- Arizona and Wyoming are racing to become the first US states to allow tax payments with crypto.
- The Arizona and Wyoming crypto bills are faced with legal setbacks.
- “#ReduceCryptoTax’’ trends on Twitter (NYSE:TWTR).
Two US states are on the verge of becoming the first few US states to permit people to pay state taxes with crypto.
Arizona and Wyoming state lawmakers are considering passing legislation that will allow taxpayers to pay their taxes using cryptocurrencies. The Arizona proposal would have the state acknowledge Bitcoin “as a legal tender to pay debts, public charges, and dues.”
On the other hand, the Wyoming bill would only allow crypto token payments for sales and use taxes. But unlike the bill from the Arizona legislators, the Wyoming legislation will not be limited to any cryptocurrency.
Colorado Governor, Jared Polis, underlined his plan to make the state a leader in crypto acceptance. In an interview, Polis took pride in Colorado’s crypto innovations and stated that Colorado is one of the earliest states to adapt to the crypto trend.
However, the crypto proposals face two legal challenges. First, Arizona law states that creating a new legal tender would be unconstitutional as the constitution prevents states from issuing their own money. Second, the Internal Revenue Services (IRS) classifies crypto as property, not currency. This means citizens would first have to pay taxes on crypto before they could pay their other taxes using their tokens.
Nonetheless, US citizens, particularly those from Arizona and Wyoming, should expect the approval of one of these bills within the year.
In other news, crypto enthusiasts on Twitter have been trending “#ReduceCryptoTax”, which calls to slash the current 30% tax on crypto transfers.
In a tweet, WazirX founder and CEO, Nischal Shetty, assured crypto supporters that their team is already presenting issues with the current crypto tax legislation.
It’s funny how some are angry at me that there is 30% income tax on CryptoAs an industry we’re already representing issues to the GovernmentReducing 30% tax for lower income is something we’ve highlighted in our representationBut YOU should speak up too#ReduceCryptoTax— Nischal (Shardeum) (@NischalShetty) February 17, 2022
Shetty further stressed that they have always “highlighted” the reduction of the 30% crypto tax for low-income earners in their presentations to the government and urges crypto enthusiasts to speak up regarding the issue, starting the hashtag “#ReduceCryptoTax”. This move aims to gain attention from Indian authorities and decision-makers.