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Republican House Representative Matt Gaetz has introduced a bill allowing Americans to pay federal income taxes using Bitcoin.
What's the Scoop?
- Amendment to Internal Revenue Code: The bill seeks to amend the Internal Revenue Code of 1986 to include
Bitcoin as a tax payment method and would see the Secretary of the Treasury developing a system to accept Bitcoin payments. - Conversion and Payment System: Bitcoin payments would be converted to dollars upon receipt, and fees would follow similar rules to credit card payments.
- IRS Contracts and Provisions: The IRS would enter into contracts for Bitcoin payment services, upholding liability and confidentiality protections.
Bankless Take
Rep. Gaetz's proposal continues the Republican party's trend of voicing clear support for Bitcoin and seeking to find ways to integrate it into everyday life. This move could position the U.S. as a leader in crypto adoption, potentially influencing other countries to follow suit. However, the bill's eventual success hinges on addressing the technical and regulatory challenges of integrating Bitcoin into the federal tax system — a steep hill to climb.
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