Paul L. Caron

Sunday, December 23, 2018

Ohio Is The First State To Accept Bitcoin For Tax Payments

OhioWall Street Journal, Pay Taxes With Bitcoin? Ohio Says Sure:

Ohio appears set to become the first state to accept bitcoin for tax bills, a show of support for a technology that has garnered lots of hype but failed to gain traction as a form of payment.

Beginning this week, Ohio businesses will be able to go to the website and register to pay everything from cigarette sales taxes to employee withholding taxes with bitcoin. Eventually, the initiative will expand to individual filers.

The idea to accept the digital currency for taxes came from state Treasurer Josh Mandel, who has held the office since 2011 and started taking an interest in bitcoin several years ago. Mr. Mandel, 41 years old, views the new program both as a convenience for filers and an opportunity for “planting a flag” for Ohio in the currency’s adoption. ...

Ohio’s move wouldn’t give bitcoin legal status, but it would be a kind of tacit approval bitcoin has so far lacked. Tax offices accepting bitcoin “does help send a message that bitcoin’s a technology that can be used by anybody—by bad guys but also by the government,” said Jerry Brito, the director of Washington, D.C.-based research firm Coin Center.

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It is funny how historical turning points can often go by little noticed and very poorly understood at the time.

Accepting *anything* other than government fiat paper for tax payment is just such a moment.

I wonder if Mandel did this knowingly.

Western governments - subject to accelerating incompetence and corruption over the last 70 years - have been forced to lean more and more heavily on all the guises of money printing ("QE" indeed...) to finance their collective deceptions and debacles, in the face of consistently deteriorating national economies.

Their "leadership" has led to economies too sick to be financed by open fiscal means - so they have had more and more recourse to the Wormtongues of "Modern" Monetary Theory - for whom monetary debasement is the only source of their "power".

But as even the proponents of MMT will admit (and they seldom admit *anything* deleterious about their dark arts of debasement), money printing only works if the citizen-suckers are compelled to pay taxes in *fiat* - which the rotting Sovereign completely controls and can debase at will or of "necessity".

Deprive the rotting Sovereign of this power to compel use of his "Zimbabwe Ben Bernanke" helicopter monopoly money - and the citizen suckers eventually flee into alternative forms of savings - simply because they hold their value and aren't subject to the despoilation of the rotting Sovereign through forced seniorage.

The MMT Wormtongues of the DC/Academic Sewer will mock the use of Bitcoin (or Venezuela's creation of oil-backed cryto-currency or Russia's periodic puncturing of the myth of Dollar sanctity, etc). but that is to miss/intentionally ignore the *important* point - not the *form* of flight from the dollar - but the inarguable reasons *creating* the impetus for dollar exit - the multi-decade incompetence and corruption of DC...leading to the secular decline of American economic hegemony, literally papered over through government fraud and the murder of American fiscal integrity.

Posted by: sca721 | Dec 23, 2018 4:54:12 PM

Bitcoins value fluctuates quite a bit. How does the state determine what date's exchange rate to use?

Posted by: mr. burns | Dec 23, 2018 4:23:03 PM