February 16 the Senate of the state of Wyoming introduced a new bill which will free virtual currency from taxation.
Bill 111 was introduced by senators Ogden Priscilla, Tara, Nagarkot, Chris Rothfuss, Tyler Lindholm, David Miller and Jared Olsen. All senators are representatives of the Republican party, except Senator Rothfuss.
This bill, supported by both Republicans and Democrats, offers a list of “intangible things” that should be exempt from taxation on the property. The list includes Fiat currency, gold, checks and “virtual currency”. Virtual currency is all that digital expression represents a value as a medium of exchange or unit of value, and is not legal currency of the United States.
In the US taxation of profits from cryptocurrency is a relatively unexplored area, with the cryptocurrency assets of U.S. citizens subject to Federal property tax and payroll tax. However, the personal Finance service Credit Karma said that as of 13 February 2017, only 0.04 percent of the customers reported about their cryptocurrency income to the Tax service of the USA (IRS).
The adoption of a new law would have attracted a lot of investment in Wyoming that would create new jobs and boost the economy.
Wyoming is known for its long opposition policy on the Federal Reserve. This bill demonstrates the state’s position in relation to cryptocurrencies — the state should facilitate their free circulation, and not to look for ways to benefit from them.