An Arizona Senate bill that previously focused on state level income tax is being redesigned to focus on point-of-sale cryptocurrency taxes.
The transaction privilege tax (TPT) is a sales tax assessed at transactions throughout Arizona, United States. The new bill would automatically charge and send the “sales tax payment made to the state of Arizona, whether it’s in cash, cryptocurrencies or credit card payment,” said senator Warren Petersen, who crafted the bill. He hopes the bill will pass to make Arizona hailed as a crypto payments innovator. Petersen’s original idea applied to state income tax being paid in crypto, but called this version “much more exciting”.
Senator Petersen recognizes the dangers of over regulating cryptocurrencies since he knows that “New York was booming and then all of a sudden they had massive, burdensome regulations”. He knows that “10 companies fled the state or shut down altogether” after the regulations were implemented and said that “Arizona is not going to do that” and instead “encourage innovation and new ideas and technology”.
Regulations impede innovation and prosperity
Regulations harm most companies in similar ways, which then harms consumers. First, they create extra costs, which tightens an already tight operating margin and forces higher prices onto consumers. Second, they limit the developmental risks a company can take, which limits innovations and thus limits services and savings for consumers. Both of these scenarios encourages companies that face undue regulations to leave heavily regulated areas for lighter regulated areas, which harms the consumers living in the former through less innovation and prosperity. Senator Peterson highlighted this detrimental process with his reference to the New York bitlicense, which caused many crypto businesses to leave New York and his desire to do the opposite by making Arizona a state that crypto businesses move to and not away from.
An example of how friendly regulations benefits consumers is another U.S. state, New Hampshire, which passed bill 436 that exempted crypto users from being classified as money transmitters, which requires having to go through the onerous process of getting a money transmitter license or risk breaking the law. The bill, which recently became law, and even had the governor pose for a photo with a banner featuring the Dash logo among other cryptocurrencies, has allowed crypto businesses and usage to thrive within the state. This action has created more savings and options for consumers in New Hampshire.
Dash is already contributing to the Arizona economy
The readiness of Arizonans to adopt cryptocurrency is seen in the partnerships with Arizona State University, which totals over $400,000 to further research and education around blockchain technology. Part of the research includes studying scaling solutions, which is a much needed solution in the crypto community and also demonstrates Dash’s commitment to sustainable future growth to help consumers.
Dash’s involvement in the state has already gotten positive news coverage by the local Scottsdale, Arizona media. Dash Core CEO Ryan Taylor told the local media outlet how he believes “that [cryptocurrency is] going to be every bit transformative as the internet was to information” and explained further that cryptocurrency and Dash “really derives its value from is from the new uses it has and the problems it solves.” The local news article went on to highlight how many locations already accept Dash, many consumers are currently using Dash, and Dash’s partnership with Arizona State University. Economic theory and economic history demonstrates that less regulations will allow businesses to thrive and consumers to benefit. Since Dash has already established operations in Arizona, Dash will able to thrive further and benefit consumers even more if Arizona passes more crypto friendly regulations.