New Hampshire Legislature Nixes Cryptocurrency Tax Payments: A Case of Volatility or Missed Opportunity?

The Rise and Fall of Crypto Payments for Taxes

In a move that left many in the crypto community scratching their heads, the New Hampshire House of Representatives recently decided to retire a bill allowing state agencies to accept cryptocurrencies for tax payments. On January 8, lawmakers deemed the legislative initiative ‘inexpedient to legislate,’ presumably in light of the wild swings seen in Bitcoin’s value.

Why Did the Bill Get Shot Down?

The primary reason cited for the rejection of the bill was Bitcoin’s notorious volatility. According to official documents, the Department of Revenue Administration (DRA) warned that allowing crypto payments could lead to an ‘indeterminable amount’ of excess spending in the fiscal year. And when your budget is more sensitive than a teenager’s emotions during prom season, that’s a hard pass.

Potential Risks to Fiscal Stability

• Unpredictable expenditures: The DRA indicated potential skyrocketing costs if they had to integrate crypto payments.
• Revenue uncertainty: They couldn’t even guess if extra tax income would result from accepting Bitcoin.
• Real vs. crypto: Tax assessments are done in good old-fashioned U.S. currency, and who knows what the value of Bitcoin will be next week?

A Historical Perspective on Crypto Tax Bills

This isn’t New Hampshire’s first attempt at making crypto tax friendlier. Back in 2015, a similar bill was pondered and promptly tossed aside with a vote of 13-4. It seems that New Hampshire’s legislature has a fear of volatility as tangible as the smell of burnt toast in a college dorm.

Comparison with Other States

New Hampshire isn’t alone in its crypto skepticism. For instance, Ohio made headlines when it first embraced the idea of accepting cryptocurrencies for tax payments back in 2018, only for the program to be put on hold a year later. Various states, including Arizona, Illinois, and Georgia, have pitched similar initiatives, but they’ve all fizzled out faster than a soda left open overnight.

And the Future of Cryptocurrency in Taxation?

With legislative reluctance to embrace crypto payments for taxes, what does the future hold? Many believe that as digital currencies mature and become less erratic, we might see a shift in attitudes. Until then, folks will have to keep rummaging through their couch cushions for spare change—or stick to the dollar bills that politicians love so much (even if they’re printed using a few too many trees!).

The Bottom Line

While some see cryptocurrency as the future of financial transactions, the New Hampshire legislature has opted for a cautious approach. The question remains: will other states follow suit or bravely leap into the unpredictable world of Bitcoin taxes? As crypto continues to evolve, governments might eventually recognize that having a little digital wildness in tax payments is worth embracing.