Bitcoin Tax Free Digital Economic Zone Proposed by US Policy Group
CryptoNewsTerminal Staff08 Aug, 2024
Bitcoin Tax Free Digital Economic Zone Proposed by US Policy Group
Bitcoin has been a topic of discussion for quite some time now. The US policy group, USABTC has proposed the creation of a BTC tax-free digital economic zone (DEZ). The idea is to allow for only sales tax to be levied within the zone, and not capital gains tax. USABTC argues that "direct government purchase of BTC is not feasible. It makes more sense to provide economic zones where bitcoin transactions can occur tax-free while taxing the spending of those coins. This creates a new revenue stream for governments and should be a win-win for both state and federal governments, as well as the Treasury." As part of the plan, USABTC said it would build a pegged BTC system on layer-two solutions, and work with regulators such as the Internal Revenue Service (IRS).
