President Joe Biden’s proposed 30% tax on crypto mining and Bitcoin mining has drawn criticism from Robert F. Kennedy Jr., a member of the well-known American political family and the most recent candidate for president, who called it a “bad idea”.
Cryptocurrencies, led by bitcoin, along with other crypto technologies are a major innovation engine. It is a mistake for the U.S. government to hobble the industry and drive innovation elsewhere. Biden’s proposed 30% tax on cryptocurrency mining is a bad idea. 🧵
— Robert F. Kennedy Jr (@RobertKennedyJr) May 3, 2023
According to Kennedy, the U.S. government shouldn’t stifle the industry or encourage innovation elsewhere because cryptocurrencies like Bitcoin act as a significant innovation engine. The politician acknowledged the issues with energy use but asserted that video games, which are not subject to similar requests for bans or taxes, use just as much energy as Bitcoin mining.
He maintained,
“Yes, energy use is a concern (though somewhat overstated), but Bitcoin mining uses about the same as video games, and no one is calling for a ban on those.”
Cryptocurrency miners, according to the US government, allegedly consume a lot of energy without paying for “the costs and impacts their activities impose on others.”
The U.S. claims that this cost is experienced in the form of increased energy prices and environmental damage. In order to hold cryptocurrency mining companies responsible for their energy use, the government suggested the DAME tax, which would require them to pay taxes equal to 30% of the electricity expenditures they incur while mining cryptocurrencies or other digital assets.
However, the general public believes that the 30% tax demand is an unusual levy that might put at risk the revenues of such growing sectors. Local environmental pollution, greater energy costs, and the wide-ranging effects of greenhouse gas emissions on the climate are some of the expenses that are mentioned.
U.S Government’s Decision Was Politically Driven
While this update sparked reactions from the crypto community, Robert Kennedy Jr. had more to say about it. Kennedy claimed that efforts to regulate cryptocurrencies and cryptocurrency mining are politically driven. Arguments against Bitcoin’s high energy use, according to him, are only a “selective pretext” to contain challenges against elite power systems.
In addition, he contended that the availability of Bitcoin and several other currencies in addition to the U.S. dollar would strengthen the resilience of the American economy.
Kennedy added that, in contrast to some detractors, Bitcoin is not only used by “criminals who want privacy.” The government’s ability to regulate bank accounts and payments, he claimed, may make using Bitcoin necessary for both ordinary citizens and political dissidents.
