using non monopoly money to pay taxes..

[daoneway]

hey during the 2008 ron paul campaign i became really fascinated with austrian economics. this also very much contributed to my interest in bitcoin and the whole idea of competing currencies that hayek talked about http://www.reddit.com/r/Bitcoin/comments/1mlsuf/the_denationalization_of_money_hayek/

so my thought here was that when ron paul speaks about ending the Federal Reserve Bank he doesn't really call for eliminating it instantly he argues that it would self destruct because if you legalize money competition and get rid of the monopoly you would eventually have something like bitcoin/altcoin or gold/silver put it into a private bank and they issue "the bitcoin private reserve paper currency" or something like that, and people like it, you have money that could or should grow in value because it is scare as we all know here and nobody would even like to use paper monopoly money anymore because new market money would be way more efficient.


so lets assume that federal reserve money is gone and now we all live in my fantasy world where we have competing currencies. NOW how would you be able to pay taxes?

would there be paper money issued by the state that for example not a foreign debt bond is used as a backing for newly issued dollars but instead useful things like bitcoin or gold?


you have any idea how people could come to an agreement as to what would be an idea how you pay taxes then?
if we assume that it would still be necessary...



gold silver bitcoin altcoins are the best examples that i can come up with maybe if you have another commodity that could be used to back a currency with share your thought with me! id appreciate a lot!

[Elwar]

I am pretty sure that Congress does not use Federal Reserve notes for their spending. Their money is a mutation of the actual dollars we hold.

So there are intermediaries between your dollars and what Congress eventually spends.

Does it matter if another intermediary takes bitcoin and plugs into that conversion process?

[youdamushi]

Wahou, wtf is this idea?

Well don't get me wrong, I'm not saying it's a shitty idea.
I'm saying this idea is so... Strange and different from what we know that I don't even know what would happen!!!
Having different moneys and not an official one with a monopoly... Now THAT'S something new.
But if something like that was to happen, I'd say the result would be a complete global collapse of our current world. Which would maybe be a good thing to start on fresh bases of course. But consequences would be compeltely unexpected!

[Holliday]

Thieves aren't picky.

[Leprikon]

hey during the 2008 ron paul campaign i became really fascinated with austrian economics. this also very much contributed to my interest in bitcoin and the whole idea of competing currencies that hayek talked about http://www.reddit.com/r/Bitcoin/comments/1mlsuf/the_denationalization_of_money_hayek/

so my thought here was that when ron paul speaks about ending the Federal Reserve Bank he doesn't really call for eliminating it instantly he argues that it would self destruct because if you legalize money competition and get rid of the monopoly you would eventually have something like bitcoin/altcoin or gold/silver put it into a private bank and they issue "the bitcoin private reserve paper currency" or something like that, and people like it, you have money that could or should grow in value because it is scare as we all know here and nobody would even like to use paper monopoly money anymore because new market money would be way more efficient.


so lets assume that federal reserve money is gone and now we all live in my fantasy world where we have competing currencies. NOW how would you be able to pay taxes?

would there be paper money issued by the state that for example not a foreign debt bond is used as a backing for newly issued dollars but instead useful things like bitcoin or gold?


you have any idea how people could come to an agreement as to what would be an idea how you pay taxes then?
if we assume that it would still be necessary...



gold silver bitcoin altcoins are the best examples that i can come up with maybe if you have another commodity that could be used to back a currency with share your thought with me! id appreciate a lot!

In fact, any product demand can be used for earnings and their savings. The bankers of the Federal reserve system have the ability to adjust the amount of currency and therefore easy to manipulate demand. The same thing happens with gold.

[Elwar]

Like I said, intermediaries.

In my semi-ideal world, the only transactions taking place at the Federal Reserve banks would be between a few conversion agencies and the government.

For simplicity imagine a single company called Bitaxes. You go to their site, fill out your tax forms on their site then at the end it has a dollar amount you owe (this would be the only time dollars ever even come into play anymore). You submit your tax payment to this company in the form of bitcoins and they convert those bitcoins to dollars and send a check in your name to the IRS through the Fed bank. All your taxes get paid and everyone is happy (except you because you just got robbed).

Then when the government goes to spend money, the government gives everyone their pay checks through those Fed banks but everyone has signed up with Bitaxes company to convert their paychecks to bitcoins (because nobody uses dollars anymore except the government).

All of this could happen with no change in laws or the government changing a thing.

[Perle]

Like I said, intermediaries.

In my semi-ideal world, the only transactions taking place at the Federal Reserve banks would be between a few conversion agencies and the government.

For simplicity imagine a single company called Bitaxes. You go to their site, fill out your tax forms on their site then at the end it has a dollar amount you owe (this would be the only time dollars ever even come into play anymore). You submit your tax payment to this company in the form of bitcoins and they convert those bitcoins to dollars and send a check in your name to the IRS through the Fed bank. All your taxes get paid and everyone is happy (except you because you just got robbed).

Then when the government goes to spend money, the government gives everyone their pay checks through those Fed banks but everyone has signed up with Bitaxes company to convert their paychecks to bitcoins (because nobody uses dollars anymore except the government).

All of this could happen with no change in laws or the government changing a thing.

Not agree with you. Immediately the question will be where did you get bitcoins and why you have not paid income tax in bitcoin. Do you need it? Bitcoin attracts those people that while he did not need to pay taxes.