Rep. Davidson Bill: 'Pay Taxes in Bitcoin to Grow U.S. Reserve'

Rep. Warren Davidson has introduced legislation that would allow U.S. taxpayers to pay federal taxes in Bitcoin and direct those payments into the government's Strategic Bitcoin Reserve.

What's the scoop?

• Bitcoin for America Act: The bill, introduced Thursday, would permit individuals and corporations to settle federal tax obligations using bitcoin.
• Strategic Reserve Funding: Bitcoin paid as taxes would flow directly into the U.S. Strategic Bitcoin Reserve, established earlier this year by executive order using forfeited assets.
• Lawmaker Rationale: Davidson said the measure would strengthen America's financial position and position the country to lead in sound money and digital innovation.
• Taxpayer Choice Element: Taxpayers paying in Bitcoin could influence allocation by directing funds to the reserve instead of other spending areas like foreign aid.

Bankless Take:

Beyond a certain novelty that comes with “paying your taxes in Bitcoin,” which I personally have little appetite for, I don’t really see how this plays out. It seems essentially like offering holders the chance at patriotism by forfeiting their Bitcoin to the government. This in and of itself doesn’t feel very “Bitcoin.”