New York Democratic Lawmakers Want Bitcoin Miners to Pay More Tax

New York lawmakers, led by Democratic Senator Liz Krueger and Assemblymember Anna Kelles, have proposed a bill to impose an excise tax on Bitcoin mining. This initiative is motivated by the excessive electricity consumption of crypto miners, which lawmakers claim raises electricity bills for ordinary residents. If enacted, the tax revenue would contribute to the state's Energy Affordability Programs, providing assistance to low- and moderate-income households. The proposed rates vary with energy consumption, with miners using up to 5 million kilowatt-hours facing a tax of 2 cents per kWh, while those over 20 million kWh would pay 5 cents per kWh. Miners using sustainable energy will be exempt to encourage environmentally friendly practices. Senator Krueger stated that the bill addresses the financial burden on New Yorkers and counters the additional costs that crypto mining incurs on the state's electricity infrastructure, estimated at $79 million for individuals and $165 million for small businesses annually. The proposed legislation aims not only to regulate the crypto industry but also to provide necessary relief to citizens facing rising utility costs.

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