Debt Ceiling Deal Blocks 30% Proposed Tax On Crypto Mining

Late Saturday night, President Joe Biden and House Representative Kevin McCarhty reached an in principle deal to raise the debt limit of the US government. Both the political parties negotiated for months to reach this debt ceiling deal, which is yet to be officially passed.

US Congressman Warren Davidson confirmed that they successfully blocked some proposed taxes by the Biden administration in the deal, including a 30% proposed tax on crypto miner’s electricity bills.

Budget deal blocks Digital Asset Mining Energy excise tax

Earlier this month, Biden proposed the Digital Asset Mining Energy (DAME) excise tax to address the economic and environmental costs of current practices for mining crypto assets.  As per the proposed tax bill, after a phase-in period, firms would face a tax equal to 30 percent of the cost of the electricity they use in cryptomining. However, the proposed tax will not be implemented if the current budget deal sails through as it is. The final vote on the debt ceiling deal will be held on Wednesday. 

Republicans slam tentative debt ceiling deal

Several congressional Republicans expressed dissatisfaction with the tentative debt ceiling deal House Speaker Kevin McCarthy reached with President Biden. Republican lawmakers threatened to vote “no” on the debt ceiling deal despite fears of a catastrophic economic collapse in the US and globally.

On the heels of tentative debt ceiling deal news, bitcoin surged over 3% as it trades above $28,000 at the press time. The overall market is in green as Ethereum and other leading cryptocurrencies witnessed a surge over the weekend.