Bitcoin
Rep. Matt Gaetz Introduces Bill to Allow Federal Tax Payments in Bitcoin
In a move that could impact the intersection between cryptocurrency and government finance, US Representative Matt Gaetz has introduced a bill that would allow Americans to pay their federal income taxes using Bitcoin.
O proposed The legislation, introduced in the House of Representatives, seeks to amend the 1986 Internal Revenue Code to accommodate this new payment method.
The bill, if passed, would require the Secretary of the Treasury to develop and implement a system to accept Bitcoin as payment for individual federal taxes.
Decrypt reached out to Gaetz for comment but did not receive an immediate response.
Such a system would need to address several important aspects, including specifying when Bitcoin payments are considered received and requiring the immediate conversion of Bitcoin to its dollar equivalent upon completion of the transaction.
Rep. Gaetz’s proposal also includes provisions for the Internal Revenue Service (IRS) to enter into service contracts related to receiving payments in Bitcoin. The bill stipulates that rules similar to those governing credit card payments would apply to fees associated with these services.
It is important to highlight that the legislation addresses issues of responsibility and confidentiality, applying rules similar to those currently in force for other payment methods. This approach aims to ensure that the introduction of Bitcoin as a payment option does not compromise existing taxpayer protections.
On a Press releaseRep. Gaetz said the measure is designed to encourage innovation and efficiency while giving American taxpayers more ways to meet their obligations.
“This is a bold step toward a future where digital currencies play a vital role in our financial system, ensuring the U.S. remains at the forefront of technological advancement,” he said.
The timing of this bill is noteworthy, coming on the heels of Rep. Gaetz’s recent trip to El Salvador for President Nayib Bukele’s second inauguration. El Salvador made history in 2021 by becoming the first country to adopt Bitcoin as legal tender – a move that has since sparked global discussions about the role of cryptocurrency in national economies.
This legislative proposal aligns with a growing interest in cryptocurrency in certain political circles. Former President Donald Trump, of whom Republican Rep. Gaetz is a known ally, recently began accepting crypto donations for your campaign.
At a recent rally, Trump declared his intention to “end President Joe Biden’s war on crypto” and ensure that “the future of crypto and the future of Bitcoin will be made in America.”
While Democrats have historically been less friendly toward cryptocurrency, President Biden is reportedly softening on the issue as it becomes an emerging issue in an election year. Biden officials reportedly participate in a roundtable on Bitcoin in Washington DC, and the administration also rehired a crypto consultant which criticized the Securities and Exchange Commission (SEC).
The introduction of this bill represents a potentially significant step towards widespread cryptocurrency adoption in the United States.
If approved, it would mark a major shift in how the federal government interacts with digital currencies, potentially paving the way for broader acceptance and integration of Bitcoin and other cryptocurrencies into official financial transactions.
Edited by Andrew Hayward