Opening the paper today (firefox browser) and turning to my favorite news section (Google) for a bit of reading on what is happening in the cryptocurrency markets and the technology news for the day I learned that the US state of Georgia is creating a framework for accepting cryptocurrencies as a valid form of payment for state taxes and licenses. Yes folks that means you will be able to pay your taxes in Bitcoin, Ethereum or Ripple.
I thought to myself... Wow, just look at how far we have come in the past few years!
For my readers that like to dig into a story and do their own research, this new development can be verified according to a bill introduced on Feb. 21.
Senate Bill 464, introduced by Republican state senators, Joshua McKoon and Michael Williams, proposes that “[t]he commissioner shall accept as valid payment for taxes and license fees any cryptocurrency, including but not limited to Bitcoin, that uses an electronic peer-to-peer system.” The bill stipulates that once payments are received, the commissioner will convert the cryptocurrency to US dollars within a period no longer than 24 hours.
So they are going to take Bitcoin for state taxes and fees? That is amazing in my opinion. Will other states follow through? What is more they don't want to limit the payment method to Bitcoin, they also implied that they'd like to take other cryptocurrencies as well (including but not limited to Bitcoin).
Digging a bit deeper into this new development, apparently they aren't the first state to position themselves in this direction. This new legislation is actually following the framework outlined in Arizona’s state senate in bill passed earlier this month.
To dig deeper and read the fine print around that bill we learn that, “[a] taxpayer may pay their income tax liability using a payment gateway, such as Bitcoin, Litecoin, or any other cryptocurrency recognized by the department, using electronic peer-to-peer systems.” Don't get too excited yet, this doesn't mean that U.S. states are into the age old practice of HODL.
The Arizona bill also makes it clear that crypto will be converted to US dollars within 24 hours. We may be a few more months away from a worldwide government investment strategy which follows the HODL philosophy undertaken by Bitcoin millionaires.
According to tax law expert Robert Wood allowing people to use cryptocurrencies to pay taxes could actually lead to people paying more taxes. I would tend to agree that if the governments took a less hostile stance towards cryptocurrencies and rather adopted a framework to support them, a lot of potential tax evaders would come in line with their country's tax laws and pay their fair share.
What do you guys think about this new pay your taxes with crypto move? Will this be the solution to state government's struggle with financial solvency?
Please leave your thoughts below.
Thanks for reading @Techblogger!
Source:
US: Georgia Next State In Line To Accept Crypto For Taxes, Licenses - Coin Telegraph
Image Source:
Coin Telegraph