Tax revenues paid in BTC would be directed to the strategic reserve and would not constitute a taxable event.
On November 20, in the United States, Republican Congressman Warren Davidson introduced a bill called the Bitcoin for America Act.
The initiative, proposed by the Ohio representative, establishes a twofold mechanism: on one hand, it would allow individuals and businesses to settle their tax liabilities using bitcoin; on the other, it would automatically allocate these payments to the United States’ strategic bitcoin reserve.
According to Davidson’s statement to the Bitcoin Policy Institute, the law would give taxpayers the ability to decide how to allocate their tax payments by paying in BTC instead of traditional dollars. Tax payments would not be subject to capital gains taxes.
Davidson emphasized that the option to pay taxes in bitcoin would strengthen the financial foundation of the U.S. government. “The Bitcoin For America Act will position our country to lead—not follow—as the world navigates the future of sound money and digital innovation,” the congressman said in his official statement.
Another aspect of the proposal is the ability for taxpayers to direct their payments specifically. Those who choose to pay taxes in bitcoin would see their funds go exclusively to the strategic reserve, rather than to foreign aid or other areas of government spending, Davidson explained.
He described this option as a way to “send a clear message to the government,” opening a debate about the kind of public administration citizens desire. “I think there are a lot of people that want way less government and far more freedom,” the legislator added.
Conner Brown, Head of Strategy at the Bitcoin Policy Institute, stated:
“The Bitcoin for America Act proves that a strategic bitcoin reserve doesn’t need to be a top-down mandate. By letting Americans voluntarily contribute bitcoin through their tax payments, it creates the first truly democratic, market-driven model for national bitcoin accumulation.”
The federal proposal comes as some local authorities are already experimenting with accepting bitcoin and other digital assets. Earlier this year, Detroit became the largest U.S. city to allow residents to pay taxes and other municipal fees in cryptocurrency.
