Bitcoin is not real money unless you can “pay taxes with it”.....hmmmm ....Arizona to allow paying taxes with Crypto’s

Source: https://cointelegraph.com/news/paying-tax-in-crypto-ironically-triggers-more-taxes-expert-take
http://fortune.com/2018/02/10/arizona-bitcoin-taxes/

We had mentioned this exciting new before that Arizona may become the first State that will allow citizens to pay their State Taxes in crypto’s.

Here is the latest update:

• the final bill’s passage is still being debated in the Arizona House. It has passed the Arizona Senate.
• if passed , it will go into affect in the year 2020
• the crypto’s paid to the state would need to be converted to fiat in 24 hours of receipt
• if a taxpayer pay’s in crypto’s and the value goes down before receipt — you still owe

What is interesting to see and Arizona says as much, they want to be seen as a State that is progressive to crypto’s and blockchain technology. They would like to see companies move to Arizona and see this as a differentiator.

At a larger level, can we say the same will happen to countries? Soon, there will be startling differences between countries that are crypto friendly and those that are not.

I still fee that taxation has a LONG way to go with crypto’s. Until the government drops the taxation of crypto’s for every single transaction, we will see people hold their long term cryptos that would face high taxation. They need a law that says “under $1000” is Tax Free —- now that would encourage greater use.