The US government’s debt ceiling deal with opposition leader Kevin McCarthy could also have the unintended consequence of defaulting the country.
Namely, block the proposed 30 percent tax on energy consumption in crypto mining. reported Cointelegraph quoted Ohio State Assemblyman Warren Davidson.
US lawmakers recently released a draft of the proposed legislation after talks with President Joe Biden and the Speaker of the House. The House of Representatives approved the bill on May 31.
This allows the US government to further raise the debt ceiling. This is the highest level of fraud allowed by the US Treasury.
Prevent economic disaster
The bill suspends the debt ceiling for two years, allowing the government to continue borrowing to pay off legacy debt. The president had called for tax increases for high-income individuals and businesses, but that would not be the case under the latest draft.
Davidson said the bill eliminates several potential taxes, including a 30% tax on electricity used to mine bitcoin and other cryptocurrencies. The US government has proposed them as part of the 2024 budget.
If the tax is adopted as planned, crypto miners will face a 10% tax increase each. This will add to the electricity generated in 2024, 2025 and 2026 used for mining.
Harsh criticism of mining tax
After negotiations, the president admitted that the deal was a compromise and that “nobody got everything they wanted.” However, it did accomplish its goal of preventing a default, which would have been the first time in US history.
Many crypto companies have been critical of the US government and mining tax proponents. One of them is former crypto exchange Kraken executive Dan Held, who has spoken out in support of the debt ceiling legislation.
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