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Debt Ceiling Deal Blocks 30% Proposed Tax On Crypto Mining, Confirms Congressman

The tentative debt ceiling deal blocks the 30% proposed tax on crypto mining that was put forward by Biden administration.
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Debt Ceiling Deal Blocks 30% Proposed Tax On Crypto Mining, Confirms Congressman

Late Saturday night, President Joe Biden and House Representative Kevin McCarhty reached an in principle deal to raise the debt limit of the US government. Both the political parties negotiated for months to reach this debt ceiling deal, which is yet to be officially passed.

US Congressman Warren Davidson confirmed that they successfully blocked some proposed taxes by the Biden administration in the deal, including a 30% proposed tax on crypto miner’s electricity bills.

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Budget deal blocks Digital Asset Mining Energy excise tax

Earlier this month, Biden proposed the Digital Asset Mining Energy (DAME) excise tax to address the economic and environmental costs of current practices for mining crypto assets.  As per the proposed tax bill, after a phase-in period, firms would face a tax equal to 30 percent of the cost of the electricity they use in cryptomining. However, the proposed tax will not be implemented if the current budget deal sails through as it is. The final vote on the debt ceiling deal will be held on Wednesday. 

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Republicans slam tentative debt ceiling deal

Several congressional Republicans expressed dissatisfaction with the tentative debt ceiling deal House Speaker Kevin McCarthy reached with President Biden. Republican lawmakers threatened to vote “no” on the debt ceiling deal despite fears of a catastrophic economic collapse in the US and globally.

On the heels of tentative debt ceiling deal news, bitcoin surged over 3% as it trades above $28,000 at the press time. The overall market is in green as Ethereum and other leading cryptocurrencies witnessed a surge over the weekend.

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Jai Pratap

Jai Pratap is a Crypto and Blockchain enthusiast with over three years of working experience with different major media houses. His current role at CoinGape includes creating high-impact web stories, cover breaking news, and write editorials. When not working, you'll find him reading Russian literature or watching some Swedish movie.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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