New Hampshire and Utah propose bill to PAY TAXES w/ BITCOIN

[presence]

http://le.utah.gov/~2015/bills/static/HCR006.html

https://legiscan.com/NH/bill/HB552/2015

[Keith and stuff]

I attended the first New Hampshire House hearing of the Bitcoin bill. It was cool watching a former Congressional candidate that moved his bitcoin company from CA to NH testify on the bill. Also, it was cool watching the first gubernatorial candidate to take bitcoin testify on the bill. The hearing was so popular that they had to continue it today. I wasn't able to make it today but here are the main points.

1) More Secure than Credit Cards
2) Lower Transaction Costs
3) No downside for the state
4) The future of the blockchain technology and NH leads the way

According to the links you posted, the UT bill only has 1 sponsor, a Republican. The NH bill has 8 sponsor, including 2 Democrats.

[Keith and stuff]

Here is an update for the NH bitcoin bill. The committee has has 2 public hearings. Right now, the bill is retained in the committee. That's a good thing. This is the first bitcoin tax collection bill in the nation. It would have been easy for the committee to just hold 1 public hearing and then vote the bill ITL (down). Clearly the committee is putting in a lot of work.

2/17/2015 H Executive Session: 2/17/2015 LOB 202
2/17/2015 H Retained in Committee

http://www.gencourt.state.nh.us/bill...ponsors=377283

I know a lot of people all over the world are interested in the bill. I'll try to keep folks informed on developments

[William Tell]

YAY! Pay your taxes with Bitcoin! Its such a novelty, can't you just smell the liberty?

[RonPaulIsGreat]

YAY! Pay your taxes with Bitcoin! Its such a novelty, can't you just smell the liberty?

Well, viruses or virii or whatever the correct plural of virus is, have found an effective method of infecting a host is to hide in a food supply the host desires. The goal isn't to "feed" the host, the objective is to get inside the host.

[Keith and stuff]

YAY! Pay your taxes with Bitcoin! Its such a novelty, can't you just smell the liberty?

It would be a big step forward for Bitcoin nationally. Remember when the New Hampshire government agreed to allow New Hampshire Rep. Mark Warden to take campaign donations in Bitcoin? Bitcoin enthusiasts around the world celebrated because it meant that a state government accepted Bitcoin. It's about legitimacy of Bitcoin. These bills, and the progress that's happened with the bill in NH are helping not only UT and NH, but they are helping propel Bitcoin around the world!

[presence]

my biggest concern w/ this legal progression is the thought of BTC as legal "money" and if you have 1 BTC today and trade it to an alt coin for 2 BTC tomorrow... that's somehow a taxable gain even if you never "cash out".

[Keith and stuff]

my biggest concern w/ this legal progression is the thought of BTC as legal "money" and if you have 1 BTC today and trade it to an alt coin for 2 BTC tomorrow... that's somehow a taxable gain even if you never "cash out".

People already are legally supposed to pay federal income taxes on gains via Bitcoin. It's the same for gold, silver and copper.

[William Tell]

Article I Section 10.

No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility....

http://www.law.cornell.edu/constitution/articlei

[Keith and stuff]

http://www.law.cornell.edu/constitution/articlei

It likely doesn't apply to the NH bill as the state would never get Bitcoin. The idea is to do what candidates for office usually do. A service like Bitpay would be used. The money would go to Bitpay, Bitpay would almost instantly transfer he money into FRNs, and pass it on to the state.

[Keith and stuff]

I spoke with the prime sponsor of the New Hampshire bill this weekend. He had positive things to say about the bill's chances.

[Keith and stuff]

Video via FreeKeene.com

New Hampshire Lawmakers Debate Accepting Bitcoin for Tax Payments
Stan Higgins | Published on February 24, 2015 at 23:00 GMT
http://www.coindesk.com/new-hampshir...-tax-payments/

[William Tell]

It likely doesn't apply to the NH bill as the state would never get Bitcoin. The idea is to do what candidates for office usually do. A service like Bitpay would be used. The money would go to Bitpay, Bitpay would almost instantly transfer he money into FRNs, and pass it on to the state.

So if they really aren't accepting bitcoins, its really just a sham to make Bitcoin seem "legitimate" by being vaguely recognized by some government? It looks like a waste of taxpayers time to me. Can't Bitcoin fans transfer their wealth into FRN's without government help?

I'm really not seeing any benefits in this proposal.

[Keith and stuff]

So if they really aren't accepting bitcoins, its really just a sham to make Bitcoin seem "legitimate" by being vaguely recognized by some government? It looks like a waste of taxpayers time to me. Can't Bitcoin fans transfer their wealth into FRN's without government help?

I'm really not seeing any benefits in this proposal.

Generally, this is how companies accept Bitcoin. It allows Bitcoin users to buy products without having to first convert their Bitcoin into FRNs. The companies use a 3rd party to do it for them because they want the business from the people that want to shop in Bitcoin. The government is going to get the taxes anyway, so it doesn't benefit like other companies in possibly expanding it's customer base. The only benefit the government gets is that some residents have an easier or perhaps more private way of paying taxes. Since NH doesn't have a personal income tax, the benefits to the people would be less than in a state like UT. Plus, the UT bill is happening because Overstocked.com is located in the capital of UT. If the UT bill passed, it would partly be as a thank you to the large local employer.

I see your point about how it is a sham. This is what is meant by a company accepting Bitcoin, though. Very few Bitcoin accepting companies are like Free Talk Live. Free Talk Live actually takes the Bitcoin instead of first converting it to FRNs.

[Keith and stuff]

I looked more into the UT bill and it isn't a normal bill. It is a resolution asking the state to please create a committee to study the issue. Still, a resolution is better than nothing. Even if it passes and nothing happens, at least legislators are learning about Bitcoin. The UT resolution is doing pretty well so far. The resolution was amended and the committee voted 9 to 0 in favor of it.

A Democrat in NYC is getting in on the action. Read about that here. https://bitcoinmagazine.com/19418/bi...new-york-city/