Meanwhile In Wyoming: We Don't Want To Tax Crypto
A tax bill introduced in Wyoming state senate two days ago proposes to exempt cryptos form taxing. The bill was received favorably and, surprisingly, passed with 26 (for) / 3 (against) / 1 (excused).
Here's the relevant part form the bill:
The following shall be exempt from property taxation:
(vi) Any of the following intangible items:
- (A) Money and cash on hand including currency, gold, silver and other coin, bank drafts, certified checks, and cashier's checks; and virtual currencies. As used in this subparagraph, "virtual currency" means any type of digital representation of value
that:- (I) Is used as a medium of exchange, unit of account or store of value; and
- (II) Is not recognized as legal tender by the United States government.
I don't know how many people hold cryptocurrencies in Wyoming and I don't think this is necessary important now. What's important, though, it's the signal that this bill sends: "we won't tax cryptos".
It will be interesting to follow up during next months and see how many blockchain startups and exchanges will migrate to Wyoming.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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I guess all Crypto holders now have the option to migrate to Wyoming to avoid Crypto taxes, if they are feeling the pinch in their respective countries... Good initiative!
I was tracking coverage of the Wyoming Blockchain Coalition over the past few months (including here) and while it's exciting to see that less taxes will be implemented on crypto, it doesn't stop the Federal government from taxing crypto. The federal level tends to be where heavy taxation is here in the states. In this case, Wyoming is not (to my knowledge) a particularly heavy state tax state to begin with. When I used to live in Texas, there were no income taxes from the state level and almost all withdrawals from paychecks came from the feds. Businesses also had veryyy beneficial tax breaks in Texas. (And with regard to Federal taxes, there is a new federal tax bill being put into place for 2018, but I'm not sure how much of a difference it will make on the whole for crypto. )
Anyway, it's still exciting to see how cryptocurrency is treated by various governments from a tax perspective, and as you stated, maybe crypto companies will migrate their HQ's to Wyoming. (Whether they physically locate there or not is another story -- hilariously enough, Facebook is technically operated out of Delaware because of the beneficial taxes, but its HQ is obviously in the Bay Area here in California. Hah.) Crypto taxation will clearly be an evolving field in the coming years and I'm sure tax lawyers and accountants will have to scramble to keep up!
Hey are you in Texas? A great state and you are right no State tax. It needs to start at the state level.
Hey @rebeccabe! No, I am not in texas anymore; I am now in California, but i lived in texas for about six years
California girl..well I am not in Texas ..nebraska for the last few years of all places
Maybe trying to diversify their economy right? It's a precarious position to be a in a resource type economy that depends on natural resources (coal). You might like this article I read recently why people are moving to Idaho and fleeing Wyoming https://www.denverpost.com/2017/12/26/idaho-wyoming-population-growth-economy/
I really liked your well written comment!
Thank you, @antimetica!! Yeah, spammers are not my fave and if Im gonna write a comment, I do my best to be thoughtful if I can (I imagine you are the same :]). In real life, though? Im not thoughtful at all :-P XD
Awesome article share, too. I think it is fascinating that wyoming has a pretty high cost of living... not sure that people transferring their bitcoins to Wyoming-based holding companies will make much of a difference to that uncomfortable life reality in the state!!
I would be very surprised if this was the trend going forward. There is the old saying, "the only certainties in life are death and taxes."
If there is money being made the government is going to take a cut from it and unfortunately the usually do one way or the other. I would love if this wasnt true but i can see crypto being put into similar catagories as stocks for taxation.
Apart from cryptos such as ripple, which is someway centralized, I believe every other Crypto should be fully decentralized...The idea of regulation and taxing sucks pretty much. The transaction fee that we pay is enough tax... :)
For those who still insist on taxing crypto holders, I wonder how they intend to do that. How do they regulate or moderate crypto wallets when it is not like a national central bank.
At last... looks like my new domain is Wyoming...I love it there.
I registered my truck there and while traveling across country used it as my residence by getting a mail box there.
No doubt! Its like california with weed. Itll be like a wyoming gold rush. This will be great for entrepreneurs who are looking to do something awesome with their gains without losing half. Should be awesome! Hope this goes well federally too. One day itll be commonplace because of small movements like this. Cryptorevolution is upon us!
Thats good news, might have a domino effect and bring about favorable votes in other states. Thanks for the update
oh damm that's a fantastic news update
No tax for crypto? but what about the banks? do they accept payments from Crypto?