.

[0nline]

I'd hold my breath on this on until the UK make a cbdc, I'd imagine they'd put a 2-4%.inflation rate on a coin or at least produce another cbdc that has low inflation - afaik some gold coins are legal tender still (but they're worth more just to sell on than spend).


And yeah the US irs seems crazy compared with the uks hmrc - tbh my tax return taxes about 2 hours to fill in and its about 40 pages long but it is mainly checkboxes and filling in amounts - if you file wrong and they assume its an accident then its £10 a month you don't pay the tax for added to the bill (lower than a lot of interest rates if its high enough for them to investigate)...

[abhiseshakana]

I'd hold my breath on this on until the UK make a cbdc, I'd imagine they'd put a 2-4%.inflation rate on a coin or at least produce another cbdc that has low inflation - afaik some gold coins are legal tender still (but they're worth more just to sell on than spend).


And yeah the US irs seems crazy compared with the uks hmrc - tbh my tax return taxes about 2 hours to fill in and its about 40 pages long but it is mainly checkboxes and filling in amounts - if you file wrong and they assume its an accident then its £10 a month you don't pay the tax for added to the bill (lower than a lot of interest rates if its high enough for them to investigate)...

On the one hand, technology makes it easier but for taxpayers technology in currency is very scary. If the government demands transparency of the public, there should be openness and convenience for the public to access and know the allocation and distribution of their tax payment money. When people can know and prove that the tax money they pay is right on target and used for the benefit of society, they will not look for a back door to "not pay taxes".

[jaysabi]

Will the advent of CBDC's forgo the necessity of filing taxes?

Since they will be able to see every single transaction you make.....

Not at all, you are generally taxed on income but not every receipt transaction represents income.  If they were just going off receipts, they would tag refunds, any time you split a bill for someone and they pay you back, etc.  Further, in the US for example, the government already knows how much you make because it's reported by your employer, but you still have to file your taxes.  The tax rate is overly complicated, as there are all sorts of deductions and tax breaks available that you have to file to make use of.  The tax filing itself is the true up of what you owe vs. what was withheld, so it tells you what you either have to pay to settle up or what you're owed for overpaying after your deductions.  This wouldn't change with a CBDC, the system would be the same.

[MCobian]

CBDC will make it easier for the government to see all the transactions we do. So it will probably be easy to determine the amount of
tax that should be paid by each person, based on the income earned. There's very little chance that we can avoid taxes anyway,
if it is true CBDC has been used. In fact, most of the products created by the government are meant to collect taxes. So I agree that
the emergence of CBDC is indeed related to the need for tax filing.