Bitcoin was plunging southward yesterday, but now it’s trading above $62,000 again. Global regulations concerning crypto are on governments’ agendas. For example, today the Turkish Grand National Assembly is discussing a bill focused on crypto exchanges and anti-money laundering. So, what’s happening in the US?
Paying Taxes with Bitcoin
It sounds interesting but not entirely absurd. Various payment solutions enable shopping in BTC with instant conversion. As long as governments worldwide allow it, shopping with BTC and other cryptocurrencies is possible. Even El Salvador has recognized it as an official currency.
US Congressman Matt Gaetz has proposed allowing tax payments in BTC. These days, crypto is a hot topic in the US. PAC gathered signatures from 1 million people, and with the US elections approaching, no one wants to ignore the desire of 1 million voters for a crypto-friendly government. The recent ETH ETF approval was a result of this sentiment.
Politicians are taking crypto-friendly steps to gain support in their constituencies as the November elections approach.
Details of the Proposal
Matt Gaetz proposed a bill to allow federal income tax payments in BTC. If taken seriously, this bill would be a significant step towards crypto acceptance in the US. With the legitimacy gained from the ETF approval, if Bitcoin is also accepted as a payment method, it could be a good price catalyst. It would also be encouraging for regulations in the rest of the world.
Florida Representative Matt Gaetz wants to amend the 1986 Internal Revenue Code to allow federal income taxes to be paid in Bitcoin. This bill aims to promote innovation and provide more flexibility for US citizens, increasing efficiency. The bill details state:
“The Treasury shall develop and implement a method to allow any tax imposed on an individual to be paid in Bitcoin.”
South Carolina Representative Nancy Mace also supports the bill and stands with Gaetz. In 2023, US taxpayers paid $1.7 trillion in taxes. If the bill is accepted and taxpayers pay just 1% of their taxes in BTC, it would mean $18 billion worth of BTC entering the US treasury.
