The latest reports from the Council of Economic Advisers (CEA) suggest the White House is pushing for a Digital Asset Mining Energy (DAME) tax following its negative environmental impact.
The proposed tax framework has since triggered an uproar among industry stakeholders, with Satoshi Action Fund CEO Dennis Porter describing the move as “unfair and discriminatory.” He added that a 30% tax policy would shift the bulk of Web3 jobs and growth out of the country despite the U.S. being the largest hash rate provider for BTC.
“Imagine if we put a 30% tax on internet companies in the ’90s,” said Porter. “It would have ensured all the jobs and economic growth occurred outside the USA.
https://coingeek.com/
This law will be a big blow to the bitcoin section and some states that rake high income from miners will be negatively affected. Although these states are bitcoin-friendly they will be powerless. Based on the legal doctrine of preemption the federal government has the power to reduce and eliminate any state law that conflicts with federal laws. But these states can challenge this unfavorable law in court. They can file a lawsuit seeking to pray the court to declare such a law unconstitutional. The proposed tax framework has since triggered an uproar among industry stakeholders, with Satoshi Action Fund CEO Dennis Porter describing the move as “unfair and discriminatory.” He added that a 30% tax policy would shift the bulk of Web3 jobs and growth out of the country despite the U.S. being the largest hash rate provider for BTC.
“Imagine if we put a 30% tax on internet companies in the ’90s,” said Porter. “It would have ensured all the jobs and economic growth occurred outside the USA.
https://coingeek.com/
If the law is enforced, the best option for miners will be to leave the US territory to other lenient countries. Africa would have been a good destination if not for the lack of basic infrastructure such as constant and cheap power supply.
