Bitcoin (BTC) miners: Joe Biden wants to tax their electricity by +30%

Haro on crypto miners! – If the majority of governments still do not like Bitcoin (BTC) and decentralized cryptocurrencies, on the other hand, they love tax them. In the United States, we had a first taste of the 2024 budget plan Of the president Joe Biden. But it turns out – now that this plan has been revealed in full – that crypto players will be even more taxed than we thought.

The electricity of bitcoin and crypto miners soon to be overtaxed?

This time, that’s it, the budget plan for the year 2024 was officially published by the White House. And as we’ll see, it turns out worse than expected for taxation crypto-asset enthusiasts.

In addition to the general increase in levies on capital gains on all assets, and the specific inclusion of digital assets in the restrictive regulation of “wash sales” (see our previous article), a new tax against minors of bitcoins and other cryptocurrencies could see the light of day.

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10% surcharge from 2024, then up to 30% in the following 2 years

This additional tax would more specifically concern electricity consumed by minors. It would be, in this ” proposal » makes them pay a surcharge ranging from +10% on their electricity costs from 2024. Then by an additional 10% in 2025, and again in 2026.

“Any business using computing resources, whether owned or leased from third parties, to mine digital assets would be subject to an excise tax equal to 30% of the cost of electricity used for mining. digital assets. (…) The proposal would apply to tax years beginning after December 31, 2023. The excise tax would be phased in over three years, at a rate of 10% in the first year, 20% in the second year and 30% afterwards. »

If this new taxation were to come into effect, cryptocurrency miners present in the United States (whether American or foreign) would become suddenly less competitive. Because after the initial acquisition of the mining machines, the electricity consumption remains of course the main cost production of crypto-miners. I’electricity is the real sinews of war in the competition for bitcoin mining globally. Joe Biden therefore wants to draw a real bullet in the foot crypto-asset miners based in the USA.

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