The more mainstream cryptocurrencies become, the more valuable they are sure to be, and the latest out of Arizona is definitely going to peak the interests of those supporting cryptocurrencies. Arizona could become the first state in the US to accept cryptocurrencies as payment for taxes.
Arizona's SB1091, sponsored by Sen. Warren Petersen (R-Gilbert), is a new bill that, if signed into law, would allow tax payments to be made in cryptocurrencies, including the popular Bitcoin.
The text of the bill reads as follows:
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 43-505, Arizona Revised Statutes, is amended to read:
43-505. Tax payments made to department; order of crediting
A. The tax and any interest and penalties shall be paid to the department. Remittances may be in the form of EITHER:
1. A check payable to the department during such A time and under such regulations as the director may prescribe. If a check is not paid by the bank on which it is drawn, the taxpayer tendering the check shall remain IS liable for the payment of the tax and all interest and penalties as if he had THE CHECK WERE not tendered the check.
2. A PAYMENT GATEWAY, SUCH AS BITCOIN OR OTHER CRYPTOCURRENCY, USING ELECTRONIC PEER-TO-PEER SYSTEMS. THE DEPARTMENT SHALL CONVERT CRYPTOCURRENCY PAYMENTS TO UNITED STATES DOLLARS AT THE PREVAILING RATE WITHIN TWENTY-FOUR HOURS AFTER RECEIPT AND SHALL CREDIT THE TAXPAYER'S ACCOUNT WITH THE CONVERTED DOLLAR AMOUNT.
B. The department shall credit payments against a taxpayer's unpaid tax liability before crediting payments against any interest or penalties.
"This is all about ease and convenience," Petersen said. "Here in government, we are here to serve the people."
"Some of the people saying this is dumb are the same kind of people when the Internet first got going would say it's dumb," Petersen said.
AZ Central reports:
The value of Bitcoins has swung wildly in recent months. For example, on Nov. 6 the value was $5,878. On Dec. 11 it was more than $19,000. It was at $8,553 Friday.
Sen Steve Farley, D-Tucson, shared his concerns before the Senate approved the bill Thursday.
"The state Department of Revenue is having a hard enough time doing its job with the cuts that have been made to auditors collectors and other people like that," Farley said. "To give them another task is a difficult thing to do."
He pointed out the volatility of Bitcoin.
"What this does in effect is transfer the volatility risk of the person paying their taxes and onto the Department of Revenue and thus all other taxpayers," Farley said. "We take American dollars at the Department of Revenue to pay taxes. I think American dollars ought to be good enough."
"Even if for some reason the state doesn't receive what was sent, the state will only credit you with what is received," Petersen said.
Petersen also said that Farley's comments were only part of the reality.
"What the good senator failed to mention, it is true that it has dropped ... he forgot to mention it's gone up 4,000 percent," Petersen said.
Take a look at the US Inflation calculator for what an item would have cost you in 1913 and what it costs in 2018. An item that cost you just $20 in 1913 now costs you nearly $500! Just how much is our own currency manipulated?
Coin Telegraph adds:
Arizona State Republican Rep. Jeff Weninger, who co-sponsored the bill, said the tax measure intends to turn the state into a center of “blockchain and digital currency technology in the future”. Referring to the tax bill, Weninger told Fox News this week:
"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."
One problem that might get in the way of tax payments with cryptocurrency is the Constitution's provisions in Article I, Section 10:
"No State shall... make any Thing but gold and silver Coin a Tender in Payment of Debts."
While some may argue that the paper money we carry is backed by gold, I ask why we can't take it to a bank and trade it for gold or silver like those in the past did? I think it becomes clear that the banksters manipulated Congress and wicked politicians in the past to orchestrate this fleecing of the American people in 1913, and so the door was wide open to violate the Constitution in this area. We're already paying our debts in something other than gold and silver. We're paying in debt money.
I have my doubts about cryptocurrency, but I also like the anonymity as well as the decentralization by government over it. Let's face it, that paper money in our wallets is debt money. Sure, it can purchase things, but look at the numbers! Perception seems to be the reality when it comes to money, and it looks like cryptocurrencies are going to be playing a major role in the future.Don't forget to Like Freedom Outpost on Facebook, Google Plus, & Twitter. You can also get Freedom Outpost delivered to your Amazon Kindle device here.