Crypto Mining Electricity Excise Tax Should Target AI Instead

The Biden administration's proposed Digital Asset Mining Energy excise tax on electricity used for crypto mining is administratively unworkable and a bad use of political will and attention. Instead, if the goal is to offset climate change, there are cheaper, higher-value targets such as taxing the electricity usage of data centers and artificial intelligence. AI requires significant amounts of electricity, making it a good place to start an excise tax that can be baked into the cost of doing business and offset future demand on the grid. Retargeting the DAME tax on electricity usage by data centers more generally avoids market distortion and is infinitely more future-proof.

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