Council proposed to introduce the tax in stages over three years, starting with 10% next year. In 2025 to increase the tax to 20%, and then to 30%.
The proposed tax on cryptocurrency mining is expected to add about $3.5 billion to the state’s coffers over ten years.
Thanks to DAME miners will be more aware of the harm they do to society, CEA believes.
CEA explained that the high consumption of electricity by miners has a negative impact on the environment, the power grid and even on people’s quality of life..
The CEA claims that mining companies increase greenhouse gas emissions into the atmosphere and raise electricity prices because of their activities, while the miners are not being compensated for the damage they cause.
Last September, the White House released a report showing that cryptocurrency miners use more energy than all of Australia: between 0.9% and 1.7% of total electricity consumption in the United States;
Tom Mapes, head of energy policy at the Chamber of Digital Commerce, said the tax would be another way for authorities to pressure the industry, which officials see as a threat.
“The U.S. authorities just don’t like the industry, and they’re looking for any way to clip its wings,” the crypto-enthusiast put it.
Economist James Broughel criticized the White House proposal, saying it would make more sense to tax greenhouse gas emissions from mining cryptocurrencies rather than electricity use itself..
It doesn’t make sense to make companies pay a tax if they use renewable energy, Broghel resents.
Earlier, MicroStrategy founder Michael Saylor supported the miners, saying they were lowering citizens’ electricity bills and using excess energy that would have been wasted.