Paying Taxes with Bitcoin

We all know that digital currency like Bitcoin can be used to purchase music, food, flight tickets, hotels, or even real estate:

Source: CryptoTicker Author – Steven Steel

Now, the state of Arizona is prepared to up the game by introducing bills that will allow taxpayers to pay off their tax returns with Bitcoins.

According to a report by Fox News, Arizona is ready to revolutionize how governments consider cryptocurrencies like Bitcoin – instead of viewing these digital currencies as a means to tax-evasion and other criminal activities, the state is prepared to turn the tables around. The bills will not only recognize cryptocurrencies as currency instead of a commodity, it will also allow taxpayers in Arizona the option to pay their taxes with Bitcoin.

https://twitter.com/charlielap/status/961337558473961472

Below is what Jeff Weninger, State Representative of Arizona said on this topic:

“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.”

The bill has already passed the Senate Finance Committee by a vote of 4-3 and according to Weninger, it will make paying taxes so much more convenient for the people of Arizona.

“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.”

Mainstream Adoption

Arizona’s decision received a lot of support from local businesses.

Jack Biltis, the owner of Tag Employer Services, believes that the passing of the bill puts Arizona ahead in the cryptocurrency footrace. His company, which he co-founded in 2003, allows employees to receive their paychecks through Bitcoin and to invest part of their 401(k) into Bitcoin as well.

“We’re living in just a hugely interesting time and, really, we just want to be a part of it,” Biltis said. “We just know that we could be, as Arizona’s chosen to be, at the forefront of this time and encourage these new technologies. That’s just an exciting place to be.”

When asked why do cryptocurrencies have the potential to revolutionize the future of money, Biltis’ answered:

 “By accepting cryptocurrencies, you can do it for pennies and at the same time, you can transfer money, really, in almost an instant amount of time. So, this new technology is absolutely going to replace what we have now with our inefficient credit cards and banking systems.”

Based on the forecast made by the World Economic Forum, governments will start accepting tax payments via a blockchain by 2023 at the earliest. If Arizona’s passes this bill, they will become the first ever government to do so by 2020 – 3 years before the WEF prediction.