Biden proposes 30% tax on crypto mining

Corporate Tax Increases & Incidence

• Debate over whether higher corporate taxes are “passed on” to consumers.
• Some argue profit taxes don’t mechanically translate to higher prices because firms still maximize profit at the same demand-determined price.
• Others say in practice tax hikes act as a coordination signal for industry-wide price increases and ultimately reduce investment returns and competitiveness.
• Disagreement over statutory vs. effective corporate tax rates; some note the U.S. effective rate is around the OECD average, so a higher statutory rate may not be as extreme as claimed.

Crypto Mining Electricity Tax: Fairness & Enforcement

• Proposal: 30% excise tax on electricity used for digital asset mining.
• Critics see this as arbitrary and “ridiculous,” asking why other “wasteful” luxuries (yachts, jewelry, meat, private jets) are not similarly targeted.
• Supporters reply that such luxury or targeted taxes already exist or are reasonable policy tools.
• Enforcement questions: how to attribute electricity when mining is mixed with other workloads; suggestions that regulators would use accounting records and broad rules, not perfect technical measurement.

Environment, Externalities & Bans

• Some say crypto mining should be outright banned due to environmental harm, calling proof-of-work “planet burning” and a pure waste since total block output is independent of energy spent.
• Others counter that all currencies are socially constructed, and electricity use is justified if the system is more valuable than the power consumed.
• Argument that negative externalities of electricity should be handled via general carbon/energy taxes, not crypto-specific penalties.

Grid Stability & “Flexible Load” Argument

• Pro-mining voices claim mining can stabilize grids by acting as instantly curtailable load, especially for renewables and stranded or overproduced power.
• Examples given of miners funding substation upgrades and being paid to shut down during peaks; critics call this extortion and say better uses (e.g., desalination) exist, though those are less portable and financeable.

Offshoring & International Policy

• Many note the tax would likely push mining offshore, reducing U.S. grid demand but not global emissions.
• Some see this as still a win for the U.S.; others prefer bans plus letting other countries bear the “dead weight loss.”
• Parallel drawn to carbon border adjustment mechanisms as a way to export environmental standards.

Crypto vs. Fiat & Purpose of Crypto

• Disagreement on why crypto exists:
  • One side cites hyperinflation and desire to escape government-controlled money; others say the original Bitcoin paper focused on trustless, irreversible online payments.
  • Critics argue crypto is “more fiat than fiat,” with no link to real-world value and high energy destruction; defenders highlight fixed supply and use in failed-currency contexts.

Alternative Policy Ideas & Meta

• Some suggest a general carbon tax/credits system would be cleaner than targeted crypto taxes.
• Discussion notes that the linked source is not viewed as neutral, and that the HN submission title was more editorialized than the article’s actual title.