Finance

Congress to Consider Bill Allowing Federal Income Tax Payment in Bitcoin

On June 25, 2024, U.S. Congressman Matt Gaetz introduced a groundbreaking bill in the U.S. Congress that proposes amendments to the federal tax system. The bill, if passed, will allow Americans to pay their federal income taxes using Bitcoin. Gaetz, a Republican, believes this initiative will support innovation and increase the efficiency of the tax system.

Gaetz’s proposal follows the precedent set by Colorado, the only state in the U.S. where similar measures have been adopted at the state level. However, in Colorado, cryptocurrency can only be used to pay state taxes and not federal taxes.

If enacted, the bill will require U.S. Treasury Secretary Janet Yellen to approve the necessary amendments to federal legislation. Moreover, the initiative aims to pave the way for the use of other crypto-assets for tax payments.

"My innovative bill modernizes our tax system. By allowing taxpayers to use Bitcoin for their payments, we promote innovation, enhance efficiency, and offer greater flexibility to our citizens," stated Gaetz.

In a letter accompanying the bill, Gaetz mentioned his attendance at the second inauguration of El Salvador's President Nayib Bukele. During his visit, he reportedly witnessed firsthand how Bitcoin has strengthened the country's financial system.

Earlier, we reported that Consensys, a blockchain technology company, urged the U.S. Internal Revenue Service (IRS) to delay the implementation of a new form for recording crypto transactions, arguing that it would impose a significant financial burden on brokers.

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