On May 2, 2023 the Biden administration announced a tax proposal to control how some Americans use electricity.
The Biden administration wants to tax those that crypto mine because they use electricity.
“Cryptomining is a process for validating transactions among holders of crypto assets to record and transfer cryptographically secured assets on a distributed ledger by, for example, using computing equipment to perform calculations to select the validator (White House 2022),” the White House claimed. “Currently, cryptomining firms do not have to pay for the full cost they impose on others, in the form of local environmental pollution, higher energy prices, and the impacts of increased greenhouse gas emissions on the climate. The DAME tax encourages firms to start taking better account of the harms they impose on society.”
To be clear, the administration admitted this has nothing to do with cost or revenue. It’s about controlling behavior.
“The environmental impacts of cryptomining exist even when miners use existing clean power,” the Biden administration added. “For example, in the case of communities with hydropower where cryptomining operations are often located, increased electricity consumption by cryptominers reduces the amount of clean power available for other uses, raising prices and increasing overall reliance on dirtier sources of electricity.”
They admit that the policy would force miners to operate overseas and then praise China for its energy policy.
“Although the potential for cryptomining to relocate abroad—such as to areas with dirtier energy production—is a concern, other countries are also increasingly moving to restrict crypto asset mining. China banned such activity completely in 2021, as have eight other countries; three Canadian provinces also have announced or enacted cryptomining moratoriums.”
Remember in October of 2009 when then-President Obama announced a $3.4 billion grant for electric companies to change their electric meters to “smart meters?”
The program aimed to “promote energy-saving choices for consumers, increase efficiency, and foster the growth of renewable energy sources like wind and solar.”
Meters installed allow power companies to regulate your thermostat and other functions. For example, in September of 2022, residents were furious when a Colorado power company locked customers out of their air conditioning during a heat wave.
Private companies forcing a fee on crypto miners is one thing, but it’s another ballgame when the government gets involved.
The Biden administration says the tax will force “start having cryptominers pay their fair share of the costs imposed on local communities and the environment.”
It may not be long before home dwellers with a certain square footage will have to pay a tax for on the amount of electricity they use because they are privileged enough to be in a residence of that size.
Don’t think you’re safe if you have solar since you are privileged enough to contribute to the electrical grid consider that a donation to the state.
I mean, how long before those with good credit scores that allow them good rates for a mortgage have to pay a “tax” to subsidize those with poor credit? Oh, wait…that’s already happened.
It’s not like the administration would ever propose a ban on a kitchen appliance only to have a blue state impose it for them.
Oh wait…that happened too.
We weren’t kidding when we warned that the Biden Administration has focused on one thing.
