Bitcoin Will Kill The Income Tax

[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.

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.

You are right, but while they are after the big fish, these kind of announcements are also a way to scare small holders into compliance since they have no way to hire lawyers or accountants to fight against the tax agencies.

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[jacafbiz]

There is always a way to evade tax and Bitcoin is one of them, tax is not an issue in country, because people get little back from government so there is no need to do so, unless you want to go for political post.

[just_Alice]

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.

 

I think you misunderstood the topic. It's not about taxation killing Bitcoin but rather the other way around. With Bitcoin it's easy to evade taxation, but since most people don't use it yet it shouldn't be a big problem for the governments, for a while at least.

[m5city]

bitcoin will not kill anything, but the people who learned from bitcion and chains will make tons things, it will kills things!

[bitbob82]

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.

 

I think you misunderstood the topic. It's not about taxation killing Bitcoin but rather the other way around. With Bitcoin it's easy to evade taxation, but since most people don't use it yet it shouldn't be a big problem for the governments, for a while at least.

but i think it is already a problem for the government. because government have to turn bitcoin as legal currency first, and after that they can impost tax on bitcoin, because there is not tax on illegal thing. so if government want to impost tax on bitcoin they have to turn bitcoin as legal currency.

[whizter]

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.

 

I think you misunderstood the topic. It's not about taxation killing Bitcoin but rather the other way around. With Bitcoin it's easy to evade taxation, but since most people don't use it yet it shouldn't be a big problem for the governments, for a while at least.

but i think it is already a problem for the government. because government have to turn bitcoin as legal currency first, and after that they can impost tax on bitcoin, because there is not tax on illegal thing. so if government want to impost tax on bitcoin they have to turn bitcoin as legal currency.

i think it is not such a big problem for the government, if government wants they can turn bitcoin as legal currency, and then they can easily put tax on bitcoin

[hgmichna]

but i think it is already a problem for the government. because government have to turn bitcoin as legal currency first, and after that they can impost tax on bitcoin, because there is not tax on illegal thing. so if government want to impost tax on bitcoin they have to turn bitcoin as legal currency.

There are other ways. Germany, for example, considers bitcoin to be something akin to shares or other things that you can trade, not as a currency.

When you buy and sell bitcoin within less than a year and make a gain, this gain is taxed in Germany. If you make a loss, you also have to declare that, but you can count the loss against future gains. If, for example, you lose €100 in one year and gain €150 in the next, you only pay tax on the €50 total gain.

This is how Germany handles it. I don't know about other countries.

Of course, some people will try to keep their ownership of bitcoins secret, but the choke point is the bitcoin exchange. All exchanges I know are reached by the OECD AEoI/CRS regulation and have to report account information to the home taxman of each customer. Some exchanges may not do that yet, but then they are breaking their own country's law.

This leaves trading on LocalBitcoins.com and on the Mycelium Local Trader, but that is slow, inconvenient, and often costly, not to mention certain risks.

I think it is a good idea to fulfill your tax obligations within reason. The bitcoin hodlers are not affected in Germany, because gains from selling after more than one year are entirely tax-free.

[n0ne]

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.

 

I think you misunderstood the topic. It's not about taxation killing Bitcoin but rather the other way around. With Bitcoin it's easy to evade taxation, but since most people don't use it yet it shouldn't be a big problem for the governments, for a while at least.

but i think it is already a problem for the government. because government have to turn bitcoin as legal currency first, and after that they can impost tax on bitcoin, because there is not tax on illegal thing. so if government want to impost tax on bitcoin they have to turn bitcoin as legal currency.

i think it is not such a big problem for the government, if government wants they can turn bitcoin as legal currency, and then they can easily put tax on bitcoin

Its not that easy to make bitcoin a legal currency when the country already have a nationalized currency. Governments can make bitcoin as an currency and based upon the transactions happening with their bank accounts in relative to bitcoin taxation can be done.

[bitllionaire]

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.

 

I think you misunderstood the topic. It's not about taxation killing Bitcoin but rather the other way around. With Bitcoin it's easy to evade taxation, but since most people don't use it yet it shouldn't be a big problem for the governments, for a while at least.

but i think it is already a problem for the government. because government have to turn bitcoin as legal currency first, and after that they can impost tax on bitcoin, because there is not tax on illegal thing. so if government want to impost tax on bitcoin they have to turn bitcoin as legal currency.

i think it is not such a big problem for the government, if government wants they can turn bitcoin as legal currency, and then they can easily put tax on bitcoin

Its not that easy to make bitcoin a legal currency when the country already have a nationalized currency. Governments can make bitcoin as an currency and based upon the transactions happening with their bank accounts in relative to bitcoin taxation can be done.

actually the trend of people about currency is changing, people are taking interest in online shopping, the government have  to realize the fact and they should take some positive step about that, so if they can manage they will recognize bitcoin as legal currency and if they cannot do so then they will create their own crypto currency which they will do  control.

[bravehearth0319]

For what is happening now to our generation the community in the entire world are most often used the banking system and some in some other countries they used fiat. Where those two are centralized and we know that. So I guess if times come that bitcoin will become the currency of all countries the taxes or income tax will totally disappear.

[Senor.Bla]

For what is happening now to our generation the community in the entire world are most often used the banking system and some in some other countries they used fiat. Where those two are centralized and we know that. So I guess if times come that bitcoin will become the currency of all countries the taxes or income tax will totally disappear.

I am not sure if you understand how taxes (income or any other tax) work, because the government can collect taxes regardless if you use Bitcoin or something else and they will.

[izanagi narukami]

Depend on country policy for bitcoin. For example, my country still forbid bitcoin but if they still legalize, they will not affect local tax at all since bitcoin have different mechanism based on my constitution.

At least my goverment do for our people's good !

[Harlot]

Depend on country policy for bitcoin. For example, my country still forbid bitcoin but if they still legalize, they will not affect local tax at all since bitcoin have different mechanism based on my constitution.

At least my goverment do for our people's good !

I think what he meant was the probability of some Bitcoin users hiding their true Income to lessen their Tax by means of Bitcoin because we all know that Bitcoin  Transactions are hard to trace. Even if your provide a Bitcoin address to the government you can create a new one in order for you to hide your income. Definitely Bitcoin can lessen the National Budget of a country.

[Dudeperfect]

Depend on country policy for bitcoin. For example, my country still forbid bitcoin but if they still legalize, they will not affect local tax at all since bitcoin have different mechanism based on my constitution.

At least my goverment do for our people's good !

Agree, it depends on the country and also on the treatment of constitution. Eg: In my country bitcoin can be classified as a computer software, currency or even as a commodity under the provisions of various laws but still this assumption is debatable in the courts. I think classification also matters while determination of taxes.

[abel1337]

I think bitcoin will not kill income tax because transactions is happening online , And the government will surely make a move in order to prevent the killing of income tax. Maybe it is depending on the country.

[farhaan]

If bitcoin is accepted world wide to buy all the things like US dollar, then only income tax can be avoided.But, it is not the case.Every time, for buying anything, we have to convert bitcoins into fiat and so we have to pay tax for the fiat converted.To my knowledge, we could recharge our mobile and hardly buy products found in some offers online produced by individual persons. It would take a long time for us to avoid income tax on our bitcoin earnings.

[chixka000]

If bitcoin is accepted world wide to buy all the things like US dollar, then only income tax can be avoided.But, it is not the case.Every time, for buying anything, we have to convert bitcoins into fiat and so we have to pay tax for the fiat converted.To my knowledge, we could recharge our mobile and hardly buy products found in some offers online produced by individual persons. It would take a long time for us to avoid income tax on our bitcoin earnings.

Lol, if bitcoin can be accepted in the whole world then i guess a simple peron who has bitcoin can live through his life without using fiat. Eg(shopping,coffee,hotel etc) since btc is widely accepted he can pay all those through btc now the question would be is he evading tax pays?

[Theb]

If bitcoin is accepted world wide to buy all the things like US dollar, then only income tax can be avoided.But, it is not the case.Every time, for buying anything, we have to convert bitcoins into fiat and so we have to pay tax for the fiat converted.To my knowledge, we could recharge our mobile and hardly buy products found in some offers online produced by individual persons. It would take a long time for us to avoid income tax on our bitcoin earnings.

Lol, if bitcoin can be accepted in the whole world then i guess a simple peron who has bitcoin can live through his life without using fiat. Eg(shopping,coffee,hotel etc) since btc is widely accepted he can pay all those through btc now the question would be is he evading tax pays?

It depends on the person using the Bitcoin, because it is the man's temptation to avoid and tamper his income's transparency. That is what the government is avoiding because if our world is a Bitcoin friendly worlds than I am sure that all countries will have a lesser national budget. Having a lesser national budget will equal to less development.

[wxa7115]

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.

 

I think you misunderstood the topic. It's not about taxation killing Bitcoin but rather the other way around. With Bitcoin it's easy to evade taxation, but since most people don't use it yet it shouldn't be a big problem for the governments, for a while at least.

Believe me governments take notice of developments like this, it is no wonder why governments are all over tax havens and pressure them to give up banking secrecy or to raise their taxes or change their laws so you have nowhere to run, bitcoin has opened a new way to do it and it is not something they can destroy very easily.

[Zadicar]

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.

 

I think you misunderstood the topic. It's not about taxation killing Bitcoin but rather the other way around. With Bitcoin it's easy to evade taxation, but since most people don't use it yet it shouldn't be a big problem for the governments, for a while at least.

Believe me governments take notice of developments like this, it is no wonder why governments are all over tax havens and pressure them to give up banking secrecy or to raise their taxes or change their laws so you have nowhere to run, bitcoin has opened a new way to do it and it is not something they can destroy very easily.

For us money earners we could really saw that tax do really affects us too much but thinking it on a good way it does really help for a nation to grow even more specially when your government using it on a proper way and not on the corrupt ones.Bitcoin could really kill income tax but it would really give effect to the economy of a certain country.