United States residents may gradually be nearing an era where they can finally utilize cryptocurrency, precisely Bitcoin (BTC) to offset their federal tax.
Bitcoin for Tax Adoption in U.S. Eyeing History
A new bill that would allow U.S. residents to pay federal income tax in Bitcoin has been proposed by US Congressman Matt Gaetz.
BREAKING: 🇺🇸 US Congressman Matt Gaetz introduces bill to allow federal income tax to be paid with #Bitcoin pic.twitter.com/mcflCTQejI
— Bitcoin Magazine (@BitcoinMagazine) June 25, 2024
Noteworthy, Gaetz is one of the Bitcoin Marxists who believes strongly in the role that digital assets will play in the future of finance. The consideration of this bill will amount to an amendment of the Internal Revenue Code of 1986 to accommodate Bitcoin as an alternative for taxpayers.
According to the Florida representative’s legislation, the amendment requires that Treasury “develop and implement a method to allow for the payment with Bitcoin of any tax imposed on an individual.”
Noteworthy, the implementation of this Gaetz’ bill could be a game changer for Bitcoin adoption in the United States. At the same time, it would help the Treasury focus on digital asset implementation in the region. While speaking to the press, Gaetz highlighted the benefits embedded in adopting his Bitcoin bill. He mentioned that it could promote innovation, increase efficiency, and offer more flexibility to American citizens.
Gaetz’s proposal was likely influenced by El Salvador’s Bitcoin stance. He recently visited the country during Nayib Bukele’s reinstatement as president. Bitcoin is already accepted as payment for state tax in places like Colorado.
U.S. Politicians Propose Bill’s Supporting Bitcoin
There are several Bitcoin bills waiting for approval from the appropriate authorities. In March, Oklahoma passed a landmark bill aimed at safeguarding the fundamental rights of Bitcoin users. The Bill was Spearheaded by Rep. Brian Hill and backed by the Oklahoma Bitcoin Association. It promised extensive protection for Bitcoin users within the state. It later received an overwhelming 81-1 vote in the State House in its support.
Similarly, Senator Cynthia Lummis was seen urging members of the Senate to vote YES on the legislation that allows highly regulated financial firms to provide custody services for Bitcoin and other cryptocurrencies. Notably, this is against Senator Elizabeth Warren‘s call to the same Senate. She is very concerned about the safety and security of digital assets in the hands of financial institutions.
Generally, both opposing and supporting opinions underscores the growing interest of politicians in the crypto industry.
Read More: Hong Kong ETF Investors Buying Bitcoin As US Spot Bitcoin ETFs Record Outflow
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