In an important development for the crypto industry, Republican Congressman Matt Gaetz is set to introduce a new bill allowing Federal income tax payments It will be conducted using Bitcoin (BTC).
Gates believes that by allowing taxpayers to use Bitcoin in their federal tax liabilities, the country can foster innovation, enhance efficiency and provide greater flexibility to American citizens.
the Proposed legislation It aims to amend the Internal Revenue Code of 1986, directing the Secretary of the Treasury to create a framework for accepting Bitcoin as a valid means of payment.
Inspiration from El Salvador?
in statement In a statement to The Daily Wire, Gates expressed his belief that this step is crucial in shaping a future in which digital currencies play an important role in the financial system, ensuring that the United States remains at the forefront of technological advancement.
This step taken by Gates comes in the wake of his recent visit to El Salvador to attend the inauguration of President Nayib Bukele for the second time, as the country became the first country Embrace Bitcoin as legal tender.
Gaetz, an ally of former President Donald Trump, has joined the former president’s position on cryptocurrency. Trump recently expressed his opposition to President Joe Biden’s “war on cryptocurrencies.” He pledged to support The growth and development of cryptocurrencies and Bitcoin within the United States.
Gaetz’s Bitcoin Tax Bill
Gates’ proposed bill would enable the Treasury Secretary to establish regulations for accepting payments in bitcoin in exchange for certain federal taxes.
The legislation also calls for the immediate conversion of Bitcoin amounts received into their equivalent dollar value thereafter Transactions. The draft law emphasizes resolving tax-related issues by the minister without involving financial intermediaries.
While the Internal Revenue Service (IRS) already mandates reporting of digital asset transactions and paying taxes on income or gains associated with cryptocurrencies, Gates’ bill seeks to modernize the tax system by formally allowing federal income tax payments to be made with Bitcoin.
The proposed legislation also recognizes Growing fashion Some states, such as New Jersey, Kentucky, and Colorado, are implementing their tax regulations on cryptocurrencies, including accepting cryptocurrencies as a means of paying taxes.
If passed, Gates’ bill would mark an important milestone in integrating cryptocurrencies into the mainstream financial system, providing taxpayers with an alternative way to meet their federal tax obligations.
As the bill progresses, its potential impact on the broader adoption of cryptocurrencies and the evolving regulatory landscape surrounding cryptocurrencies will attract significant interest from industry stakeholders and the general public.
At the time of writing, BTC is trading at $61,400, rebounding from Monday’s decline towards the $58,400 mark and gaining more than 2% over the past 24 hours.
Featured image from Shutterstock, chart from TradingView.com