Does the Bitcoin Foundation seek the taxability of bitcoins?

[nobbynobbynoob]

Imagine that everyone uses only Bitcoin, no conversion to fiat and back. Is it possible to catch tax evaders in such a situation?

It probably is but it wouldn't be easy.

[crazy_rabbit]

Regardless of how you earn money, you pay taxes on it. If you get paid in chickens, you pay taxes...

+1

It will only take a tax office a rather short amount of time to come up with a way to tax you. People seem to think that Bitcoin means we can get away without paying taxes, only because it seems to circumvent the traceability of money. In reality the government has unlimited power and creativity with which to tax. They would just come up with something else to get their revenue.

Might be as simple as taxing your connection to the internet, through which you run bitcoin. Or the electronic device you run Bitcoin on.

[nobbynobbynoob]

Might be as simple as taxing your connection to the internet, through which you run bitcoin. Or the electronic device you run Bitcoin on.

Those are already taxed! (So essentially, you're right.)

[benjamindees]

I'm just going to say this a few more times on these forums, because I'm sick of repeating myself.  And, frankly, I'm beginning to think that most of you are completely incapable of complex systems analysis.

If you pay taxes on Bitcoin transactions, you will relegate Bitcoin to the dustbin of history.

It has nothing to do with what you think is legal or illegal, or whether you enjoy paying taxes or not.  It's a simple, mathematical fact.

[n8rwJeTt8TrrLKPa55eU]

Regardless of how you earn money, you pay taxes on it. If you get paid in chickens, you pay taxes...

+1

It will only take a tax office a rather short amount of time to come up with a way to tax you. People seem to think that Bitcoin means we can get away without paying taxes, only because it seems to circumvent the traceability of money. In reality the government has unlimited power and creativity with which to tax. They would just come up with something else to get their revenue.

Might be as simple as taxing your connection to the internet, through which you run bitcoin. Or the electronic device you run Bitcoin on.

Moving towards simpler consumption taxes and away from 4 gazillion pages of income tax regulations might one of the nicer side effects of widespread Bitcoin adoption.

[bg002h]

I'm just going to say this a few more times on these forums, because I'm sick of repeating myself.  And, frankly, I'm beginning to think that most of you are completely incapable of complex systems analysis.

If you pay taxes on Bitcoin transactions, you will relegate Bitcoin to the dustbin of history.

It has nothing to do with what you think is legal or illegal, or whether you enjoy paying taxes or not.  It's a simple, mathematical fact.

Let's suppose for a moment you are a US citizen and you made a non-trivial sum of money in Bitcoin.  Did/would you report it as income to the IRS? They're not exactly nice about tax evasion...