The US Will Consider a Bill on Paying Income Tax in Bitcoins
Date: 2024-06-27 Author: Henry Casey Categories: IN WORLD
On June 25, 2024, a bill was introduced in the US Congress that, if passed, would allow citizens to pay federal income taxes with Bitcoin. The author of the initiative was Republican Matt Gaetz. The move aims to modernize the country's tax system and support innovation.
Purpose of the Initiative
Gaetz said his bill aims to improve the efficiency of the tax system and provide citizens with greater flexibility. According to him, using Bitcoin to pay taxes will promote innovation and improve service to taxpayers.
"My groundbreaking legislation modernizes our tax system. By allowing taxpayers to use Bitcoin to pay taxes, we are promoting innovation, increasing efficiency, and offering greater flexibility to our citizens," said Matt Gaetz.
In his cover letter, Gaetz mentioned his visit to El Salvador for the second inauguration of President Nayib Bukele, where he oversaw the integration of Bitcoin into the country's financial system. Gaetz said the experience inspired him to develop legislation that could bring similar benefits to the United States.
Requirements and Amendments
To implement the bill, approval will be required from US Treasury Secretary Janet Yellen, who will have to make appropriate amendments to federal legislation. If the initiative is approved, it will also pave the way for other taxes and fees to be paid using crypto assets.
Currently, the only state that allows taxes to be paid using cryptocurrency is Colorado. However, here you can only use cryptocurrency to pay local fees, not federal taxes.
Opinions and Discussions
Consensys previously called on the IRS to delay the implementation of a new form of accounting for crypto transactions, arguing that it would create a significant financial burden for brokers. This highlights the need for careful consideration and debate of the bill to avoid potential complications and additional costs for taxpayers and businesses.
If passed, the bill would be a significant step forward in integrating cryptocurrencies into the formal US financial system. Matt Gaetz's initiative could be an important example of how digital technologies can modernize and improve traditional systems of government and taxation.
