Senator Cynthia Lummis has opposed a proposed 30% energy excise tax on Bitcoin miners, as detailed in her report “Powering Down Progress: Why A Bitcoin Mining Tax Hurts America.” This tax, proposed by the Biden Administration, aims to address environmental concerns but could harm the U.S. Bitcoin mining industry that flourished after China’s ban on mining.
Lummis argues that this tax could push the industry overseas and is based on outdated views about energy use. She cites data showing that up to 52.6% of Bitcoin mining is emissions-free and compares its energy use to that of common household appliances. Additionally, she highlights the role of Bitcoin mining in stabilizing energy networks.
The tax is set to phase in starting at 10% in 2025 and reaching 30% by 2027, applying even to off-grid energy sources. Lummis believes this could stifle innovation in sustainable energy. Historically, American miners have significantly increased their energy consumption, equating to the entire state of Utah.
If the tax is not implemented, the U.S. could maintain its leadership in the digital economy and attract high-tech investments. This strategic move could solidify America’s position in global technological advancements.
