Paying Taxes with Bitcoin in Arizona
True to its libertarian nature, Arizona may very soon allow residents to pay their taxes in cryptocurrency. Here are a few notes from the article. A link to the article is provided below.
There are currently two bills being looked at in the Arizona legislature. The first recognizes cryptocurrencies as currencies and not a commodity. The second would allow residents to pay taxes with bitcoin.The second bill passed the Senate Finance Committee by a vote of 4 to 3.A payroll company in Phoenix “allows employees to receive their paychecks through bitcoin and to invest part of their 401(k) into bitcoin.”Five states have enacted or adopted blockchain legislation.The World Economic Forum estimates that taxes will be collected for the first tme by a government via blockchain by 2023.
The legislation brings up a lot of questions, such as”
How will banks react? Will there be an increase in lobbying efforts from the banking industry in Phoenix?What are the legal consequences? It is illegal in the US for one to print/mint and distribute their own currency? Do states have a right to do this within their own states (federal taxes excluded)?Even the sponsor of the second bill mentions how people will need to be educated on the system. What would be the recourse for those who lost money or failed to pay their taxes due to confusion? What resources would be made available for the elderly, less educated and low-income residents?
As many on this site believe, I believe what is being proposed in Arizona will be commonplace in many states within the coming decade. However, in the excitement of using blockchain and legitimating cryptocurrencies, there are a lot of legal issues to consider.
Would love to hear from those living in Arizona.
Article:
https://nypost.com/2018/02/07/this-state-may-allow-people-to-pay-their-taxes-with-bitcoin/
Illegal to print/mint and distribute own currency:
http://www.communitycurrencieslaw.org/currency-laws/
