OHIO SETTING AN EXAMPLE: TAX PAYING MADE EASY
In a move which has surprised many, Ohio became the first state to accept Bitcoins for citizen’s payable taxes. To some, it has been long overdue seeing the success and the frenzy it created in the couple of years. This also indicates that States are now looking at Blockchain & Bitcoin as positive step towards revolutionising the taxation system.
Though the same in not currently open for the individual filer as shall operate for businesses based in the Ohio State, the move can still be seen as very positive and as reported by the Wall Street Journal, it’s only matter of time when the same opens for everyone including the individual filers who wish to pay their taxes through Bitcoins.
JOSH MANDEL: A REVOLUTIONARY TREASURER
Josh Mandel, the man behind this initiative has already established that the state’s coffers has minimal exposure to the notoriously unstable electronic currency and that’s the reason why the money paid in Bitcoin to Ohio shall instantly be converted into US dollars through exchange BitPay.
It is important to mention that Ohio is not the only state where an initiative like this was taken but as Mr. Josh Mandel is directly elected he doesn’t need to get formal approval from the state legislature or governor – something that has stopped a number of other efforts to accept Bitcoin as a form of payment in states including Arizona, Georgia and Illinois.
This is an exclusive contract between the state and Bitpay whereby, as reported by The Register (UK)
“BitPay has promised to eat any currency variations and following a three-month “introductory period” in which it won’t charge anything, BitPay will charge a 1 per cent transaction fee. Mandel points out this commission is significantly less than the 2.5 per cent fee credit card companies charge (although pretty much every financial adviser in the world suggests that pay taxes with a credit card is a terrible idea).”
A BRIEF CRITICAL OPINION
Now, another twist to this is that there’s a high possibility that this might not continue for a very long time if the initiative is not backed by others when the Mr. Mandel leaves office as this is his penultimate year of tenure and is scheduled to end in 2019. There has also been a precedent to the same as it has already been noticed that Delaware, known for it’s innovational ways to attract business was also pushing Blockchain Technology for corporations (reported by The Register) but that effort also faded away as soon as the Governor Mr. Jack Markell left office.