Ohio lawmaker says deal to prevent US debt default eliminates proposed 30% crypto mining tax
According to Ohio Rep. Warren Davidson, a tentative deal has been made to prevent the United States government from defaulting on its debts. This deal would likely remove a proposed tax on the energy usage of cryptocurrency miners.
The draft of a bill was released on May 28, which would allow the U.S. government to increase the debt ceiling following negotiations with President Joe Biden and House Speaker Kevin McCarthy. The proposed bill would suspend the debt ceiling for two years, allowing the government to continue to borrow money and settle its debts. President Biden reportedly wanted the deal to include tax increases for corporations and high-income individuals, but this was deemed unlikely in the most recent draft.
Davidson said in a tweet that the bill blocked “proposed taxes,” including a 30% tax on electricity used by cryptocurrency miners that had been suggested as part of President Biden’s FY2024 budget. The bipartisan deal suggested that lawmakers were moving forward, but the debt ceiling bill still faces a divided House of Representatives, with many Republican lawmakers openly hostile to Speaker McCarthy.
The U.S. government is expected to meet and vote on the legislation on May 31.