Paying Taxes With Bitcoin Is A Win-Win-Win

[OgNasty]

The proposal to pay taxes using Bitcoin has gotten a bit of a bad wrap in the community and I think that is misguided.

Rep. Warren Davidson (R-OH) introduced today the Bitcoin For America Act in the U.S. House of Representatives, a landmark proposal designed to modernize the U.S. financial system and position the nation at the forefront of the global digital asset economy.

The bill would allow Americans to pay federal taxes in bitcoin, with all proceeds deposited into a newly created Strategic Bitcoin Reserve (SBR).

► https://bitcoinmagazine.com/news/bitcoin-for-america-act-tax-free-bitcoin

There must be a special place in hell for those who decide to pay their taxes in Bitcoin.

Paying Taxes With Bitcoin Is A Win-Win-Win

If this bill passes and Bitcoin can be used to pay taxes without triggering capital gains taxes, that benefits everyone involved.

• Tax receipts would increase the Strategic Bitcoin Reserve to benefit America.
• The taxpayer can repurchase Bitcoin at current market rates, thereby raising their BTC cost basis for future tax benefit.
• The market would have BTC removed from supply forever to be placed into the SBR and will have buying pressure as that spent BTC is repurchased by the taxpayer.

A win for America.  A win for the taxpayer.  A win for the Bitcoin market.  

We should all be hoping this bill passes.  If it does, anyone with unrealized capital gains on their BTC should consider paying their taxes in Bitcoin and buying more to replace it.

Thoughts?

[_act_]

Having alternatives is always good, so if bitcoin can be used directly to pay tax, it will really will be good and many people will accept it. But I will prefer to use fiat to pay the tax and hold the bitcoin that I supposed to use to pay the tax.

But if the government will not convert the tax paid in bitcoin to fiat, I will prefer to pay the tax in bitcoin and convert more fiat to bitcoin instead. But I doubt if the government will not convert the tax to fiat.

[OgNasty]

But if the government will not convert the tax paid in bitcoin to fiat, I will prefer to pay the tax in bitcoin and convert more fiat to bitcoin instead. But I doubt if the government will not convert the tax to fiat.

He government already came out and said that they would never sell any Bitcoin they take in. They also said they were looking for budget neutral ways to accumulate more Bitcoin. I don’t know if accepting Bitcoin for tax debts falls into budget neutral territory, but I’m fairly certain they wouldn’t sell any BTC they take in.

[zkazy]

I think it is a great idea to me, as it would seem to recognize Bitcoin as an official currency for the payment of (tax) debts.  If enacted, it seems that it would pave the way for the federal government to pay government contractors with Bitcoin rather than pay them in USD, further cementing Bitcoin's status as a currency rather than an investment vehicle.  Perhaps this would open the door to treating it more like cash for tax purposes??