US Congressman Matt Gaetz has introduced a bill that would allow federal income tax to be paid in Bitcoin. The Florida representative introduced the legislation that amends the Internal Revenue Code of 1986 to allow taxpayers to use the leading cryptocurrency for tax payments.
The amendment would require the Treasury to “develop and implement a method to allow for the payment with Bitcoin of any tax imposed on an individual,” under the specified title. The bill would be a massive step to increase adoption of the cryptocurrency in the United States.
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New US Bill Would Allow Federal Income Tax Payments in BTC
Throughout 2024, Bitcoin has taken a massive step forward regarding its prevalence in the US. It became the first crypto-based ETF in the country, with institutional investor interest skyrocketing since the product’s approval in January.
Now, one US Congressman is introducing a bill to allow income tax payments in Bitcoin. Matt Gaetz of Florida has set forth the legislation that would present a massive change to the current Treasury code. It would require the Treasury to focus more on digital asset implementation.
Source: The Washington Times
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“By enabling taxpayers to use Bitcoin for federal tax payments, we can promote innovation, increase efficiency, and offer more flexibility to American citizens,” Gaetz told the Daily Wire. “This is a bold step toward a future where digital currencies play a vital role in our financial system,” he added.
Gaetz recently traveled to El Salvador, where Nayib Bukele was recently inaugurated as president for the second time. Indeed, Bukele had adopted BTC as legal tender in 2021, and was the first country to do so. Moreover, the country’s continued embrace of Bitcoin likely inspired Gaetz’s action in the US.