Arizona May Become First State to Accept Bitcoin for Tax Bill

New bills on the floor of Arizona’s house of representatives are expected to both legitimize cryptocurrency and allow residents to pay their taxes with it.

Pay your taxes while you’re watching TV

As digital currency becomes more and more integrated into the marketplace most news out of the US is about regulation. Arizona though is taking steps to become the first state to both recognize Bitcoin and it’s like as currency, instead of a commodity, and allow people to pay their taxes with it.

“It’s one of a litany of bills that we’re running that is sending a signal to everyone in the United States, and possibly throughout the world, that Arizona is going to be the place to be for blockchain and digital currency technology in the future,”

Arizona State Rep. Jeff Weninger said.

The bill Weninger co-sponsored passed through the state finance committee with a vote of 4-3 putting it on it’s way to becoming law.

“The ease of use, being able to do it in the middle of the night, being able to do it at home while you’re watching TV … I think in a few years this isn’t even going to be a question.”

The U.S. dollar should suffice

The bill has faced opposition from those who cite the volatility of the cryptocurrency market as potentially disastrous to the tax base. Arizona State Senate Minority Leader Steve Farley has said that all taxpayers would be at risk if Bitcoin was to experience a serious crash.

“If we had a bill that allowed people to pay their taxes in bitcoin directly, that puts the volatility burden on all other taxpayers because it would mean that that money goes to the state and then the state has to take the responsibility of how to exchange it … These are American dollars. They’re good enough for me, they should be good enough for anybody else who pays taxes in this country.”

Farley said.

The American tax system is notoriously bloated and difficult to negotiate.  Representative Weninger hopes that a move towards integrating a cryptocurrency pay option is a step towards simplifying the process. Noting that the entry point for getting into Bitcoin is low most of the resources dedicated to the program would be earmarked for educating users.

Previously the world economic forum estimated that taxes would be collected by governments using Blockchain ledger technology by 2023 if this bill passes Arizonians will be paying in Bitcoin in two years.

  • Someone Special

    How does paying in bitcoin simplify anything?

    You need to convert your fiat to bitcoin and then back again. You have to pay your bank to to an exchange or you have to pay a bad exchange rate at a BTC ATM. Thne the process needs to be reversed…

    If you hold BTC and the value drops unexpectedly what will the state do? Hodl?!

    Blockchain and crypto is the future, perhaps even BTC but currently it;s not going to work out.

    • Steve

      wadya mean?
      I don’t think you understand crypto….. centralized exchanges are kinda dumb, fiat is dying.
      we’re going to just transfer money back and forth digitally now without the banks help….. kthanks laterbye.
      (*waits for banks to ask for another bailout so they don’t shut down)

      • Steve

        I’m already getting paid in crypto….
        I’m looking forward to my electric company making the switch the most, it will make my life so much easier….
        I’m also a lot less concerned about what society will do if the banks “go away”……
        member when they got “bailed out” there a few years ago? what would happen if they weren’t “bailed out” …… like “North America has run out of credit”….. it’s going to be bad for a time, but we have better ways now…….
        also: check out “the debt clock” it’s some scary stuff….

        If you hold fiat and hyperinflation happens, what will you do?
        it’s coming.

        • CeleronS

          Dude you just don’t understand how world works. If you issue your own currency, its in your interest to make sure it looses value over time. If you use crypto instead, all that volatility will screw your long term plans over and you will never gonna able to establish debt for your infrastructure (Try to compete with other counties when you out of cash). Why would you wanna pay your workforce with stuff that doesn’t looses value? Instead of fiat or crypto you should get real assets, that puts fiat in your pocket no mater what its called. And yea you might say Arizona is trying but I bet you that they will exchange your crypto every 24 hours to actual legal tender.

  • Alex Martell

    “that puts the volatility burden on all other taxpayers because it would mean that that money goes to the state and then the state has to take the responsibility of how to exchange it … These are American dollars” . . . With CBOE, CME and LedgerX offering regulated institutional Bitcoin futures, any financial manager worth her salt should be able to hedge out any exposure to USD depreciation vs BTC . . . either Farley is obfuscating or he doesn’t know what he’s talking about

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