Americans Could Use Bitcoin To Pay Federal Income Taxes If This New Bill Becomes Law
Americans could be nearing an era where they can use cryptocurrency, specifically Bitcoin (BTC), to pay their federal income taxes. This is after Republican House representative Matt Gaetz proposed a bill requiring the Internal Revenue Service (IRS) to accept Bitcoin as payment for taxes.
Rep Matt Gaetz Introduces Bill Allowing BTC Tax Payments
On Tuesday, Florida Republican Matt Gaetz unveiled a bill requiring the U.S. Secretary of the Treasury to create and implement a program to let U.S. residents pay personal income taxes via Bitcoin.
In particular, the proposed legislation seeks to amend the Internal Revenue Code of 1986 to accommodate this novel payment method. My groundbreaking legislation will modernize our tax system by allowing federal income tax to be paid with Bitcoin, Gaetz postulated.
In a statement, Rep. Gaetz said that the move was designed to foster innovation and efficiency while giving American citizens alternative ways to meet their tax obligations.
This is a bold step toward a future where digital currencies play a vital role in our financial system, ensuring that the U.S. remains at the forefront of technological advancement, he stated.
If the bill is passed, this program would need to address multiple crucial factors, including specifying when Bitcoin payments are deemed received and requiring the instantaneous conversion of BTC to its dollar equivalent after the transaction is complete.
Gaetzs legislative proposal was presumably influenced by El Salvadors pro-Bitcoin position. The Florida Republican recently visited the Central American nation during the second inauguration of President Nayib Bukele.
A Boost For Bitcoin Mainstream Adoption
The introduction of this bill marks a watershed moment in the mainstream adoption of Bitcoin in the United States. If it becomes law, it would mark a huge shift in how the federal government interacts with crypto assets, laying the foundation for wider acceptance and incorporation of Bitcoin and other cryptocurrencies in formal financial transactions.
The bill aligns with a soaring interest in cryptocurrency within U.S. politics. Ex-POTUS Donald Trump in recent days started accepting crypto donations for his campaign. Trump also recently proclaimed himself the crypto president and vowed to end President Joe Bidens war on crypto.
Notably, President Biden appears to be softening his stance on crypto, with reports indicating that officials from his government will attend a Bitcoin roundtable discussion in Washington DC next month.
Text source: ZyCrypto
