The True Cost of Cryptomining: White House Aims to Make Miners Pay with New Tax

The White House has proposed a new tax called the Digital Asset Mining Energy (DAME) excise tax, which would impose a 30% tax on the electricity used by crypto-mining firms.

According to a blog post by the White House, the tax is aimed at addressing the economic and environmental costs of crypto-mining, including local pollution, higher energy prices, and increased greenhouse gas emissions. The White House argues that crypto-mining firms do not currently pay for the full cost they impose on society.

Critics of the DAME tax argue that it will not effectively address the negative impacts of crypto-mining and could have unintended consequences. Some worry that the tax could push crypto-mining activity to other countries. Others argue that the tax may not generate significant revenue and could harm small businesses and individuals involved in crypto-mining.

Despite these criticisms, the White House argues that the DAME tax is necessary to ensure that crypto-mining firms pay their fair share of the costs they impose on society. The tax is estimated to raise $3.5 billion in revenue over 10 years and is just one example of the administration’s efforts to fight climate change and increase access to electrified options for all Americans.

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Read the full blog post on the proposed crypto-mining excise tax.