New legislative proposal to allow federal income tax payments with Bitcoin: details of the bill.
On June 25, Republican Congressman from Florida Matt Gaetz introduced a bill that, if approved, would allow American citizens to pay federal income taxes using Bitcoin. The bill aims to amend the 1986 Internal Revenue Code.
“By enabling taxpayers to use Bitcoin for federal tax payments, we can promote innovation, increase efficiency, and offer more flexibility to American citizens.”
The provisions of the bill require rules specifying after how many blocks the payment in Bitcoin will be considered received and demand the immediate conversion of any received Bitcoin into its dollar equivalent at the end of each transaction.
Among the supporters of the proposal is South Carolina Representative Nancy Mace, who would like to extend the use of Bitcoin to other transactions such as mortgages.
In 2023, U.S. taxpayers paid approximately $1.7 trillion in federal income taxes. If just 1% of these taxes were paid in Bitcoin, the government would receive approximately $18 billion worth of Bitcoin.
