Bitcoin miners in the United States face a potential predicament as CEO of Marathon Digital, Fred Thiel, warns about US President Joe Biden’s proposed tax policy. The implementation of new taxes targeting American Bitcoin miners may lead to unintended consequences, according to Thiel. He emphasizes that such a move could inadvertently drive miners to relocate their operations outside the country.
Biden’s administration recently announced a tax proposal targeting the operations of Bitcoin miners. The White House Council of Economic Advisers proposed a penalty that could severely impact mining companies’ profits. Under this proposal, miners would be subjected to a tax equivalent to 30% of their energy expenses. The CEA argues that the industry currently enjoys unfair financial advantages as it evades responsibility for covering the full costs associated with pollution, carbon emissions, and higher energy prices.
However, Thiel raises concerns about the potential repercussions of implementing such a tax. He disputes the notion that the tax would result in a shift towards renewable power sources and suggests that it could fail to incentivize greater adoption of environmentally friendly energy solutions. Speaking at the Bitcoin 2023 conference in Miami, Thiel expressed his apprehension regarding the consequences of the tax proposal, suggesting that it would prompt Bitcoin miners to relocate their operations outside the United States.
The excise tax proposal for Bitcoin miners faces an uncertain fate. The Biden administration introduced the proposal in an effort to generate revenue. The document published by the US Treasury Department on March 9 outlines the administration’s proposed measures and priorities for funding over the upcoming year. However, such proposals often undergo modifications as Congress finalizes the nation’s spending plans, leaving the fate of this particular tax proposal uncertain. The proposed excise tax is projected to yield approximately $3.5 billion in revenue over the course of the next decade. While the administration aims to secure substantial funds through this tax, its ultimate fate will be determined through the unpredictable nature of the legislative landscape.
It is important to note that Thiel’s concerns about Bitcoin miner relocation outside the US may have potential implications for the industry. However, the implementation of the proposed tax and its potential impact on Bitcoin mining operations remain to be seen.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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