Bitcoin Will Kill The Income Tax

[Sithara007]

Some of the richest men in the entire world pay less tax than you or me, what bitcoin will do is to give the average person the possibility, if they want to, to avoid paying taxes if they choose to like all those rich men.

You need to learn the difference between capital gains tax, dividend distribution tax, and income tax. Income tax is usually in the range of 30% to 50% (for those in the highest tax bracket), while the other two are usually in the range of 5% to 20%. The rates are lower, because they are paying tax over an asset which has been taxed once in the past.

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[btcdiggingmaster]

See in order to pay taxes government should come forward and they should announce that bitcoin is acceptable crypto currency, so once it happen many people will start working hard for bitcoin and they will definitely pay taxes on the form of bitcoins only, once this should happen so many countries will accept this.

Suppose if this happens means than there is no bothering of bitcoin holding because already we are paying taxes to the government.

[Kasabus]

Tax if very important to the government as it is its lifeblood, without taxes they cannot make infrastructures and maintain it. Our government will protect us with tax, but with the advent of bitcoin I think the collection will be lessen since some of the big transactions are conducted online and with the value of bitcoin now, investors are willing to hold their precious bitcoin just to hide their real worth.

[virasog]

We can say that but still people are prefer and using the fiat currency and also use the bank system, and majority of the people are here who don't know about bitcoin. Even many countries are not allow the bitcoin in government level. So may be in future, when bitcoin would be used in all over the world than might be possible bitcoin kill the income tax.

[BitHodler]

I think it won't happen as long as bitcoin user keep use legal services and government ask every legal services which accept bitcoin to include tax as well which automatically converted to their fiat currency.
The real problem when bitcoin user spend their bitcoin which don't take taxes at all such as non-registered online shop and black market.

Governments basically don't care what you are using to do business with or with what currency. Their only priority is that you pay your tax at the end.

Black markets are a different thing as they are operating on a completely illegal ground according to the law. They operate outside the regular system where governments can't do anything about.

I personally don't mind paying tax, but the problem is the amount that is being taken from you. Here the income tax sits very close to the 45% mark. I find that complete theft.

In that matter I can't blame people not declaring any of their Bitcoin related income to their local tax agency. It's pathetic as we already pay a massive amount of tax, but still the government is chasing you down.

[Juggy777]

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.

Read The Full Article

This was bound to happen and it's already happening, to give you one example would be of India Bitcoin rate touching 900 usd. People put their black money in Bitcoin. And people over the globe are doing it, cause no one really taxes Bitcoin and it's not even necessary to show it in our statement, so people have a merry. Or pay in cash and take Bitcoin one type of laundering also.

[equator]

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.

Read The Full Article

This was bound to happen and it's already happening, to give you one example would be of India Bitcoin rate touching 900 usd. People put their black money in Bitcoin. And people over the globe are doing it, cause no one really taxes Bitcoin and it's not even necessary to show it in our statement, so people have a merry. Or pay in cash and take Bitcoin one type of laundering also.

This you are telling until bitcoin is not considered as illegal in your country but once the government comes to know of this illegal activity then if they state Bitcoin as illegal to use then where will you go with the bitcoin you are holding as if you sell and get cash in your bank you will be tied up to show the transaction.
So still if bitcoin comes to legal status then surely their will be some tax law and users will have to pay taxes on bitcoin use

[Juggy777]

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.

Read The Full Article

This was bound to happen and it's already happening, to give you one example would be of India Bitcoin rate touching 900 usd. People put their black money in Bitcoin. And people over the globe are doing it, cause no one really taxes Bitcoin and it's not even necessary to show it in our statement, so people have a merry. Or pay in cash and take Bitcoin one type of laundering also.

This you are telling until bitcoin is not considered as illegal in your country but once the government comes to know of this illegal activity then if they state Bitcoin as illegal to use then where will you go with the bitcoin you are holding as if you sell and get cash in your bank you will be tied up to show the transaction.
So still if bitcoin comes to legal status then surely their will be some tax law and users will have to pay taxes on bitcoin use

There's just one slight difficulty, which country can claim it owns btc, and how will they do it. Let's assume you are in a X country the government wakes up and says let's tax Bitcoin. Now your friend lives in Y country. What if I transact all to Y country, and accepts Y country currency. So how will government tax that, what ever way, they try some one will find one way or other. I have been seeing so far there seems to be no law to tax, now things can change with the etf brining into focus Bitcoins. Let's see what happens but in near future no tax on Bitcoin.

[Vaskiy]

We can say that but still people are prefer and using the fiat currency and also use the bank system, and majority of the people are here who don't know about bitcoin. Even many countries are not allow the bitcoin in government level. So may be in future, when bitcoin would be used in all over the world than might be possible bitcoin kill the income tax.

People prefer fiat compared to bitcoin, because fiat is traditionally associated with the human life. Now bitcoin has made a revolution in the financial system. This has helped people to come up and make a better living and avoid taxation for our hard earnings.

[darklus123]

Are you all mad? Bitcoin will make collecting tax easyer as tax can be collected at source when you earn and when you spend.

UK Government (Science Office) seem to be pro crypto as you can see fron this gov doc - distributed ledger technology.pdf
An interesting read, quote....
"Distributed ledger technologies have the potential to help governments to
collect taxes, deliver benefits, issue passports, record land registries, assure the
supply chain of goods and generally ensure the integrity of government records
and services. In the NHS, the technology offers the potential to improve health
care by improving and authenticating the delivery of services and by sharing
records securely according to exact rules. "
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/492972/gs-16-1-distributed-ledger-technology.pdf

This is exactly the main reason why did the European government like the united kingdom did adopt and studied bitcoin right away because of that certain potential that you've stated(there is only a certain problem with comes to identifying its taxpayers tho, they should have to find a way about that certain matter

[Positid]

Are you all mad? Bitcoin will make collecting tax easyer as tax can be collected at source when you earn and when you spend.

UK Government (Science Office) seem to be pro crypto as you can see fron this gov doc - distributed ledger technology.pdf
An interesting read, quote....
"Distributed ledger technologies have the potential to help governments to
collect taxes, deliver benefits, issue passports, record land registries, assure the
supply chain of goods and generally ensure the integrity of government records
and services. In the NHS, the technology offers the potential to improve health
care by improving and authenticating the delivery of services and by sharing
records securely according to exact rules. "
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/492972/gs-16-1-distributed-ledger-technology.pdf

This is exactly the main reason why did the European government like the united kingdom did adopt and studied bitcoin right away because of that certain potential that you've stated(there is only a certain problem with comes to identifying its taxpayers tho, they should have to find a way about that certain matter

Wow! this could be a great news for everyone here. If the government of a certain country especially big countries it will be more popular and with popularity of bitcoin, the users will increase which would result to high price. I am glad I was able to hold my bitcoins and this good news will continue to happen.

[JeffBrad12]

Are you all mad? Bitcoin will make collecting tax easyer as tax can be collected at source when you earn and when you spend.

UK Government (Science Office) seem to be pro crypto as you can see fron this gov doc - distributed ledger technology.pdf
An interesting read, quote....
"Distributed ledger technologies have the potential to help governments to
collect taxes, deliver benefits, issue passports, record land registries, assure the
supply chain of goods and generally ensure the integrity of government records
and services. In the NHS, the technology offers the potential to improve health
care by improving and authenticating the delivery of services and by sharing
records securely according to exact rules. "
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/492972/gs-16-1-distributed-ledger-technology.pdf

This is exactly the main reason why did the European government like the united kingdom did adopt and studied bitcoin right away because of that certain potential that you've stated(there is only a certain problem with comes to identifying its taxpayers tho, they should have to find a way about that certain matter

Wow! this could be a great news for everyone here. If the government of a certain country especially big countries it will be more popular and with popularity of bitcoin, the users will increase which would result to high price. I am glad I was able to hold my bitcoins and this good news will continue to happen.

I hope won't make jokes without reading the specifically about the ledger.

[milewilda]

We can say that but still people are prefer and using the fiat currency and also use the bank system, and majority of the people are here who don't know about bitcoin. Even many countries are not allow the bitcoin in government level. So may be in future, when bitcoin would be used in all over the world than might be possible bitcoin kill the income tax.

People prefer fiat compared to bitcoin, because fiat is traditionally associated with the human life. Now bitcoin has made a revolution in the financial system. This has helped people to come up and make a better living and avoid taxation for our hard earnings.

Killing taxation would really not be an ideal thing to do. Lets say if bitcoin succesfuly killed tax because all people of a particular country do use bitcoin just to evade tax. There would be really some negative effects on its economic state thats why some government would really like to ban it because they saw the situation ahead that would really happen if bitcoin will be succesfuly adopted.

[alphablitzer]

If I were to have my salary, I would prefer it in bitcoins. If Bitcoins managed that, it would be helpful. It would benefit the people but not the government. I hope the future of Bitcoin would be brighter than it ever was before.

[Rizky Aditya]

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)

Exactly. I doubt that people will actively work for Bitcoin. Most people aren't willing to put all of their money into Bitcoin so I doubt that this will ever happen. If it ever does, they will probably find a way to fix it, and if they can't, they will just ban Bitcoin.

[Dudeperfect]

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

Not actually. I think we might be able to find some concrete practical solution for this issue (in fact, a law firm in India is working to represent bitcoin and block chain technology to the government so that there will a transparent perspective of the government towards this technology). It will be interesting to see, how the tax structure would work with the block chain technology. Yes at this moment, there are lots of uncertainties but I am sure bitcoin users will find a solution soon.

[Rahar02]

Well, that's good to hear. Killing tax does not actually kills the government but the people who are under the government.

That is an incorrect statement. Only a small fraction of the government revenues are now spent on education and social welfare. The rest is being spent on other expenses, such as employing government servants, defense, re-capitalizing bankrupt corporations.etc.

But how can the government possibly do that when they cannot function properly if it happens that there would be no more in coming tax pays from its citizens. We all do know that what keeps the government alive is the tax funds it self

If the government cannot collect taxes we cannot enjoy good infrastructures and they do not have money to corrupt, it happens in our country. But in relation to bitcoin, I guess they will take the necessary actions to tax people transacting online as it already give them an alarm and we are abruptly growing, imagine how much they can collect if they can impose taxes. But for now, we have to enjoy the tax less system.

Of course we need taxes for city/country developing to build infrastructures. Bitcoin won't kill anything include taxes, to reduce tax for some people maybe, as we know if someone invest on bitcoin, he could avoid some taxes but it different in every country depend on the regulations. The conclusion is, nobody could avoid taxes if you have something (salary, business, houses, vehicles) and if you can, government will find out and someone could go to the jail, better to play safe.

[tardi]

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.

Read The Full Article

That's a nice theory. I never though about that, but it can only work if people earn in bitcoin and pay in bitcoin and we are not quite there yet. As a libertarian this picture looks great. I hope we get there some day.

[Invulner]

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.

Read The Full Article

Well, we just need more people to realise that you don't need to dodge taxes by traditional, grey area methods anymore. There is a real, and legitimate, and completely legal(In most countries) way, called bitcoins.

Also, a globalised network means that no government can claim on an exact portion of the taxes, so it is impossible to get income tax for the government.

[sanakhan1]

i think soon , tax appear on bitcoin