Congressman Matt Gaetz (R-FL) has proposed a new bill to allow federal income tax payments in Bitcoin, as first reported by the Daily Wire. This legislation seeks to amend the Internal Revenue Code of 1986, directing the Treasury Secretary to devise a plan for accepting Bitcoin as payment.
Gaetz's initiative aims to update the tax payment system by incorporating Bitcoin as a payment method.
He told the Daily Wire: “allowing taxpayers to use Bitcoin for federal tax payments can drive innovation, enhance efficiency, and provide greater flexibility for Americans. This is a significant step towards a future where digital currencies are integral to our financial system, ensuring the U.S. remains a leader in technological progress.”
The bill requires the Treasury Secretary to establish rules for accepting Bitcoin, including determining when payments are considered received and ensuring the immediate conversion of Bitcoin to its dollar equivalent. It also covers provisions for handling related non-tax matters, contracts, fees, and liability.
This move comes amid growing support for Bitcoin among U.S. politicians. Presidential candidates Donald Trump and Robert F. Kennedy Jr. accepts Bitcoin payments, and the Biden campaign is reportedly considering accepting Bitcoin and cryptocurrency donations.
Biden Administration officials are expected to attend a Bitcoin roundtable in Washington D.C. hosted by Congressman Ro Khanna. This event is in response to Trump's endorsement of Bitcoin, with a focus on ensuring that "the future of crypto and the future of Bitcoin will be made in America."