This week, Ohio became the first U.S. state to accept bitcoin for tax payments from businesses. Eventually, the payment form will be open to individual filers as well. Could more states follow suit in embracing the cryptocurrency as a legitimate form of currency?
Associate professor Lee McKnight in the School of Information Studies at Syracuse University teaches blockchain management. He says Ohio’s move to accept bitcoin is well timed, but says the cryptocurrency tax portal is really more for bragging rights.
McKnight says:
“Ohio’s move to accept bitcoin for tax payments is well-timed. If Ohio started one week earlier, the state would have already lost 20 percent, as cryptocurrency prices plummeted.
“For businesses which have been holding cryptocurrency assets for the past year, taking the 80 percent loss in value from market peak December 2017 – and deducting from their Ohio state business taxes to the extent permitted by law – may also make sense. As a fraction of total state tax receipts however, it is likely to be a low number of businesses that choose to make payments this way. So, Ohio’s supposed cryptocurrency tax portal is really just a sideshow for publicity and bragging rights.
“The real innovation and real market opportunities for application of blockchain technology are found mainly in non-transparent corners of businesses and governments worldwide. Following Ohio into explicitly backing use of cryptocurrencies is not the right way to think of blockchain adoption and innovation for economic growth for states. Especially since many European and Asian nations, and Canada, are well ahead of the United States, generally speaking.
“Undoubtedly, more U.S states and the federal government will work on catching up.”
To request interviews or get more information:
Daryl Lovell
Media Relations Manager
Division of Marketing and Communications
T 315.443.1184 M 315.380.0206
dalovell@syr.edu | @DarylLovell
820 Comstock Avenue, Suite 308, Syracuse, NY 13244
news.syr.edu | syracuse.edu
Syracuse University
It is becoming ever more obvious that last week’s horrific scenes on Capitol Hill were not a one-off. Interviewed yesterday, former FBI Deputy Director Andrew McCabe was shocked by the magnitude of the bureau’s intelligence on possible new violence. “I…
Steven White, Ph.D., is an assistant professor of political science at Syracuse University’s Maxwell School of Citizenship and Public Affairs who has studied Southern politics. White specializes in American politics, American political development, race and politics collectively. White provided remarks…
More American renters could be evicted from their homes in January than in any month ever, as protections put in place during the COVID-19 pandemic expire unless a last-minute deal is reached to extend them. Between 2.4 million and 5…
Nearly 50 U.S. attorneys general have filed an antitrust suit against Facebook, making it the second Big Tech company to face the legal allegations. The AGs say Facebook’s practice of buying up competitors, such as WhatsApp and Instagram, removes alternatives…
Britain announced its biggest military spending increase since the Cold War on Thursday, pledging to end the “era of retreat” as it seeks a post-Brexit role in a world Prime Minister Boris Johnson warned was more perilous than for decades….
If you need help with your subscription, contact sunews@syr.edu.
