U.S. Rep. Warren Davidson (R-OH) introduced legislation that would allow Americans to pay federal taxes in Bitcoin.
As part of the bill, the Bitcoin for America Act, federal tax payments would be directed into the Strategic Bitcoin Reserve.
“The Bitcoin for America Act marks an important step toward modernizing our financial systems and embracing the innovation that millions of Americans already use every day,” Davidson said. “By allowing taxpayers to pay federal taxes in Bitcoin and having the proceeds placed into the Strategic Bitcoin Reserve, the nation will benefit by having a tangible asset that appreciates in value over time—unlike the U.S. dollar, which has steadily lost value under inflationary pressures. This bill will give the American people more choice in paying their taxes as well as give our government a stronger financial foundation. The Bitcoin for America Act will position our country to lead—not follow—as the world navigates the future of sound money and digital innovation.”
Davidson said that Bitcoin’s fixed 21-million-coin supply creates scarcity, giving it a strong long-term record of appreciation versus inflationary currencies. He added that depositing Bitcoin payments into the Strategic Bitcoin Reserve will diversify U.S. assets and create a durable, independent store of value.
The congressman noted that China and Russia are already accumulating Bitcoin, so this bill would ensure the U.S. doesn’t fall behind in global financial competition. Further, he argued that Bitcoin’s decentralized, permissionless system expands financial access.
Davidson also said that Bitcoin’s independence from inflationary monetary policy allows the Reserve to protect against dollar erosion and long-term economic risk.