Bipartisan negotiation benefits miners, Republican lawmakers: White House tax proposal blocked

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White House Proposes 30% Mining Tax

The White House proposed the "Digital Assets Mining Energy excise act" in early May, which calls for a 10% tax on electricity used by cryptocurrency mining companies starting in 2024, increasing to 30% by 2026.

The proposal emphasizes the responsibility that mining companies should bear for climate and environmental impacts, estimating that it could bring in $35 billion in tax revenue for the government.

While the White House has not provided further updates on the tax proposal, Republican lawmaker Warren Davidson from Ohio tweeted that the mining tax will not take effect.

Republican Lawmaker: Mining Tax Blocked

On May 29, Republican lawmaker Warren Davidson tweeted about the negotiation of the U.S. debt ceiling bill, responding to a cryptocurrency executive:

Yes, one of the victories we secured was blocking the tax proposal.

The U.S. Treasury Department has not responded to the situation regarding the "Digital Assets Mining Energy excise act," but a Republican official told Fortune that the debt ceiling negotiation has halted Biden's proposed $5 trillion tax plan.

Yes, one of the victories is blocking proposed taxes.

— Warren Davidson 🇺🇸 (@WarrenDavidson) May 29, 2023

Prior to this, Biden made strong statements at a post-summit press conference, saying he would not compromise on the budget blocked by Republicans, specifically mentioning that he would not protect wealthy tax evaders or cryptocurrency traders in tax policies.

Biden at G7 Summit: Calls Out Cryptocurrency Traders, Says No Compromise on Tax Policy

Both parties are close to reaching a consensus on the debt ceiling negotiation, with concessions from both sides, leading to dissatisfaction with the outcome. This also suggests some validity to Warren Davidson's claim of blocking the mining tax proposal.

Progress on U.S. Debt Negotiations: Both Parties Close to Consensus, Overview of Agreement Highlights and Left-Right Opinions