Pay your Arizona State Taxes for 2017 with Bitcoin
You can use digital currency to buy furniture, flights, music, and food. In the state of Arizona, you could soon pay taxes with Bitcoin.
Arizona has legislation that would change the way governments look at cryptocurrencies like Bitcoin. One piece of legislation would call Bitcoin and other types of cryptocurrencies as currencies, not commodities. The other bill would allow Arizona taxpayers to pay state taxes with cryptocurrencies.
According to Arizona State Representative Jeff Weninger, these bills will send a warning to everyone in the U.S. and the world. Arizona will operate as the starting ground for blockchain technology and cryptocurrencies.
According to Weninger, the legislation he sponsored could make it easy for the people of Arizona to pay state taxes. Weninger likes the fact that you could pay your taxes with alt coins and cryptocurrency while you’re watching television, at work, or you’re at the park with your kids.
A study states that the number of people who use cryptocurrency like Bitcoin stands between 3 million and 6 million people. Many people believe that having the ability to pay your taxes through cryptocurrencies is what will happen in the future.
In Arizona, some companies allow their employees to get their paychecks because of Bitcoin. Employees can even invest a portion of their retirement funds in Bitcoin. Arizona payroll companies pay some of their employees through Bitcoin because they want to operate at the apex of changing times and they plan on encouraging this new technology.
The price for every unit for Bitcoin was six cents in July 2010. As of February 2018, the price for every unit sits at $9,300. In the time since Bitcoin started in 2009, the Bitcoins in circulation increased to over 16 million.
When cryptocurrencies get accepted, one can take them for mere coins, and you can also exchange money instantly. The new Bitcoin technology can replace our banking systems and credit cards.
Some people believe that the current systems that we have in place are enough for now. Steve Farley, an Arizona politician, states that if Weninger’s Arizona Bitcoin bill passes, taxpayers will get put at risk when Bitcoin crashes.
Farley believes that if people could pay state taxes with Bitcoin, the burden of volatility will get put on other Arizona taxpayers. The unstable money would have to go to the government, and then Arizona lawmakers would have to figure out what to do with the currency. The State Senate Minority Leader thinks that the US dollar will have to do for now when it comes to people paying their taxes. According to Farley, Bitcoin went down about 15 percent in its value a couple of days after the legislation went through committee.
Arizona politician Farley told a reporter that special interests could take advantage of the government and taxpayers. He felt that the advocates who lobbied for this bill only worked for privileges for their client.
State Representative Weninger proclaimed that Bitcoin‘s entry point is really low. He believes that the state could spend much of the revenue on educating Arizona taxpayers about cryptocurrencies.
Supporters of the bill state that adopting cryptocurrency could act like a scary process, just like adopting the Internet was a couple of decades ago. They believe that since the world will look remarkably different in two decades, the most successful people will be those who adopted cryptocurrencies when they first came about around this time. These people will operate on the front wave of this fortuitous tsunami.
Bitcoin exists only on the World Wide Web and uses blockchain technology. With this technology. A database keeps track of all transactions that take place among its users. Right now, five US states have passed and enacted blockchain legislation.
One study says that taxes might get collected for a government through blockchain technology and bitcoin mining by the year 2023. Should the Arizona bill pass, this could start happening in two years.