White House proposes 30 percent tax on electricity used for crypto mining

I’d be happier with a 99% tax on crypto mining, however I don’t see how this could enforced.

Actual text of proposal:

...

Any firm using computing resources, whether owned by the firm or leased from others, to mine digital assets would be subject to an excise tax equal to 30 percent of the costs of electricity used in digital asset mining.

Firms engaged in digital asset mining would be required to report the amount and type of electricity used as well as the value of that electricity, if purchased externally. Firms that lease computational capacity would be required to report the value of the electricity used by the lessor firm attributable to the leased capacity, which would serve as the tax base. Firms that produce or acquire power off-grid, for example by using the output of a particular electricity generating plant, would be subject to an excise tax equal to 30 percent of estimated electricity costs.

Except as otherwise provided by the Secretary, the term “digital asset” means any digital representation of value which is recorded on a cryptographically secured distributed ledger or any similar technology as specified by the Secretary.

The proposal would be effective for taxable years beginning after December 31, 2023. The excise tax would be phased in over three years at a rate of 10 percent in the first year, 20 percent in the second, and 30 percent thereafter.

...

From: https://home.treasury.gov/system/files/131/General-Explanati...

It's a smart idea. Who is going to have sympathy for crypto miners? As a citizen, would you rather a Watt of power go to driving an industrial facility, heating a home, or making a Shibacoin? For most it's a very easy calculus.

Either they pay up, in which case there's a new revenue stream, or they don't, in which case energy prices will go down due to the lowering of demand. A win for the general public and an easy sell. Who said policy was boring?

Wonder how fast it will be copied elsewhere.

So would they tax all the electricity that company uses or just the electricity used for mining? The article isn’t very clear on the specifics.

Yes, and while I'm pro-ETH, I'd prefer if Ethereum doesn't surpass Bitcoin as a result of the government abandoning fairness and neutrality, and discriminating agaist some uses of electricity over others.