The Inflation Reduction Act that went into effect on January 1st, 2023. It has introduced several new taxes aimed at certain corporations and industries that could also affect the crypto market.
Indeed, these new taxes are expected to have a significant impact on the crypto industry, which has been growing in popularity as a decentralized alternative to traditional financial systems.
The Inflation Reduction Act and Crypto
The five new taxes introduced by the Inflation Reduction Act will likely result in higher prices for various products and services. This will likely affect every person living in the US.
The first tax is a regressive tax on American oil and gas development. It is expected to increase the cost of household energy bills. The tax could drive up the price of natural gas and electricity, which will impact the cost of living for many families.
The second tax is a 16.4 cents-per-barrel tax on crude oil and imported petroleum products. It will also lead to higher gas prices. Finally, the third tax is a significant increase in the tax rate on coal mining. It is expected to result in higher electricity bills.
In addition to these taxes, the Inflation Reduction Act also has a broader impact on the economy. It essentially increases the cost of doing business. This increase in cost will likely result in higher prices for goods and services, which will impact consumers directly.
The crypto industry is expected to be impacted by these new taxes in several ways. For one, the increased cost of doing business will likely result in higher fees for cryptocurrency exchanges. This will make it more expensive for individuals to trade and store their digital assets. Additionally, the increased cost of energy could make it more expensive for crypto miners to validate transactions and earn rewards for their efforts.
Despite the potential challenges posed by the Inflation Reduction Act, the cryptocurrency industry is likely to continue growing. This is due to the increasing recognition of cryptocurrencies as a legitimate form of currency, as well as their decentralized and secure nature.
The Inflation Reduction Act and its new taxes have far-reaching implications for the US economy and the cryptocurrency industry. While there are potential challenges, the cryptocurrency industry is expected to continue growing in popularity as a decentralized alternative to traditional financial systems.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.