Gaetz’s suggestion for tax payments in bitcoin
Matt Gaetz, a Republican congressman from Florida, has proposed a new bill that would permit the payment of federal income taxes using Bitcoin. This pending legislation, which was initially reported by the Daily Wire, seeks to modify the 1986 Internal Revenue Code. It instructs the Secretary of the Treasury to create a strategy for accepting Bitcoin.
The bill stipulates that the Secretary should create and apply a process that allows individuals to pay taxes with bitcoin for any levies under this title. According to the bill, the Secretary should set forth rules, as they see fit, to facilitate the acceptance of bitcoin payments. These regulations should include guidelines on when such form of payment will be acknowledged, and mandate the immediate conversion of any received bitcoin amount into its equivalent in dollars at the end of every transaction.
In a conversation with The Daily Wire, Gaetz said: “By affording taxpayers the opportunity to utilize Bitcoin for federal tax payments, we could stimulate innovation, enhance efficiency, and provide greater flexibility for the people of America. This signals a daring progression into a future where digital currencies hold a fundamental position in our financial structure, guaranteeing that the U.S. continues to lead in technological advancement.”
Brian Armstrong, the CEO of Coinbase, has also recently convened with senators from both the Democratic and Republican parties in Washington, D.C., to talk about establishing explicit regulations for the cryptocurrency sector.
This declaration is a result of recent increased backing of Bitcoin among US politicians. Candidates for presidency Donald Trump and Robert F. Kennedy Jr. both approve Bitcoin transactions, and it’s mentioned that discussions are ongoing about the Biden campaign accepting cryptocurrency donations as well. Officials from Biden’s administration are projected to join a Bitcoin roundtable in Washington D.C., which has been organised by Congressman Ro Khanna as a reaction to Donald Trump’s endorsement of Bitcoin and his promise “to ensure that the future of crypto and the future of Bitcoin will be constructed in America”.
Increasing political backing for bitcoin.
A few weeks previously, Thomas Massie, a US Congressman, announced that he had chosen to propose a legislation to terminate the Federal Reserve, following his reading of The Bitcoin Standard book.
Gaetz’s proposal, as he describes it, is intended to bring the tax payment procedure up-to-date by permitting the use of Bitcoin for federal income tax payments.
The proposed law would necessitate the Secretary of the Treasury to develop rules for Bitcoin acceptance, detailing when payments are deemed received and insisting on immediate conversion of Bitcoin into its dollar value. The legislation also encompasses terms for managing associated non-tax issues, contracts, costs, and accountability.
