Arizona is ready to Accept Tax Payments in Cryptocurrencies
The Arizona Council has approved a bill that will permit residents to pay their income taxes by using Bitcoin or other cryptocurrencies through the state’s profits authorities.
Accepting payment of income tax in cryptocurrency has deep symbolic and practical importance. Historically, the usage of government-issued money for the payment of income tax has aided in the currency’s extensive approval as a payment medium. Just a few days back, the Illinois government task force has announced the procedure to work with blockchain technology. Arizona is also going to work on this technology.
Arizona State Representative Weninger Jeff, who has subsidized similar bills, says the primary objective of passing this new law is to foster technical invention in the state. In fact, it is an initiative to provide a legal structure to Initial Coin offerings (ICOs). About the new bill, known as SB1091 and SB1145, Weninger said, “We are trying to send a sign to everyone in the US and possibly through the world that Arizona is going to be the place to ready for blockchain and digital currency in the future.”
This new decision might sound similar to the focus of technology invention in places similar to San Francisco and New York. Blockchain technology in specific has been encountered with extensively divergent supervisory approaches that might reshape that scenery. This step might address concerns about the instability of cryptocurrency standards and its prospective impact on state profits.
The bill has faced obstruction from those who cite the instability of the cryptocurrency marketplace as possibly disastrous to the tax base. Arizona State Council Minority Lead, Steve Farley has said that all taxpayers would be in jeopardy if Bitcoin were to experience a severe crash.
Jeff Weninger hopes that a move to pay the tax payment using a cryptocurrency is a step to simplify the procedure. In fact, he added, “The introduction of this new law will help in reducing the problems for its citizens in paying for taxes. No matter what you are doing. Either you are at your home watching TV or in the office doing some work; tax payment will get a lot easier. ”
With this law, now residents will be able to access to a blockchain platform with their ID information, tax records, and more other data.
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