Senator Cynthia Lummis Pushes Back Against Biden’s Crypto Tax

US Senator Cynthia Lummis has pushed back against the Biden Administration’s proposal to tax cryptocurrency miners, stating that the administration is picking “winners and losers.”

Bitcoin mining is a very polarizing subject in the United States of America and has drawn considerable ire from the Biden administration.

A Harsh Tax Regime

Bitcoin mining has often drawn harsh criticism from governments thanks to its high energy consumption. In the latest example, the Joe Biden administration has outlined plans to impose harsh taxes on Bitcoin mining. According to reports, the tax in question is called the Digital Asset Mining Energy Excise Tax (DAME). It was proposed by the administration in its budget for the fiscal year 2024. Under the proposal, cryptocurrency mining firms would have to pay a tax equal to 30% of the cost of electricity consumed.

The tax would come into effect next year and be gradually phased in over a period of three years at a fixed rate of 10% per year until it reaches the targeted 30% by the end of 2026.

Significant Pushback

The proposal has been subject to furious pushback from prominent members of the cryptocurrency community, who have argued that the administration’s priorities are misplaced. However, prominent faces from the crypto community are not the only ones critical of the proposal. Robert F. Kennedy Jr, United States presidential candidate, has also roundly criticized the bill, calling it a “bad idea.” According to recent statements, Kennedy has chosen to publicly align himself with the Bitcoin community.

Another prominent voice against the proposal is that of Senator Cynthia Lummis, who has been vocal in her criticism of the bill. Lummis first spoke against the bill at the Bitcoin 2023 conference, telling the audience in attendance that the tax would not happen. She later tweeted about the conference and reiterated her opposition to the proposal, arguing that she would not let the government kill the crypto industry with taxes and oppose the proposal in Congress.

“America must welcome innovation, and digital assets are the future of financial innovation. A 30% tax hike on any specific industry is a blatant attempt by the administration to pick winners and losers. I will not let President

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Author: Amara Khatri

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