In a recent tweet, United States Senator Cynthia Lummis (Republican, Wyoming) again targeted President Biden’s 30% crypto mining tax. She said that the Biden administration is picking “winners and losers” in a proposal to tax cryptocurrency miners.
The Republican called Biden’s proposed 30 percent tax a “blatant attempt by the administration to pick winners and losers.” Further, she showed her support for the industry and showed her willingness to stand against Biden by saying:
I will not let President Biden tax the digital asset industry out of existence.
However, this is not the first time Lummis has stood against Biden’s 30% tax proposal. Last week, while attending the Bitcoin 2023 conference in Miami, the lawmaker spoke at length about how the proposed mining tax could have dire consequences for the nation.
At the conference, Lummis said that the mining tax could prove harmful to national security. She added that miners can mine anywhere but with the taxes, the national security would be in jeopardy and said that the tax ”isn’t going to happen.”
Lummis has been one of the biggest crypto advocates on Capitol Hill. In her tweet on Friday, the Republican lawmaker also talked of the conference and added that “America must welcome innovation and digital assets are the future of financial innovation.”
In March, the Biden Administration proposed a tax on crypto mining, citing the industry’s negative impact on the environment. The tax called the Digital Asset Mining Energy (DAME) excise tax, aims to make crypto companies accountable for their environmental impact, with the tax coming into effect after a phase-in period.
As stated, the tax would be equal to 30% of the cost of electricity used for mining. The tax would be implemented next year and phased in gradually over a period of three years at a rate of 10 percent a year to then reach the target 30% rate by the end of 2026.
While there has been an imminent political divide between the lawmakers of both political parties, the mining tax has been criticized by individuals from both sides. At the same Bitcoin conference, Robert F. Kennedy Jr., a Democrat lawmaker, rejected the idea of a mining tax and claimed it “requires an invasive surveillance apparatus to monitor what is happening in individual computers” and sets a bad precedent.
He also called it a bad idea and countered the concerns of energy consumption by saying that proposals for controls on cryptocurrencies and crypto mining have a political connection.
Crypto mining has been one of the biggest talks amongst entities across the globe. In particular, divisions amongst the regulators and the respective states in having individual stances, it has been one of the most stretched topics.
Notably, states like New York and North Carolina appear to be stricter than others. While North Carolina is discussing enforcing a moratorium on crypto mining, states like Mississippi and Monata are proceeding with mining-favoring legislative bills. However, with eventual discussions, the lawmakers need to come to a consensus on a bill that maintains a balance between innovation and environmental protection.