Saturday, September 30, 2023

Deal excludes 30% tax on cryptocurrency mining to avoid US debt default, Ohio lawmaker says

A tentative settlement aimed at preventing the US government from defaulting on its loans is likely to remove a proposed tax on energy use by cryptocurrency miners, according to Ohio Representative Warren Davidson.

On May 28, US lawmakers released a draft bill that would allow the government to raise the debt ceiling – a limit on the amount of debt the Treasury Department can spend – After talks with President Joe Biden and House Speaker Kevin McCarthy. The law still needs congressional approval before it can go into effect, avoiding an obvious economic catastrophe for the US government.

As per the proposed bill, There would be a two-year suspension of the debt ceiling, allowing the US government to borrow money and pay down its debt, President Biden apparently wanted to include some tax increases for business and high-income individuals, but the most recent draft suggested that was unlikely.

In a May 28 tweet, Rep. Davidson Said He The bill blocks “proposed taxes,” including a 30% tax on electricity used by cryptocurrency miners, that was suggested as part of President Biden’s fiscal year 2024 budget. If the latter were to pass, miners could face a 10% tax increase every year for three years on electricity they generate after 2024.

“The settlement (…) represents an agreement, which means that nobody got everything they wanted,” announced President Biden after talks. “The settlement averts the worst possible crisis, a default, for the first time in our nation’s history.”

many people in the industry had criticized The threat of loan default became a problem long before the White House and supporters of the mining tax. Some bitcoiners, such as Dan Held, former development leader at Kraken, Praised Bill on debt ceiling.

The US government isn’t completely out of the woods with a default date of June. ToAlthough the bipartisan agreement shows that lawmakers are making progress, the debt ceiling bill still faces a divided House of Representatives, with many Republican lawmakers openly hostile to President McCarthy., The governing body is expected to meet on May 31 and vote on the legislation.

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Nation World News Desk
Nation World News Desk
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