Bitcoin Policy Institute
Bitcoin Policy Institute

Bitcoin Tax Payment Model

Bitcoin for America Act Hypothetical Financial Impact

What if taxes could be paid in Bitcoin?

This dashboard models the financial impact of proposed Bitcoin tax payment legislation to provide for a Bitcoin Reserve, enabling retrospective and forward-looking analyses.

MODEL PARAMETERS

Adjust the settings below to explore different scenarios.

Set the percentage of federal taxes paid in Bitcoin instead of U.S. dollars.
Current: 1%

Select the date range for your analysis.

Quick start years
Quick end years
2.5 FUTURE PROJECTIONS

Set forward-looking expected growth rates.

%
%
3. ELIGIBLE TAX TYPES

Optional: choose which tax categories can be paid in Bitcoin.

Eligible tax types

Tax types and allocations based on official IRS Data Book Table 6 (Gross Collections by Type of Tax), averaging 2010–2024.

METHODOLOGY

The model calculates Bitcoin accumulation through the following process:

  1. Daily Tax Receipt Processing: Uses actual daily tax revenue data from the U.S. Treasury for each day in the selected time period.
  2. Percentage of taxes paid in Bitcoin application: Applies the selected percentage to enabled tax categories (e.g., individual income, corporate income) to determine the USD amount that would be paid in Bitcoin each day.
  3. Bitcoin Conversion: Converts the daily USD tax payments to Bitcoin using the exact historical Bitcoin price for that specific date (from CoinGecko). For future dates, uses projected prices based on the selected BTC growth rate.
  4. Cumulative Accumulation: Adds each day's Bitcoin acquisition to the Treasury's total Bitcoin reserve, creating a running balance over time.
  5. Current Valuation: Calculates the current market value of the accumulated Bitcoin reserve using the most recent available Bitcoin price (real-time price for today, or projected price for future dates).
  6. USD Baseline Comparison: Compares the Bitcoin reserve value against a simple USD cash baseline—the sum of all USD tax payments with no interest or growth—to calculate the "Net Advantage."

This model was developed by the Bitcoin Policy Institute in collaboration with BitcoinQuant.

Disclaimer: This model is for educational and informational purposes only. The calculations, projections, and results are based on historical data, assumptions, and third-party sources that may contain errors or omissions. The model cannot guarantee accuracy, completeness, or reliability of any outcomes, and should not be used as the sole basis for financial, policy, or investment decisions. The Bitcoin Policy Institute and BitcoinQuant disclaim any liability for errors, omissions, or inaccuracies in the data, calculations, or conclusions presented.