Bitcoin and paying Tax

[lowcarbjc]

I was wondering, if crypto-currency takes off, and a large percentage of the world use it and then decide to stop declaring all income and stop pay taxes, how will governments build roads, support public schools etc? Won't this action raise taxes for the few that pays it and cause total havoc?
Don't get me wrong, I am totally against banks and the idea of keeping all your money in banks (if all bank customers only withdraw 3% of their savings, most banks will be bankrupt, so I am against banks) but what about government that cannot with crypto-currency determine someones income and subsequently cannot tax people to perform basic government duties?

[pooya87]

the government is going to take his taxes even with force, it doesn't matter what currency you are using for your business. as long as you are running a business in a country you have to abide by law, you can't just say i stop paying taxes because i am using bitcoin!

[dollarneed]

This is why government hates bitcoin and decentralized cryptocurencies, i imagine when bitcoin or others altcoin get fully adopted, the government can't taxed us, however this is would never happen they won't support and adopt currency where they can't control it. In fact when we trade our bitcoin to the fiat at one of the few online exchange sites, that profit is taxed right?

[nindie]

bitcoin until now still anonymous
only few countruy is regulated bitcoin
so only country regulated can tax, example japan this every transaction in exchanger charge fee tax

[tyz]

In some countries like Germany Bitcoin is already acknowledged as an asset. That means if you transfer Bitcoin to fiat money in a legal way then you have to pay taxes. However, if you buy or get Bitcoins and hold it at least one year, then it is completely tax-free.

Other Countries like Spain want to go a different way. They plan to tax the miners, too.

[KingdomHearts]

Bitcoin do not pay tax because bitcoin is not approved by any government and i think if bitcoin approve by government , and adopt the bitcoin in their country by government  then i am sure it will be pay tax on bitcoin and then i am sure we can be use bitcoin as payment method and then more and more people get awareness about bitcoin and they will use bitcoin be happy and safety .

[Fortify]

You could argue this is good for the common man, because at the moment your average joe is paying the highest proportion of tax in comparison to earnings. The richest people in the world declare losses every year while sitting on mountains of money. This would in theory force governments to look at the richest people as they have the most concentrated wealth that can be tracked more easily. I'm not sure the block chain could handle all the transactions in it's present form and governments would try to ban it if tax revenues dropped substantially.

[7788bitcoin]

In many country, the government already make it compulsory for employer to declare the salary of their employee and tax paid before the salary reach the employee's bank. Besides, there are so many loopholes through which taxes are hidden... Even if we switch to 100% bitcoin, there are still ways government tax you.

[bitjoin]

the government is going to take his taxes even with force, it doesn't matter what currency you are using for your business. as long as you are running a business in a country you have to abide by law, you can't just say i stop paying taxes because i am using bitcoin!

They will want to take tax via force but they wont know who has what is the problem.  Earnings for gov on taxes will drop and they will become less powerful.  Eventually we form a new donation based government.

[Barbut]

I don`t doubt that governments will think off something. I`m sure they will find a way to implement taxing on crypto currencies, that is simply what they do. For now they are probably investigating blockchain, and who knows what will they do in the end.
Bitcoin world is not so big now, maybe when it grow bigger and take a bigger part in world economy they will act, if they already don`t have their fingers in something. I don`t like governments, taxes and other things connected with them. I hope there will be always some kind of anonymity like we have now. Freedom is nice thing, I don`t wish to pay someone for my freedom, then it`s not a freedom.

[mindrust]

Crypto currencies will end up with a ban in most countries probably, unless they make their own national trackable crypto... Which will be a fkn nightmare for everyone i promise. They will cut fees from your money for bullshit reasons and when they don't like you they will just steal all of your money.

[sherbyspark]

The way I imagined it was, that every person will receive or will have to declare a few addresses as his own and anyone spending bitcoins or paying anyone will sort of have to declare why he is doing it. This way the government could monitor heavily. But overall, I doubt this would be successful due to all kinds of mixers and services being there.

Probably if the world becomes ready to adopt bitcoin, then a different digital currency will take its place which would have better control or monitoring by the governments.

[X-ray]

that's such a struggle indeed but the government can't do taxing with the merchant,and get the data from the companies so let's say the government will automatically taxing from our salary and it'll deducted and so does with the price of stuff,but don't sure about how to calculate a person's wealth when the world just turning out and use cryptocurrency

[Seansky]

Government of course will continue to take taxes even if large population of the world use bitcoin. They'll take tax by force since we all need to abide by the law or get caught by a police. The challenge for them though is determining the real income of one person and they'll have a hard time taxing us all. Maybe they'll just put bigger tax on daily needs etc to solve that challenge.

[cocos]

They will tax the mining machines. They can find who bought mining machines the last decade. Also they can put a tax chip into the hardware.

[bitjoin]

As i see it in order for government to mount a long term serious tax forcing attack on crypto there would need to be the same or more % of people who agree to keep government how it is.  I think the public will choose free trade this century.

[Ayers]

government will have an hard time dealing with everyone that is using bitcoin without exchanging to fiat, it's very hard for them to tax bitcoin that were never exchanged, so you are safe if you don't dump like i do, otherwise you need to declare yes, that is a granted

[eduaro66]

The first attempts at establishing cryptocurrency taxes already. And this trend scares me. In Spain miners introduced a tax of 47%

[botany]

Once Bitcoin usage becomes widespread, the tracking mechanisms will increase too.
Plus most tax is collected from corporations, who wouldn't want to be on the wrong side of the law.

[clickerz]

Bitcoin do not pay tax because bitcoin is not approved by any government and i think if bitcoin approve by government then i am sure it will be pay tax on bitcoin and then i am sure we can be use bitcoin as payment method.

Yes as of now, most government does not consider bitcoin as a money. But government is doing anything to regulate bitcoin and finally taxed it. As of now, the effects of bitcoin is not felt the those government but  when most transaction is on bitcoin, the government is losing and they will do all they can to get hold and control  bitcoin.