Negotiations over the new debt deal squashed the Biden Administration’s plan to phase in a 30% tax on the electricity used in Bitcoin (BTC) and crypto mining.
Congressman Warren Davidson (R-Ohio), a vocal supporter of digital assets, says on Twitter that “one of the victories” of the negotiating process was blocking proposed taxes, including the crypto mining proposal.
The Biden Administration’s mining tax was included in a $6.8 trillion budget proposal released in early March.
After months of uncertainty, President Joe Biden announced over the weekend that he reached an agreement with Speaker of the House Kevin McCarthy (R-California) on a budget.
President Biden urged both chambers of Congress to pass the bipartisan agreement before June 5th, the day Treasury Secretary Janet Yellen said the government would run out of cash.
On Tuesday, the House Rules Committee passed the proposal by a vote of 7-6. The full House of Representatives plans to vote on the bill on Wednesday, and then it will go to the Senate, the Associated Press reports.
Yellen has previously warned that the US could plunge into an “economic calamity” if the government fails to reach an agreement before the country defaults.
At time of writing, the US is $31.8 trillion in debt.
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