Regulation
Congressman Matt Gaetz introduces a bill to allow federal taxes to be paid in Bitcoin
Member of Congress Matt Gaetz (R-Fla.) has introduced a bill that would allow the federal government income tax payments to realize Bitcoin Bitcoin/USD.
What happened: This proposed The legislation seeks to amend the Internal Revenue Code of 1986, providing a new method for taxpayers to settle their federal tax liabilities using the leading cryptocurrency.
Benzinga has reached out to representative Gaetz for comment.
The bill outlines a framework for the U.S. Treasury to develop and implement a system that allows Bitcoin payments for individual federal taxes.
The main provisions include the immediate conversion of the Bitcoin received into its dollar equivalent at the end of the transaction, ensuring stability and convenience in its adoption.
Additionally, the bill directs the Secretary of the Treasury to issue regulations to address the nuances of Bitcoin tax payments, such as determining receipt times and handling related non-tax matters independently of the Treasury.
Gaetz’s initiative reflects a significant step toward integrating digital currencies into traditional financial operations.
In the meantime, Speaking of with Daily Wire, Congressman Gaetz stated that the intention behind proposing the bill was to promote innovation, increase efficiency, and provide greater flexibility to American citizens.
“This is a bold step toward a future where digital currencies play a vital role in our financial system, ensuring the United States remains at the forefront of technological advancement,” he said.
This follows his recent visit to El Salvador for the inauguration of the President Nayib Bukelewhich led his country to become the first to adopt Bitcoin as legal tender in 2021.
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Because it is important: Gaetz’s support for cryptocurrency is in line with that of the former president Donald Trumpwhose campaign has has embraced crypto donations despite regulatory pressure from the current administration.
Former President Trump has expressed strong support for cryptocurrency, recently pledging to end what he described as president Joe Biden‘S “war on cryptocurrencies.”
At a rally earlier this month, Trump stressed, “We will ensure that the future of cryptocurrencies and the future of Bitcoin will be made in America.”
This sentiment is echoed in Gaetz’s legislative push, which could foster broader acceptance and integration of digital currencies within the U.S. financial system.
The introduction of this bill comes at a time of significant debate and regulatory scrutiny around cryptocurrencies.
As federal agencies grapple with the complexities of regulating digital assets, Gaetz’s proposal could spark further debate about the role of cryptocurrencies in the American economy.
As the bill progresses, it will be critical to monitor its reception in Congress and among stakeholders in the financial sector.
The proposed legislation, if passed, could mark a fundamental shift in how taxes are paid and administered in the digital age.
What’s next: For those interested in the future of digital assets and financial innovation, Benzinga’s The future of digital assets The November 19 event provides a timely platform to explore these developments.
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