ForexMinute.com — New Hampshire representative Eric Schelen recently proposed the inclusion of Bitcoin for state tax purposes.
The statement quickly influenced the New Hampshire state legislature to hold a couple of meetings to discuss the new bill, which was attended by a number of Bitcoin veterans and politicians, including Ziftr CEO Bob Wilkins and former gubernatorial candidate Andrew Hemingway.
During these meetings, Schelen briefly described the benefits a taxpayer and government could receive from Bitcoin as a payment mean. He further stressed on New Hampshire to be the first state to implement Bitcoin-based tax payments. “If New Hampshire can lead the way in the primary process, and we can lead in other ways, why don’t we lead the way to being the first state to actually implement a process,” Schelen told the committee.
“It’s going to happen, all 50 states are going to do this. Why don’t we be the first?”
State Won’t Hold Bitcoin
For obvious reasons, many members of the committee were concerned about the Bitcoin’s volatility. Some even were worried in case there is not even a Bitcoin market to exchange cash from. At first, Schelen neatly gave an example of a businessman paying $1,000 as state tax through Bitcoin. “Whatever the conversion rate will be,” he said, “the state get a $1,000 in US dollars.”
During his testimony, Zift CEO Wilkins also agreed to the troubles related to Bitcoin’s volatility but also suggested that the exchange process would take place between a taxpayer and third party company. The government therefore has nothing much to do but to receive the due tax without delay.
In simple words, the bill, if passed, would rely on payment processors like BitPay to forward the transactions in fiat money.
Mixed Reaction from Committee
There were all kinds of mindsets available in that room that judged Bitcoin upon their strict understandings. There were members who wished to try out this new payment technology, while there were also many who simply opposed the idea of such an integration. For instance, New Hampshire Liberty Party co-founder Darryl Perry argued about the conflicts with Federal Laws once the Bitcoin tax bill is passed.
“I don’t want it to be easy for the collection of fees,” he commented.