Cryptocurrency is a hot commodity, and it could become legal tender soon. Representative Matt Gaetz (R-FL) is already on it and has recently introduced a bill allowing the payment of Federal income taxes with Bitcoin.
Rep. Gaetz, inspired by El Salvador's bold move to legalize Bitcoin as a legal tender, has introduced a bill that could pave the way for a similar transformation in the U.S. While a study conducted by Yale suggests Salvadorans have been slow to adopt the system into everyday life, the potential economic benefits of widespread cryptocurrency adoption are promising. This could be a significant step towards a more innovative and efficient financial system.
Reuters noted in May that El Salvador managed to mine $354 million in Bitcoin through a state-owned geothermal energy plant, though the International Monetary Fund continues to demand scrutiny.
Similarly, former President Donald Trump, an ally of Bukele, has pledged to be crypto-friendly should he win reelection in November. He has accepted campaign donations in cryptocurrency and blasted regulations put in place by the Biden Administration, accusing them of waging a "war on crypto."
The Daily Wire provided additional details surrounding Rep. Gaetz's legislation, which would require the Secretary of the Treasury to implement systems for paying Federal income taxes with Bitcoin and the necessary means of keeping payments accurate and timely.
"My groundbreaking legislation will modernize our tax system by allowing federal income tax to be paid with Bitcoin. 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," said Gaetz in his press release.
The bill comes a week after the Florida Congressman introduced another tax-related bill with Representative Thomas Massie (R-KY). This bill would remove federal income taxes from money earned in tips, which Gaetz described as "tax relief" during inflation.
It's not just the House that's showing interest in tax-related bills. A similar bill to remove taxes from tips has appeared in the Senate, gaining support from Senator Rick Scott (R-FL).
