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Congressman Matt Gaetz Introduces Bill to Allow Federal Income Tax Payments in Bitcoin

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Congressman Matt Gaetz (R-FL) has introduced legislation to allow federal income tax payments to be made in Bitcoin. Exclusively reported first by the Daily Wire, this bill aims to amend the Internal Revenue Code of 1986, instructing the Treasury Secretary to develop a plan for accepting Bitcoin.

BREAKING: 🇺🇸 US Congressman Matt Gaetz introduces bill to allow federal income tax to be paid with #Bitcoin pic.twitter.com/mcflCTQejI

— Bitcoin Magazine (@BitcoinMagazine) June 25, 2024

According to Gaetz, his proposal aims to modernize the tax payment process by allowing federal income tax to be paid with BTC.

Gaetz told The Daily Wire: “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 legislation would require the Treasury Secretary to establish regulations for the acceptance of Bitcoin, including specifying when payments are considered received and mandating the immediate conversion of Bitcoin to its dollar equivalent. Additionally, the bill includes provisions for handling related non-tax matters, contracts, fees, and liability.

“The Secretary shall develop and implement a method to allow for the payment with bitcoin of any tax imposed on an individual under this title,” the bill reads. “The Secretary shall prescribe such regulations as the Secretary deems necessary to receive payment by bitcoin, including regulations that specify when payment by such means will be considered received, require the immediate conversion of any bitcoin amount received to its dollar equivalent at the conclusion of any transaction.”

This announcement comes following a recent explosion in Bitcoin support amongst US politicians. Presidential candidates Donald Trump and Robert F. Kennedy Jr. both accept Bitcoin payments, while it was reported that the Biden campaign is also in talks to accept cryptocurrency donations. Biden Admin officials are expected to make an appearance at a Bitcoin roundtable in Washington D.C. in a few weeks hosted by Congressman Ro Khanna, as a response to Donald Trump embracing Bitcoin, pledging to “ensure that the future of crypto and the future of Bitcoin will be made in America.”

Coinbase CEO Brian Armstrong also recently met with both democrat and republican senators in D.C. “to discuss creating clear rules for the crypto industry.”

A couple weeks ago, US Congressman Thomas Massie stated that he decided to introduce a bill to end the Federal Reserve after reading The Bitcoin Standard book.

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