U.S. Congressmen propose IRS to accept Bitcoin for tax payments, Is cryptocurrency becoming a political tool?

Yesterday, Republican Congressman Matt Gaetz of the United States House of Representatives called on the Secretary of the Treasury to establish a plan to allow local residents to pay federal income taxes with Bitcoin. He claimed that this move could modernize the tax system, promote innovation, and improve administrative efficiency. With that, political maneuvers related to cryptocurrency issues once again came to the forefront.

Congressman Proposes Allowing People to Pay Taxes with Bitcoin

Congressman Matt Gaetz introduced a bill on Tuesday requiring the Internal Revenue Service (IRS) and the Secretary of the Treasury to develop a plan that would allow individuals to pay federal income taxes using Bitcoin.

The statement mentioned that Gaetz, while attending the second inauguration of Salvadoran President Nayib Bukele, recognized the advantages of Bitcoin in promoting financial stability and creating job opportunities in Central America:

This groundbreaking legislation will modernize our tax system by allowing Bitcoin to drive innovation, increase capital efficiency, and provide greater financial flexibility to American citizens.

It further added, "This bold step towards the future ensures that digital currency will play a critical role in our financial system and maintains America's leadership in technology."

Only One State in the US Allows Cryptocurrency Tax Payments

According to an announcement by the Colorado Department of Revenue (DOR) website, Colorado is currently the only state in the US that accepts cryptocurrency for tax payments.

Colorado has been accepting cryptocurrency for business and individual income tax payments since September 2022, with an additional $1 fee plus a 1.83% service charge on the payment amount.

Previously, Republican Senator Ted Cruz also advocated for a bill to allow shops in Capitol Hill to accept cryptocurrency payments, although it has not been voted on yet.

Cryptocurrency Issues Used as Political Chips

During the US election year, politicians often utilize trending topics to divert public attention away from unfavorable media coverage, a strategy that is not uncommon.

However, cryptocurrency issues seem to have become the latest tool for some US lawmakers to confuse the public, with several apparent political maneuvers outlined below:

Matt Gaetz

As mentioned above, Gaetz expressed support for including Bitcoin in federal tax payments yesterday, marking a rare public stance on digital assets aside from his previous support for the FIT21 (21st Century Financial Innovation and Technology Act).

Breaking Free from SEC Regulation! What are the Conditions for Defining "Decentralized Network" in the FIT21 Bill? The Killer of Public Chains is Coming

Interestingly, the House Ethics Committee announced last week that it is investigating Gaetz for allegations of misconduct and illegal drug use.

This move inevitably raises questions about whether the proposal is a means to divert public attention.

Trump

Another classic example is US presidential candidate Trump, who, after announcing his candidacy, extensively discussed his stance on cryptocurrency, launching various NFT collections, accepting cryptocurrency donations, and promising to protect Bitcoin mining.

Trump Vows to End the Crypto Enforcement War, Advocates for Crypto Industry to Enter Florida

Facing potential threats from another candidate, Biden, Trump began to view these issues as the core chips of his campaign. At the same time, he is facing multiple controversial criminal and civil lawsuits.

Last month, the 77-year-old Trump became the first US president to be convicted, facing 34 felony convictions, up to four years in prison for each charge, and hundreds of millions of dollars in defamation and fraud damages.

Historic First for US Presidents! Former President Trump Convicted on 34 Counts, Sentencing Collides with Nomination