Bitcoin Will Kill The Income Tax

[Paleus]

As the age of cryptocurrency comes into full force, it will facilitate a subversively viable taxation avoidance strategy for many of the technically savvy users of peer-to-peer payment systems. In doing so, cryptocurrency use will act to erode the tax revenue base of national jurisdictions, and ultimately, reposition taxation as a voluntary, pay-for-performance function. In this post, I cover some of the benefits such a strategy will have for cryptocurrency investors, why our notion of taxation is ripe for disruption, and why cryptocurrency taxation is enabled by default.

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[thejaytiesto]

This will only be the case if people actively work for bitcoin and pay with bitcoin, so there is no need to enter the banking system at all. We need to close the circle and stay 100% within bitcoin for true freedom to happen. Also, we must guarantee that people can keep running their nodes on their basements, if we depend on corporations to run nodes then we are screwed (big blocks problem)

[billybobmaryjoe]

Bitcoin and anonymous crypto will definitely cause taxes to dry up. It will become one of the biggest problems of our lifetime.

[nejibens]

Thats hard to happen nowadays. Most people worldwide still using fiat and banking systems and few number of them know about Bitcoin and crypto currencies and deal with it. So may be Bitcoin will kill the income tax if it will become the first used currency worldwide, but that's not yet the case.

[larryfromjapan]

personally I cnat with for that to happen. Thats the only way we will get a balanced budget.

[CjMapope]

aww here i was looking forward to what seemed would be a great read and i have to be registered? like a facebook clickbait article?

ok, np, i guess, but wait, you also want my name and phone number now?.. why?
is the site not about crypto? im not giving you my personal info, nor am i being forced to give you a phony name and/or number.

Thanks but no thanks, you seem like a good writer tho, best wishes in this holiday season!

[MingLee]

It's an ok article, but it doesn't really build upon the original statement all that much to be honest.

The death of the income tax might be a beneficial thing, but it is going to be interesting to see how this changes sales taxes. Considering that people no longer have a base tax on what they earn, and they can save a large majority of it if they wish, chances are it is going to be an interesting way to fix the system.

Bitcoin killing the income tax heralds one of two things, a minimalist government form (increased libertarianism) or a more totalitarian or intrusive government.

[yayayo]

Overall, I agree with the assessment, that Bitcoin might ultimately kill taxation in its current form. However a precondition is that Bitcoin improves in terms of privacy. And it won't happen as a smooth transition, because resistance by those who source their power from taxation will be fierce. First of all we will see more surveillance and harassment by the officialdom. Only after they've experienced that such actions are to no avail we might move on to a better system.

Voluntary, pay-for-performance taxation is the ideal form of taxation, because it is the least wasteful and ensure that only those things are funded that bring real benefits for the citizen. Ideally, citizen would be able to propose improvement projects (e.g. "the street in my neighborhood is in bad shape and needs a new surface"). Subsequently, people would be able to donate "taxes" for what they think are the most relevant projects.

ya.ya.yo!

[Xester]

Overall, I agree with the assessment, that Bitcoin might ultimately kill taxation in its current form. However a precondition is that Bitcoin improves in terms of privacy. And it won't happen as a smooth transition, because resistance by those who source their power from taxation will be fierce. First of all we will see more surveillance and harassment by the officialdom. Only after they've experienced that such actions are to no avail we might move on to a better system.

Voluntary, pay-for-performance taxation is the ideal form of taxation, because it is the least wasteful and ensure that only those things are funded that bring real benefits for the citizen. Ideally, citizen would be able to propose improvement projects (e.g. "the street in my neighborhood is in bad shape and needs a new surface"). Subsequently, people would be able to donate "taxes" for what they think are the most relevant projects.

ya.ya.yo!

Well that is a nice idea, pay-for-performance taxation, the government will no longer collect taxes but only consolidates. But it maybe effective to certain countries but not on the Philippines. Using bitcoin to kill taxation might be effective to other countries but in the Philippines many are non taxpayers, and businessmen doe not declare their income properly. If voluntary taxation will be implemented I am sure that the government system will collapse in our country.

[legdunes]

Nice idea overall but we are still a long way from realizing this dream. The first priority should be to increase adoption.

[mrcash02]

It's an ok article, but it doesn't really build upon the original statement all that much to be honest.

The death of the income tax might be a beneficial thing, but it is going to be interesting to see how this changes sales taxes. Considering that people no longer have a base tax on what they earn, and they can save a large majority of it if they wish, chances are it is going to be an interesting way to fix the system.

Bitcoin killing the income tax heralds one of two things, a minimalist government form (increased libertarianism) or a more totalitarian or intrusive government.

Everybody expects a more minimalist government with more freedom for all, but if we don't pay taxes, we need better jobs with better salaries to be able to buy and hire all necessary services that we currently have ''for free'' in some countries. I never experienced a libertarian economic system, because I live in a junk bolivarian ~socialist~ country. But the expectations are good for a new economic system with more freedom for al, I hope this happen, so we can see something new and fresh.

[Zadicar]

Overall, I agree with the assessment, that Bitcoin might ultimately kill taxation in its current form. However a precondition is that Bitcoin improves in terms of privacy. And it won't happen as a smooth transition, because resistance by those who source their power from taxation will be fierce. First of all we will see more surveillance and harassment by the officialdom. Only after they've experienced that such actions are to no avail we might move on to a better system.

Voluntary, pay-for-performance taxation is the ideal form of taxation, because it is the least wasteful and ensure that only those things are funded that bring real benefits for the citizen. Ideally, citizen would be able to propose improvement projects (e.g. "the street in my neighborhood is in bad shape and needs a new surface"). Subsequently, people would be able to donate "taxes" for what they think are the most relevant projects.

ya.ya.yo!

Well that is a nice idea, pay-for-performance taxation, the government will no longer collect taxes but only consolidates. But it maybe effective to certain countries but not on the Philippines. Using bitcoin to kill taxation might be effective to other countries but in the Philippines many are non taxpayers, and businessmen doe not declare their income properly. If voluntary taxation will be implemented I am sure that the government system will collapse in our country.

I do agree with you but actually it really depends on the tax implementation of a certain country and we all know that citizens of each country are not the same and in reality there are really people would intend to evade taxes because they saw it will get a part on their money and some dont like that but taxes is for good on a certain country thats why its really an obligation but i hope it wont be high enough so that people could confidently able to pay. Regarding to bitcoin it will surely kill income tax but not all people knows bitcoin and country does really needs a tax for its improvement.

[The_Dark_Knight]

If the governments are unable to get income tax then I think they will change and adapt and instead they will try to tax your wealth, there are some governments already studying the possibility of doing that, personally I prefer smaller governments, but I don't get to choose.

[Huge Black Woman]

Dang, them's a lotta big words.  But there ain't no way bitcoin is gonna do much for taxation.  You really think gubbaments is gonna allow that?  Don't think so.  They'll buy up all them, or seize them, then they'll send them to a burn address.  You watch.  Mm hmm.

[Positid]

I have thought of this a long time ago, one of the reason why people are coming in here to earn and transact bitcoin is to aviod being tax by the government. We know that taxes are not only a minimal amount, in our country for income tax I have to pay like 20% of my income which is really big if you were to declare all your earnings.

Right now, we just have to enjoy this kind of benefit but I am pretty sure the government is doing what they can to collect taxes.

[mescalito]

If govt. can’t crack encryption, then people are walking around "with a Swiss bank account in their pocket."

Barrack Obama 

[raja2sumi]

Yes it will totally kill the income tax .when people will totally depend on bitcoin which is a digital cryptocurrency that is they dont need any 3rd party .so why will they depend on banks ,as there will be no banks at all after quite some time .

[n0ne]

Bitcoin will truly affect the taxation issues, but right now users were converting to flat through bank accounts and using it. This possibly help government to some extent to levy taxation based upon the banking transactions.

[pooya87]

this is not entirely true because first of all bitcoin is mostly an investment not our salary or day to day money to spend. and also it is because of this simple thing that there aren't taxes yet on bitcoin and its usage. and that will change if bitcoins starts to become more popular for payments and for salary.

[geopolisch]

But I heard some developing countries are internally proposing to withdraw the process of collecting income taxes. It could be a new revolution like they are thinking only taxes from business and properties are more than enough to run a government.

So, I believe bitcoin will not be the game changer here. It is a new trend that governments start think in different way.

http://www.thehindu.com/news/cities/mumbai/news/Will-abolish-income-tax-in-three-years-says-Swamy/article14395234.ece