Bitcoin Will Kill The Income Tax

[bestluck]

I think this cannot be, because, if our local governments will handle bitcoins, it will implement bitcoins to have tax, we know that local government always that thought of having additional fees on it. We know that kind of additional fees will be going to affect on us. We should think about what will gonna happen on it

I think these governments will not be able to impose tax because of having control on it as they are not able to get control on bitcoin due to its feature of decentralized currency but if they will charge the exchanges for collecting that tax from them then that will be the way to impose tax on it. The tax on these exchanges will be according to the exchanges occurred by these exchanges or the total deposit to them via the bank transfer.

[acroman08]

I think this cannot be, because, if our local governments will handle bitcoins, it will implement bitcoins to have tax, we know that local government always that thought of having additional fees on it. We know that kind of additional fees will be going to affect on us. We should think about what will gonna happen on it

I think these governments will not be able to impose tax because of having control on it as they are not able to get control on bitcoin but if they will charge the exchanges then they will be the way to impose tax on it.

I guess imposing a tax on every exchange transaction of bitcoin will be the
loophole for the government to put a tax on a decentralized currency.

[deisik]

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.

Yeah i agree to you. As they said, there are 2 types  that we can never be avoided, the death and the taxes, but some also said that "Death can be avoided but tax can never be avoided" it is quite funny since it is true  , we can't avoid by paying taxes or even the death. Yes maybe bitcoin can kill the income tax but when? for sure it would take a long years to do that. Theres no harm to wait

This will not happen.  No government will say "oh look there is this thing called Bitcoin, we should forget about all the millions income taxes bring us and let it be a thing of the past". So there will always be an income tax. Generating income and not paying that is and will be in the future illegal. If you think Bitcoin might help you to not pay it, then this is your opinion, but it is still not allowed and pleas tell nobody anything else

You are not correct on this

A few governments are essentially doing something to that tune. You obviously miss one important thing, i.e. that it cuts both ways. More precise, if a government openly declares Bitcoin as a taxable asset, it inadvertently but unequivocally admits that Bitcoin is perfectly legit since you can't possibly tax something which is illegal. And the governments in question are not going to do this (at least, not until there is wide-scale adoption among masses), and thereby Bitcoin might remain factually tax-exempt in these countries

[fullypak]

I think this cannot be, because, if our local governments will handle bitcoins, it will implement bitcoins to have tax, we know that local government always that thought of having additional fees on it. We know that kind of additional fees will be going to affect on us. We should think about what will gonna happen on it

I think these governments will not be able to impose tax because of having control on it as they are not able to get control on bitcoin but if they will charge the exchanges then they will be the way to impose tax on it.

I guess imposing a tax on every exchange transaction of bitcoin will be the
loophole for the government to put a tax on a decentralized currency.

It's not possible to put a tax on bitcoin transaction. If the government decides to put a tax on Bitcoin transaction, it will be a big headache for govt. They will get a lot of problems, and they will struggle a lot to control this Bitcoin trasnsaction. If they decided to collect the tax, then bitcoin banks must open. Then only the govt can able to track the record. I think this much risk govt will not take. But if bitcoin transaction will increase in all sectors yes BTC will kill income tax.

[deisik]

I think this cannot be, because, if our local governments will handle bitcoins, it will implement bitcoins to have tax, we know that local government always that thought of having additional fees on it. We know that kind of additional fees will be going to affect on us. We should think about what will gonna happen on it

I think these governments will not be able to impose tax because of having control on it as they are not able to get control on bitcoin but if they will charge the exchanges then they will be the way to impose tax on it.

I guess imposing a tax on every exchange transaction of bitcoin will be the
loophole for the government to put a tax on a decentralized currency.

It's not possible to put a tax on bitcoin transaction. If the government decides to put a tax on Bitcoin transaction, it will be a big headache for govt. They will get a lot of problems, and they will struggle a lot to control this Bitcoin trasnsaction. If they decided to collect the tax, then bitcoin banks must open. Then only the govt can able to track the record. I think this much risk govt will not take. But if bitcoin transaction will increase in all sectors yes BTC will kill income tax

They don't have to tax Bitcoin transactions specifically

All they need to do is to make legal an income earned through Bitcoin operations (that basically means legalizing Bitcoin as I said earlier). But if they legalize this income, in most jurisdictions that would effectively imply that you have to pay an income tax on capita gains obtained by buying and selling coins. And to make you pay this tax (i.e. catch you if you are going for tax evasion), they just need to control fiat in and outs that can be used to go into Bitcoin and exit from it

[Senor.Bla]

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.

Yeah i agree to you. As they said, there are 2 types  that we can never be avoided, the death and the taxes, but some also said that "Death can be avoided but tax can never be avoided" it is quite funny since it is true  , we can't avoid by paying taxes or even the death. Yes maybe bitcoin can kill the income tax but when? for sure it would take a long years to do that. Theres no harm to wait

This will not happen.  No government will say "oh look there is this thing called Bitcoin, we should forget about all the millions income taxes bring us and let it be a thing of the past". So there will always be an income tax. Generating income and not paying that is and will be in the future illegal. If you think Bitcoin might help you to not pay it, then this is your opinion, but it is still not allowed and pleas tell nobody anything else

You are not correct on this

A few governments are essentially doing something to that tune. You obviously miss one important thing, i.e. that it cuts both ways. More precise, if a government openly declares Bitcoin as a taxable asset, it inadvertently but unequivocally admits that Bitcoin is perfectly legit since you can't possibly tax something which is illegal. And the governments in question are not going to do this (at least, not until there is wide-scale adoption among masses), and thereby Bitcoin might remain factually tax-exempt in these countries

Maybe you have a hard time understanding this, but positivezero is talking about the abolishment of all income taxes, just because of Bitcoin. This will never happen and this also has nothing to do with the legal status or taxability of Bitcoin.

[olushakes]

Bitcoin killing income tax is the last thing that will happen under the watch of government in short, it wont happen. Thats is a major source of revenue to government and that is important if its still going to function continuously. Its either government finds a way to get its own cut from bitcoin transactions and if that seems impossible, ban everything all together.

[Amph]

I think this cannot be, because, if our local governments will handle bitcoins, it will implement bitcoins to have tax, we know that local government always that thought of having additional fees on it. We know that kind of additional fees will be going to affect on us. We should think about what will gonna happen on it

I think these governments will not be able to impose tax because of having control on it as they are not able to get control on bitcoin but if they will charge the exchanges then they will be the way to impose tax on it.

I guess imposing a tax on every exchange transaction of bitcoin will be the
loophole for the government to put a tax on a decentralized currency.

It's not possible to put a tax on bitcoin transaction. If the government decides to put a tax on Bitcoin transaction, it will be a big headache for govt. They will get a lot of problems, and they will struggle a lot to control this Bitcoin trasnsaction. If they decided to collect the tax, then bitcoin banks must open. Then only the govt can able to track the record. I think this much risk govt will not take. But if bitcoin transaction will increase in all sectors yes BTC will kill income tax

They don't have to tax Bitcoin transactions specifically

All they need to do is to make legal an income earned through Bitcoin operations (that basically means legalizing Bitcoin as I said earlier). But if they legalize this income, in most jurisdictions that would effectively imply that you have to pay an income tax on capita gains obtained by buying and selling coins. And to make you pay this tax (i.e. catch you if you are going for tax evasion), they just need to control fiat in and outs that can be used to go into Bitcoin and exit from it

it's more easy than it seems, they just need to tax the exchange directly, then the exchange will apply a higher fee on your deposit or simply when you convert in fiat

this would be the best solution for them to avoid tax evasion, instead of chasing the bitcoin addresses, which is impossible

[Grdas130979]

I dont think thats the point of BTC, it not possible to avoid tax legally and btc is not for illegal transactions, so the answer is no it wont kill income tax

[jak3]

well bitcoin not only kills the income tax but kills a lot of stuffs and processes atfirst it was good but currenct mining fees is really creatinghuge problem but no matter how hard the time is we can still manage wipe this mud aside and clean our path. it will take sometime but soon we can have faster transactions with lower fees

[deisik]

This will not happen.  No government will say "oh look there is this thing called Bitcoin, we should forget about all the millions income taxes bring us and let it be a thing of the past". So there will always be an income tax. Generating income and not paying that is and will be in the future illegal. If you think Bitcoin might help you to not pay it, then this is your opinion, but it is still not allowed and pleas tell nobody anything else

You are not correct on this

A few governments are essentially doing something to that tune. You obviously miss one important thing, i.e. that it cuts both ways. More precise, if a government openly declares Bitcoin as a taxable asset, it inadvertently but unequivocally admits that Bitcoin is perfectly legit since you can't possibly tax something which is illegal. And the governments in question are not going to do this (at least, not until there is wide-scale adoption among masses), and thereby Bitcoin might remain factually tax-exempt in these countries

Maybe you have a hard time understanding this, but positivezero is talking about the abolishment of all income taxes, just because of Bitcoin. This will never happen and this also has nothing to do with the legal status or taxability of Bitcoin

And how does that make your point more valid?

Many governments across the world are heavily engaged in the lives of ordinary people, and they are often looked at as the guardians for the blind masses that need a shepherd ("all authority comes from God"). If they accept Bitcoin (through taxes or otherwise), that would mean endorsing its use by population. Who will be held responsible if folks start pouring their hard-earned money into Bitcoin and Bitcoin collapses soon thereafter? That seems to be the reason why governments are trying to distance from cryptocurrencoes, even if it means that some relatively small group of people is not going to pay any taxes on their earnings

It's not possible to put a tax on bitcoin transaction. If the government decides to put a tax on Bitcoin transaction, it will be a big headache for govt. They will get a lot of problems, and they will struggle a lot to control this Bitcoin trasnsaction. If they decided to collect the tax, then bitcoin banks must open. Then only the govt can able to track the record. I think this much risk govt will not take. But if bitcoin transaction will increase in all sectors yes BTC will kill income tax

They don't have to tax Bitcoin transactions specifically

All they need to do is to make legal an income earned through Bitcoin operations (that basically means legalizing Bitcoin as I said earlier). But if they legalize this income, in most jurisdictions that would effectively imply that you have to pay an income tax on capita gains obtained by buying and selling coins. And to make you pay this tax (i.e. catch you if you are going for tax evasion), they just need to control fiat in and outs that can be used to go into Bitcoin and exit from it

it's more easy than it seems, they just need to tax the exchange directly, then the exchange will apply a higher fee on your deposit or simply when you convert in fiat

this would be the best solution for them to avoid tax evasion, instead of chasing the bitcoin addresses, which is impossible

How are you going to tax services that exist only in cyberspace or can easily move to more tax-friendly (or tax-hostile) countries?

[Senor.Bla]

This will not happen.  No government will say "oh look there is this thing called Bitcoin, we should forget about all the millions income taxes bring us and let it be a thing of the past". So there will always be an income tax. Generating income and not paying that is and will be in the future illegal. If you think Bitcoin might help you to not pay it, then this is your opinion, but it is still not allowed and pleas tell nobody anything else

You are not correct on this

A few governments are essentially doing something to that tune. You obviously miss one important thing, i.e. that it cuts both ways. More precise, if a government openly declares Bitcoin as a taxable asset, it inadvertently but unequivocally admits that Bitcoin is perfectly legit since you can't possibly tax something which is illegal. And the governments in question are not going to do this (at least, not until there is wide-scale adoption among masses), and thereby Bitcoin might remain factually tax-exempt in these countries

Maybe you have a hard time understanding this, but positivezero is talking about the abolishment of all income taxes, just because of Bitcoin. This will never happen and this also has nothing to do with the legal status or taxability of Bitcoin

And how does that make your point more valid?

Many governments across the world are heavily engaged in the lives of ordinary people, and they are often looked at as the guardians for the blind masses that need a shepherd ("all authority comes from God"). If they accept Bitcoin (through taxes or otherwise), that would mean endorsing its use by population. Who will be held responsible if folks start pouring their hard-earned money into Bitcoin and Bitcoin collapses soon thereafter? That seems to be the reason why governments are trying to distance from cryptocurrencoes, even if it means that some relatively small group of people is not going to pay any taxes on their earnings

Now you are just embarrassing yourself with weak theories that are not very plausible, while still not getting the point. The argument is not just about the government giving Bitcoiners a pass on the taxes where Bitcoiners made some income from using Bitcoin. The argument is about the government canceling all income taxes for everybody. This includes all people, even the ones that do not use Bitcoin.

[zbeky]

You can hide your BTC income only if it never leaves bitcoin ecosystem. That means that there would have to be someone accepting bitcoin in every possible kind of service. Otherwise you must convert BTC to FIAT and this can be easily regulated. Even nowdays you have to verify your account on most exchanges.

Also as others said, it's not OK to evade taxes. The state doesn't keep the money, it pays public services from it - roads, infrastructure, healthcare, education...

[deisik]

This will not happen.  No government will say "oh look there is this thing called Bitcoin, we should forget about all the millions income taxes bring us and let it be a thing of the past". So there will always be an income tax. Generating income and not paying that is and will be in the future illegal. If you think Bitcoin might help you to not pay it, then this is your opinion, but it is still not allowed and pleas tell nobody anything else

You are not correct on this

A few governments are essentially doing something to that tune. You obviously miss one important thing, i.e. that it cuts both ways. More precise, if a government openly declares Bitcoin as a taxable asset, it inadvertently but unequivocally admits that Bitcoin is perfectly legit since you can't possibly tax something which is illegal. And the governments in question are not going to do this (at least, not until there is wide-scale adoption among masses), and thereby Bitcoin might remain factually tax-exempt in these countries

Maybe you have a hard time understanding this, but positivezero is talking about the abolishment of all income taxes, just because of Bitcoin. This will never happen and this also has nothing to do with the legal status or taxability of Bitcoin

And how does that make your point more valid?

Many governments across the world are heavily engaged in the lives of ordinary people, and they are often looked at as the guardians for the blind masses that need a shepherd ("all authority comes from God"). If they accept Bitcoin (through taxes or otherwise), that would mean endorsing its use by population. Who will be held responsible if folks start pouring their hard-earned money into Bitcoin and Bitcoin collapses soon thereafter? That seems to be the reason why governments are trying to distance from cryptocurrencoes, even if it means that some relatively small group of people is not going to pay any taxes on their earnings

Now you are just embarrassing yourself with weak theories that are not very plausible, while still not getting the point. The argument is not just about the government giving Bitcoiners a pass on the taxes where Bitcoiners made some income from using Bitcoin. The argument is about the government canceling all income taxes for everybody. This includes all people, even the ones that do not use Bitcoin.

If you don't know something, it doesn't mean that it doesn't exist. I can give you a link to an official letter of the tax agency of my country where they unambiguously declare that they have nothing to do with Bitcoin altogether since it is neither legally accepted nor regulated (though they don't say that it is illegal, either). What else do you need as a proof? What weak theories are you bumbling about if this is reality which I basically live in? Effectively, the government openly states that it is not to be held responsible if people lose their money with Bitcoin...

And why are you now desperately trying to talk this question away given that it was you who raised it in the first place, wtf?

[Clement Kaliyar]

well bitcoin not only kills the income tax but kills a lot of stuffs and processes atfirst it was good but currenct mining fees is really creatinghuge problem but no matter how hard the time is we can still manage wipe this mud aside and clean our path. it will take sometime but soon we can have faster transactions with lower fees

It is not true that bitcoin will kill income tax because the government can implement a tax when you cash in through the exchange and you only need to pay for the assets you have in liquid form and as long as your assets are in bitcoin you never need to pay any tax and that is how things are going to be and that is how the governments will be implementing regulations around that to get tax when ever you are cashing out.

[Senor.Bla]

This will not happen.  No government will say "oh look there is this thing called Bitcoin, we should forget about all the millions income taxes bring us and let it be a thing of the past". So there will always be an income tax. Generating income and not paying that is and will be in the future illegal. If you think Bitcoin might help you to not pay it, then this is your opinion, but it is still not allowed and pleas tell nobody anything else

You are not correct on this

A few governments are essentially doing something to that tune. You obviously miss one important thing, i.e. that it cuts both ways. More precise, if a government openly declares Bitcoin as a taxable asset, it inadvertently but unequivocally admits that Bitcoin is perfectly legit since you can't possibly tax something which is illegal. And the governments in question are not going to do this (at least, not until there is wide-scale adoption among masses), and thereby Bitcoin might remain factually tax-exempt in these countries

Maybe you have a hard time understanding this, but positivezero is talking about the abolishment of all income taxes, just because of Bitcoin. This will never happen and this also has nothing to do with the legal status or taxability of Bitcoin

And how does that make your point more valid?

Many governments across the world are heavily engaged in the lives of ordinary people, and they are often looked at as the guardians for the blind masses that need a shepherd ("all authority comes from God"). If they accept Bitcoin (through taxes or otherwise), that would mean endorsing its use by population. Who will be held responsible if folks start pouring their hard-earned money into Bitcoin and Bitcoin collapses soon thereafter? That seems to be the reason why governments are trying to distance from cryptocurrencoes, even if it means that some relatively small group of people is not going to pay any taxes on their earnings

Now you are just embarrassing yourself with weak theories that are not very plausible, while still not getting the point. The argument is not just about the government giving Bitcoiners a pass on the taxes where Bitcoiners made some income from using Bitcoin. The argument is about the government canceling all income taxes for everybody. This includes all people, even the ones that do not use Bitcoin.

If you don't know something, it doesn't mean that it doesn't exist. I can give you a link to an official letter of the tax agency of my country where they unambiguously declare that they have nothing to do with Bitcoin altogether since it is neither legally accepted nor regulated (though they don't say that it is illegal, either). What else do you need as a proof? What weak theories are you bumbling about if this is reality which I basically live in? Effectively, the government openly states that it is not to be held responsible if people lose their money with Bitcoin...

And why are you now desperately trying to talk this question away given that it was you who raised it in the first place, wtf?

I did not raise any questions, so i have nothing to talk away. Unless you can prove that nobody (whether it is a nurse, a clerk, a businessman or any employee of some kind) in your or any other country has to pay income taxes, i have nothing to add.

[wahb]

well bitcoin not only kills the income tax but kills a lot of stuffs and processes atfirst it was good but currenct mining fees is really creatinghuge problem but no matter how hard the time is we can still manage wipe this mud aside and clean our path. it will take sometime but soon we can have faster transactions with lower fees

yes we are also hoping so that very soon every thing will be ok, because people still want to use bitcoin, because bitcoin is the need of the day, specially for online purpose. in modern time the use of online currency is increasing from time to time therefor they want bitcoin to use it more comfortably.

[Colt22]

You can hide your BTC income only if it never leaves bitcoin ecosystem. That means that there would have to be someone accepting bitcoin in every possible kind of service. Otherwise you must convert BTC to FIAT and this can be easily regulated. Even nowdays you have to verify your account on most exchanges.

Also as others said, it's not OK to evade taxes. The state doesn't keep the money, it pays public services from it - roads, infrastructure, healthcare, education...

If the governments will legalize bitcoin and they started to take tax on its usage then it will be much hard for anyone to hide their bitcoins as on one place the exchanges collect identity and on the other hand service providers will know that to whom they are paying as the government will ask them for report if they will operate their licensed company.

[ophyrim]

If your investment stay at bitcoin it can be anonymouse at many website below a limit. For example this limit is 2000 dollars daily withdrawal at Poloniex. If you want to withdraw more than 2000 dollars you have to confirm your account. When your investment is high is not easy to stay anonymouse alltimes.

[mrkevio]

If your investment stay at bitcoin it can be anonymouse at many website below a limit. For example this limit is 2000 dollars daily withdrawal at Poloniex. If you want to withdraw more than 2000 dollars you have to confirm your account. When your investment is high is not easy to stay anonymouse alltimes.

That is just Poloniex. The thing is that the governments will want to tax Bitcoin too, and they can do nothing about it because they have no idea what addresses you own, so they won't know how much money you earned, so therefore they cannot tax you. And this is not an issue now, but Bitcoin will grow and that will become a problem for them.