Congressman Matt Gaetz, a Republican from Florida, has proposed a bill that would enable federal income tax payments in Bitcoin. Initially reported by the Daily Wire, this legislation seeks to modify the Internal Revenue Code of 1986 by directing the Secretary of the Treasury to develop a strategy for adding Bitcoin into tax payment options.
Bitcoin’s Demand Grows Amid Politicians
Matt Gaetz is proposing legislation that would permit payment of federal income tax using Bitcoin. If passed, this bill would revise the Internal Revenue Code of 1986 by mandating that the Secretary of the Treasury create a plan to accept the widely-used cryptocurrency.
Gaetz said, “By enabling taxpayers to use Bitcoin for federal tax payments, we can promote innovation, increase efficiency, and offer more flexibility to American citizens. This is a bold step toward a future where digital currencies play a vital role in our financial system, ensuring that the U.S. remains at the forefront of technological advancement.”
The bill mandates that the Secretary of the Treasury set rules for accepting Bitcoin, highlighting the conditions under which payments are considered received and requiring the immediate conversion of Bitcoin into its dollar value. Furthermore, the legislation includes guidelines for managing associated non-tax issues, contracts, fees, and liabilities.
This development comes amid a surge in Bitcoin support among U.S. politicians. Presidential candidates Donald Trump and Robert F. Kennedy Jr. are already accepting Bitcoin contributions, and reports suggest that the Biden campaign may soon follow by accepting cryptocurrency donations.
In response to Trump’s pro-Bitcoin stance, Biden Administration officials are set to attend a Bitcoin roundtable in Washington D.C., organized by Congressman Ro Khanna in the coming weeks.
Meanwhile, Coinbase CEO Brian Armstrong has been actively engaging with both Democratic and Republican senators in Washington D.C. to advocate for clear regulatory guidelines for the crypto market.
Bitcoin Dominates Ahead Of US Elections
Recently, Donald Trump showed strong support for the cryptocurrency industry, aiming to make the US a leader in Bitcoin mining. He highlighted how this sector could help the national energy grid and boost the economy.
During a significant fundraising event, Trump’s remarks attracted notable figures from the cryptocurrency world, such as the Winklevoss twins and Coinbase executives, helping him raise $12 million for his campaign.
Additionally, Cathie Wood, CEO of Ark Invest, supports Trump, highlighting that his economic policies are essential for the US economy. At a conference, Wood praised the economic growth during Trump’s first term and referenced economist Arthur Laffer, indicating that economic factors significantly influence her voting decisions.
Swan Bitcoin’s Chief Investment Officer, Raphael Zagury, noted a significant move in political discussions about Bitcoin, moving from criticism to more positive engagement. He highlighted that the topic moved from senators to political figures, with Trump’s supportive comments coming as a surprise to many. Zagury sees this as a massive change for the crypto market.