New Bill Would Allow Federal Taxes To Be Paid With Bitcoin, Protect US From 'Global Financial Instability'
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
A new bill introduced in the House of Representatives would allow people to pay federal taxes with Bitcoin.
The Bitcoin for America Act by Rep. Warren Davidson (R-UT) would also protect the U.S. from financial instability by diversifying its national wealth and keeping up with countries that have already built up Bitcoin reserves, Davidson said in a statement.
"By allowing taxpayers to pay federal taxes in Bitcoin and having the proceeds placed into the Strategic Bitcoin Reserve, the nation will benefit by having a tangible asset that appreciates in value over time," he said, "unlike the U.S. dollar, which has steadily lost value under inflationary pressures."
Don't Miss:
-
Fast Company Calls It a ‘Groundbreaking Step for the Creator Economy' — Investors Can Still Get In at $0.85/Share
-
Earn While You Scroll: The Deloitte-Ranked #1 Software Company Growing 32,481% Is Opening Its $0.50/Share Round to Accredited Investors.
Bitcoin used to pay federal taxes would be deposited into the Strategic Bitcoin Reserve established by President Donald Trump earlier this year, according to the bill.
Davidson is a member of the U.S. House Financial Services Committee, which has jurisdiction over monetary policy, and the Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence.
Bitcoin and taxes
The U.S. wouldn't be the first country to allow taxes to be paid with Bitcoin. El Salvador previously allowed it but reversed the rule earlier this year so it could receive a $1.4 billion loan from the International Monetary Fund.
Some U.S. states and cities, including Colorado and Detroit, allow certain tax payments to be made in cryptocurrency, though federal taxes must still be paid with the U.S. dollar.
Trending: 7 Million Gamers Already Trust Gameflip With Their Digital Assets — Now You Can Own a Stake in the Platform
Bitcoin vs. the U.S. dollar
Bitcoin's decentralized nature would protect the U.S. from inflationary pressures that tend to devalue the U.S. dollar, according to the bill. Additionally, the dollar's purchasing power can be affected by external factors like interest rate adjustments.
"Bitcoin, being free from such interventions, offers a stable alternative for preserving wealth, and the establishment and maintenance of the Strategic Bitcoin Reserve would mitigate risks associated with fiat currency devaluation," the bill says, "ensuring the United States maintains economic strength in an increasingly digital and decentralized global economy."
Content Original Link:
" target="_blank">
