New Bitcoin for America Act lets you pay the IRS in Bitcoin and fuels a $14T boost to economy
The Bitcoin for America Act would allow paying federal taxes in Bitcoin, potentially boosting the economy by $14 trillion over two decades.Summary
Representative Warren Davidson introduced the Bitcoin for America Act, which would permit taxpayers to settle federal liabilities using Bitcoin. All incoming coins would be directed into the Strategic Bitcoin Reserve, established earlier by executive order to consolidate seized Bitcoin. A key feature of the bill is eliminating capital-gains recognition on these transactions, allowing individuals and businesses to remit appreciated Bitcoin without triggering taxable events. Modeling by the Bitcoin Policy Institute suggests that if 1% of federal taxes were paid in Bitcoin over two decades, it could generate up to $14 trillion in cumulative value compared to cash equivalents, by accumulating millions of BTC in the reserve. Supporters view these flows as a balance-sheet hedge against dollar liabilities, while critics cite the volatility risk introduced by holding a non-yielding asset. Operational challenges include the Treasury needing to overhaul intake systems for custody, settlement, and sanctions screening, as large, predictable inflows could impact market liquidity and price.
(Source：CryptoSlate)