A bill in the United States introduces a new favorable tax rule for bitcoin. If passed, the law would no longer impose a capital gains tax on bitcoin transactions of $200 or less.

Profits Tax

At the time of writing, Americans would pay income tax on every bitcoin transaction if there was a gain in the purchase price. This does not make it any easier to adopt bitcoin as a means of payment.

Breaking News: Bipartisan U.S. Bill Would Make #Bitcoin Trading Tax-Free If Capital Gains Fall Below $200

-Bitcoin Magazine (@BitcoinMagazine) February 3, 2022

Suzan DelBene, a member of the Democratic Party and co-author of the new law, told Bitcoin Magazine that the current legislation is outdated. "Digital currency doesn't take into account its potential use in everyday life. In this regard, bitcoin is more like a stock or ETF. The new law should open the door for bitcoin and strengthen the U.S. digital economy."

Digital currency is reshaping our daily lives

It's interesting to see how some of the political forces of a global power like the United States view the importance of Bitcoin. Bitcoiners fear government repression, but the opposite seems to be happening right now. More and more politicians are showing up as bitcoiners. "Digital currencies are reshaping our daily lives, and America needs to recognize this and work to treat digital currencies fairly in our tax code," said Rep. David Schweikert.

Schweikert and Suzan DelBene were responsible for writing the new tax law. "This legislation is an important step forward that lays the foundation for developing our digital economy," Schweikert continued.

If new legislation is passed in the U.S., bitcoin adoption could advance rapidly. Previously, you could pay in bitcoin, but it wasn't practical. If you also had to pay capital gains taxes on every cup of coffee or hamburger, life would suddenly become very expensive.

New Legislation

The new bill would amend the Internal Revenue Code of 1986. In principle, there are few changes. Unless the law doesn't apply to transactions of $200 or less. This is clearly aimed at promoting bitcoin as a means of payment in the United States.

At this point, not only do you have to pay taxes on every profitable transaction, but you also have to keep track of everything. As a result, paying for coffee in Bitcoin requires a lot of work. Now it seems that paying in Bitcoin is becoming more and more realistic in one of the world's largest economies.

This is a much-needed step in the development of Bitcoin as a currency. Bitcoin can be used as a means of savings in the United States, but payments are also an important function of money. It is possible and likely that people will now take bitcoin more seriously as a currency. If the legislation is passed, it could be used as a means of payment for the first time in the United States.