• US Congressman Matt Gaetz has introduced a bill that would allow federal income tax to be paid in Bitcoin (BTC)
• The bill would amend the Internal Revenue Code of 1986 to require the Treasury to develop and implement a method for paying taxes with Bitcoin
• Gaetz stated that the bill would “promote innovation, increase efficiency, and offer more flexibility to American citizens”
The idea of using Bitcoin for federal tax payments has just gotten a big boost in Congress. Matt Gaetz, a U.S. Representative from Florida, has introduced new legislation that would make this digital currency an option for taxpayers.
The Bill’s Details
Gaetz’s bill would amend the Internal Revenue Code to enable Bitcoin as a payment method. If passed, the legislation would require the Treasury Department to develop and implement a system to accept Bitcoin for all federal taxes owed by individuals.
This would be a major expansion in how the leading cryptocurrency could be used. Currently, Bitcoin is not widely accepted by the federal government.
Motivation Behind the Move
In a statement, Gaetz framed the bill as promoting innovation and flexibility. He also said it’s a “bold step toward a future where digital currencies play a vital role in our financial system.”
The Congressman’s recent trip to El Salvador likely inspired the legislation. The country made history in 2021 by adopting Bitcoin as legal tender – the first to do so.
Reaction
Proponents of cryptocurrency are praising the bill as a milestone. If passed, it would represent increased Bitcoin adoption and integration in the U.S. financial system.
However, the legislation still faces an uphill battle to become law. Some lawmakers have been historically skeptical of crypto. But this new proposal signals growing openness to digital assets in Congress.
