mining energy excise tax, or DEM, was gone because it was not in the bill.
Davidson confirmed that it had been removed.
Davidson responded to Rochard by saying, “Yes, one of the victories is stopping the proposed taxes.”
tax details
The tax was proposed in the administration’s budget for fiscal year 2024. march,
Under that proposal, companies would oppose a tax equivalent to 30 percent of the cost of electricity used.
The tax will be implemented next year and gradually increase at a rate of 10 percent per year over a three-year period to reach a target rate of 30 percent by the end of 2026, according to previous cryptonews reporting,
Sen. Cynthia Lummis, R-Vio. last week accused the Biden administration of picking “winners and losers.”
“I will not allow President Biden to tax the digital asset industry,” Lummis tweeted.
Lummis pushed back against the tax proposal for the first time last week bitcoin 2023 conference in miami.
He told the crowd about the tax, “It ain’t gonna happen.”