Bitcoin Will Kill The Income Tax

[gandame]

I think it would not kill the income tax because in my country right now, online wallet site in my country right now is registered with the government requirement for business operation, and therefore every transaction is taxable. Bitcoin has its own currency economic journey circulating the web, and it has nothing to affect with fiat currency income tax because digital currency differs from fiat.

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[Amph]

Yes. If we only used bitcoin as our transaction and not change it to fiat then we don't need to pay income tax. Still there are many possibilities for government to track and put tax for a bitcoin user. If they find bitcoin is being converted into fiat and they will apply tax there. This will be the same case for bitcoin debit cards too.

even if you don't convert  the government can find a way to trace you back, for example if you buy something directly with bitcoin a trace is left for the address of your house

if you do this aborad it should be more difficult for them to track you back, but the problem for them is also to determine the value of the goods that you bought with bitcoin

surely a pain in the ass for them which will cost them more money than simply tracking fiat users, this will put a deterrent on finding people that want to evade

[n0ne]

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

Bitcoin had created to decentralized and different from any currency of a country.
Yes, sending bitcoin is not restricted by state border and people can avoid taxes by doing it when every remittance require high fees but not for bitcoin. People could invest in bitcoin and avoid taxes, that's why IRS forced coinbase to hand over the identities of customers who made transactions through the company over three years in US. They want their taxes for sure, soon another state will follow this step, hopefully not in mine.

i think it will be more easy for the states to recognize bitcoin as legal currency, and then put tax on it, hopeful that people will happily pay their tax on bitcoin, because mostly people are loyal to their country and they want their states prosperous therefore if government will recognize bitcoin as legal currency then surely people will happily pay their tax on the income that come from bitcoin.

As quoted if bitcoin is legalised people will pay tax giving value to it. At the same if its legalised it will come under a central authority which is not good for the growth of bitcoin. For this reason people could pay taxes even before legalised based upon the transactions made or based upon the profiting.

[lOvE mE forEvEr]

I think it would not kill the income tax because in my country right now, online wallet site in my country right now is registered with the government requirement for business operation, and therefore every transaction is taxable. Bitcoin has its own currency economic journey circulating the web, and it has nothing to affect with fiat currency income tax because digital currency differs from fiat.

Your country is great, certainly in your country all the things that have to do with finances strictly regulated. Means, bitcoin is legal in your country. This news is very good for us as bitcoin users.

[jeraldskie11]

In the world of bitcoin, it is a crypto-currency that found only in the network. So that definitely it will kill the income taxes. There is no taxes in bitcoin even in transaction you had did, the government can't earn taxes with it thats reason why it kills the income tax and other countries to banned bitcoin.

[boybugs18]

if you live on a corrupt country much better to use bitcoin as you use fiat in all things you are doing in your life the government you have on your country would just get the tax and spend it for their personal use/trip so the tax they're getting to the people is useless so it is much better to use a currency that has no tax IMHO.

[Hydrogen]

Coinbase CEO Says Bitcoin Exchange Will Be 'Forced' to Fight IRS Order

In November of 2016, the Internal Revenue Service ordered bitcoin trading company Coinbase to hand over the identities of millions of customers who made transactions through the company over three years, to find out who hasn't been paying their taxes.

Now, Coinbase CEO Brian Armstrong has suggested in a Medium post that the company will go to court with the IRS, writing, "...it appears we will be forced to contest [the subpoena] in court to protect our customers' privacy, at great expense."

Online bitcoin exchanges are the key point of access for people buying or selling bitcoin. Coinbase, founded in 2012, is one of the oldest and largest.

The IRS ordered Coinbase to turn over the identities of all US customers who used the exchange between 2013 and 2015, in order to determine whether users have been paying taxes on their bitcoin.

Read More: How Coinbase Traders Are Fighting Back IRS Attempts to Reveal Their Identities

The summons has been highly controversial in cryptocurrency circles since it would reveal the identities of many people not under active investigation, and who haven't broken any laws. People do pay taxes on bitcoin (or they're supposed to), and according to the IRS, virtual currencies are treated like property for federal tax purposes.

"Asking for detailed transaction information on so many people, simply for using digital currency, is a violation of [customers'] privacy, and is not the best way for us to accomplish our mutual objective," Armstrong wrote.

Armstrong also suggested an alternate way forward for Coinbase and the IRS, which he writes is for all US bitcoin users to pay their taxes: Coinbase would send a yearly tax form that is commonly used by stock brokers to report financial gains or losses to customers and the IRS, he argued.

Read more at http://motherboard.vice.com/read/coinbase-ceo-says-bitcoin-exchange-will-be-forced-to-fight-irs-order.

Is Donald Trump a bitcoin supporter?

 

Maybe he can flip this.

He has favored tax cuts after all.

[Theb]

if you live on a corrupt country much better to use bitcoin as you use fiat in all things you are doing in your life the government you have on your country would just get the tax and spend it for their personal use/trip so the tax they're getting to the people is useless so it is much better to use a currency that has no tax IMHO.

I don't think that is a good idea. As soon as that government realizes that their national income is down then they will start investigating on what is the source of the problem. Then they will later on find out it is because of people hiding their income via Bitcoin. As you can see if many people start hiding their money like that the government will notice it quickly.

[darklus123]

~snipp

Well this one does not kill income tax haha this only skips lol. Although coinbase didn't really share the identities of it's user does that mean that they are now protecting its users? Still they got a lot of issues that needs to be handled. Us citizens of coinbase should enjoy their freedom for now and hopefully they can still do it after the pending case is done. More than that if coinbase would lose and can't have a choice but to give it to IRS then US bitcoin users of coinbase would surely be behind those bars if they can't pay the demands

[stomachgrowls]

if you live on a corrupt country much better to use bitcoin as you use fiat in all things you are doing in your life the government you have on your country would just get the tax and spend it for their personal use/trip so the tax they're getting to the people is useless so it is much better to use a currency that has no tax IMHO.

I don't think that is a good idea. As soon as that government realizes that their national income is down then they will start investigating on what is the source of the problem. Then they will later on find out it is because of people hiding their income via Bitcoin. As you can see if many people start hiding their money like that the government will notice it quickly.

Government would really notice it and as you said they will saw that tax is lowering which means its citizens are hiding something and you are right they will really discover bitcoin but i dont know on how long since bitcoin cant be traced its users.Bitcoin could really kill income tax if people would hide their money.

[kanazawa]

I agree with a guy here who said that anon crypto and Bitcoin will kill taxation and I'm still very trustful that this gonna happen. I think when people who're in the beginning or the process (in the enter and exit of the board, because it ties the non competitive situation caused by autorities)... use this currencies in the whole process.

[topesis]

Coinbase CEO Says Bitcoin Exchange Will Be 'Forced' to Fight IRS Order

In November of 2016, the Internal Revenue Service ordered bitcoin trading company Coinbase to hand over the identities of millions of customers who made transactions through the company over three years, to find out who hasn't been paying their taxes.

Now, Coinbase CEO Brian Armstrong has suggested in a Medium post that the company will go to court with the IRS, writing, "...it appears we will be forced to contest [the subpoena] in court to protect our customers' privacy, at great expense."

Online bitcoin exchanges are the key point of access for people buying or selling bitcoin. Coinbase, founded in 2012, is one of the oldest and largest.

The IRS ordered Coinbase to turn over the identities of all US customers who used the exchange between 2013 and 2015, in order to determine whether users have been paying taxes on their bitcoin.

Read More: How Coinbase Traders Are Fighting Back IRS Attempts to Reveal Their Identities

The summons has been highly controversial in cryptocurrency circles since it would reveal the identities of many people not under active investigation, and who haven't broken any laws. People do pay taxes on bitcoin (or they're supposed to), and according to the IRS, virtual currencies are treated like property for federal tax purposes.

"Asking for detailed transaction information on so many people, simply for using digital currency, is a violation of [customers'] privacy, and is not the best way for us to accomplish our mutual objective," Armstrong wrote.

Armstrong also suggested an alternate way forward for Coinbase and the IRS, which he writes is for all US bitcoin users to pay their taxes: Coinbase would send a yearly tax form that is commonly used by stock brokers to report financial gains or losses to customers and the IRS, he argued.

Read more at http://motherboard.vice.com/read/coinbase-ceo-says-bitcoin-exchange-will-be-forced-to-fight-irs-order.

I think Coinbase is just fighting a lost battle, it is their wrong decision that put their users in this position. From experience, if government need something they get it.

 

[iram3130]

I agree with a guy here who said that anon crypto and Bitcoin will kill taxation and I'm still very trustful that this gonna happen. I think when people who're in the beginning or the process (in the enter and exit of the board, because it ties the non competitive situation caused by autorities)... use this currencies in the whole process.

More than 90% of the people use cryptocurrencies so that they can evade taxes and be anonymous with the money they got. Authorities have no information about the transactions so no one can track it.

[talkbitcoin]

They really want to control us, good job for Coinbase for protecting the privacy of their clients. We are here for for privacy but if the government will enforce their laws to get our information then it will just defeat the purpose. They could make different method to let the traders who are making an income to pay the appropriate taxes but not all the users who are transacting online. Even banks has a bank secrecy law, what happen to IRS?

to me this news sounds more like a publicity stunt and it seems like they are trying so hard to keep their users and don't lose their share of the bitcoin exchange market they currently have stablished, otherwise their headquarters is located in US and they have to follow the laws of US and that will require them to cooperate with IRS eventually if they have not been doing it all along.

[Hydrogen]

I wish people wouldn't support taxation of marijuana so strongly.

Do they realize their legalized weed would be much cheaper if it wasn't heavily taxed?

Bitcoin is the same.

 

[wxa7115]

Of course it will kill the income tax especially in the US where taxes are crazy and illegal.  It could make the end of the US government and the beginning of high unemployment which will be bad for everybody. There will be a lot of chaos I think.

The taxes are even higher in Europe than in the U.S. so bitcoin could benefit more to those that live in places where there are even higher taxes than the norm, the problem is the EU has already noticed this and are trying to crack down bitcoin users and their stored coins.

[richardsNY]

Of course it will kill the income tax especially in the US where taxes are crazy and illegal.  It could make the end of the US government and the beginning of high unemployment which will be bad for everybody. There will be a lot of chaos I think.

The taxes are even higher in Europe than in the U.S. so bitcoin could benefit more to those that live in places where there are even higher taxes than the norm, the problem is the EU has already noticed this and are trying to crack down bitcoin users and their stored coins.

I think at this point the only way of getting to know who owns what in Bitcoin, is when they start forcing exchanges to release user information. Only then governments can actually find people with large amounts of coins that try to hide it from their local tax agency. It's the big fishes that they are after. I just hope exchanges will refuse these requests but I don't think they have much chances of winning against the governments.

[karawantbtc]

Of course it will kill the income tax especially in the US where taxes are crazy and illegal.  It could make the end of the US government and the beginning of high unemployment which will be bad for everybody. There will be a lot of chaos I think.

The taxes are even higher in Europe than in the U.S. so bitcoin could benefit more to those that live in places where there are even higher taxes than the norm, the problem is the EU has already noticed this and are trying to crack down bitcoin users and their stored coins.

I think at this point the only way of getting to know who owns what in Bitcoin, is when they start forcing exchanges to release user information. Only then governments can actually find people with large amounts of coins that try to hide it from their local tax agency. It's the big fishes that they are after. I just hope exchanges will refuse these requests but I don't think they have much chances of winning against the governments.

We need more faster decentraliz exchang to prevent this. Very soon.

[richardsNY]

Of course it will kill the income tax especially in the US where taxes are crazy and illegal.  It could make the end of the US government and the beginning of high unemployment which will be bad for everybody. There will be a lot of chaos I think.

The taxes are even higher in Europe than in the U.S. so bitcoin could benefit more to those that live in places where there are even higher taxes than the norm, the problem is the EU has already noticed this and are trying to crack down bitcoin users and their stored coins.

I think at this point the only way of getting to know who owns what in Bitcoin, is when they start forcing exchanges to release user information. Only then governments can actually find people with large amounts of coins that try to hide it from their local tax agency. It's the big fishes that they are after. I just hope exchanges will refuse these requests but I don't think they have much chances of winning against the governments.

We need more faster decentraliz exchang to prevent this. Very soon.

People have been asking for decentralized exchanges since the fall of MtGox, but so far none has popped up. At least, not one in major form where people want to make use of. I just wonder what the reason for this is. Is it really that difficult to launch such an exchange? I personally think the implementation of an automated system that allows people to deposit and cash out fiat is what's holding everything back.

[hgmichna]

Mycelium Local Trader. LocalBitcoins.com