Senator Cynthia Lummis has released a report opposing the Biden administration’s proposed 30% excise tax on Bitcoin miners, arguing that it would harm the environment and the U.S. energy grid.
Points
- Senator Lummis opposes Biden’s 30% excise tax on Bitcoin miners
- Report titled Powering Down Progress: Why A Bitcoin Mining Tax Hurts America
- Highlights benefits of Bitcoin mining to the U.S. energy grid
- Argues tax would disincentivize sustainable energy use
- Discusses potential economic and environmental impacts
On July 23, Senator Cynthia Lummis released a report titled Powering Down Progress: Why A Bitcoin Mining Tax Hurts America, which argues against the Biden administration’s proposed 30% excise tax on the energy consumed by Bitcoin miners. The report puts the Bitcoin mining industry into sharper focus, highlighting its benefits to the U.S. energy grid and the potential negative impacts of the proposed tax.
Lummis cited the Bitcoin Energy and Emissions Sustainability Tracker, which suggests that up to 52.6% of Bitcoin mining might be emissions-free. She emphasized the role of Bitcoin mining facilities in securing the energy grid, pointing to efforts in Texas where miners sold 1500 megawatts of energy back to the grid during peak demand periods.
A 30% tax would hurt the environment that regulators claim to protect
Lummis argued that a 30% excise tax would discourage miners from seeking sustainable energy sources and novel energy recycling techniques. She cited examples like El Salvador’s use of volcanic energy and Finland’s use of excess heat from mining facilities to warm communities.
The Laffer Curve will get the final laugh
The senator concluded by discussing the Laffer Curve, which suggests that higher taxes could lead to reduced tax revenue by driving the industry out of the United States. She compared this to the 2021 mining ban in China, which drove out a majority of Bitcoin miners.
解説
- Environmental impact: The proposed tax could discourage sustainable energy practices in Bitcoin mining, contrary to regulatory goals.
- Energy grid benefits: Bitcoin mining can stabilize and support the energy grid, as evidenced by examples in Texas and other regions.
- Economic consequences: The Laffer Curve suggests that higher taxes could reduce overall tax revenue by pushing the industry out of the country.
- Global perspective: Comparing the U.S. situation to China’s 2021 mining ban highlights potential risks and economic impacts.