I am the creator and moderator of the Crypto_Currency_News subreddit. Each day I invite the world to post links to their favorite Bitcoin and crypto related articles. Here I plan to give my thoughts on popular articles I have opinions on.
Today’s article is Wyoming Senate Bill Proposes to Exempt Cryptocurrencies from Taxes posted at UseTheBitcoin.com.
For those of you around the world unfamiliar with Wyoming, it is a state in the central-western United States and is sometimes known for promoting freedom from an over-reaching federal government with its laws. People there would generally prefer to live by the ideas and statues defined in the Constitution of the Unites States than by the system we have today.
This proposal does not mean the citizens would be free from Federal government taxes though. The basis of this article is the introduction of a bill relieving residents of Wyoming from paying state income tax, currently between 4% and 6%, on Crypto-currency gains. The Federal government will still expect to receive their share, which is generally much higher and can reach over 40%.
I find it ironic the government does not recognize digital currencies as currencies, but still expects people to pay taxes in US Dollars when the value of these non-currencies goes up. Is it a currency? I guess it depends who you ask…
Arizona, another western state, recently pushed a state bill to let people pay taxes with crypto. I personally don’t mind paying taxes if that is the law, but I should be allowed to pay them in the cryptocurrency profits I am being taxed on. Again though, they can only control Arizona state taxes. Federal agencies will not allow crypto payments.
I think it this is an important article. The more acceptance Bitcoin and other digital currencies see, the more likely they will have more value in the future. It is important for both state governments and others around the world to push these types of forward thinking laws until the powers-that-be have to address the reality of the existence of these new currencies.