U.S. Crypto Mining Tax: White House Council of Advisers Bats for 30% Levy

The White House Council of Economic Advisers (CEA) is again advocating for a 30% Digital Asset Mining Energy (DAME) tax on electricity consumed by U.S. crypto miners. President Joe Biden is looking to impose this punitive tax on crypto mining operations for the “harms they impose on society,” according to the Council.

A recent statement from the White House's Council of Economic Advisers (CEA) has brought the proposal back to light, arguing that crypto-mining firms do not pay the full cost they impose on local communities and the environment.

On Tuesday, May 2, the White House’s Council of Economic Advisers contended that the Digital Asset Mining Energy [DAME] excise tax “encourages firms to start” using more sustainable energy sources.

Why a 30% Crypto Mining Tax?

The White House is pushing to tax cryptocurrency miners to “pay their fair share” for the costs inflicted on local communities and the environment. The cryptocurrency mining tax proposes implementing a phased-in 30% excise tax on the power that cryptocurrency miners consume. This proposed 30% excise tax on cryptocurrency mining firms was the focus of a report released by the White House on Tuesday, in which the administration reiterated its stance.

The White House's Council of Economic Advisers, an agency within the Executive Office of the President charged with providing objective economic advice, has advocated for the DAME tax in a blog post, published on [Date of Blog Post].

The White House believes this DAME tax will incentivize crypto mining firms to operate more sustainably and reduce their environmental impact. The CEA argues the Digital Asset Mining Energy (DAME) tax is essential.