Bitcoin Will Kill The Income Tax

[Vaskiy]

It's just not possible to avoid certain taxes. For example, if you want to buy a car, it's going to be impossible to hide from the government, let alone hiding real state. You can't pretend to avoid taxes on a house or on terrain because the government is not stupid and will find out. So the only way you could avoid that is if there was no government but I don't see that happening... so there. The only thing you could avoid is if you buy small things, but serious things is impossible to avoid. I saw don't risk it and pay the taxes unless you are making so little money that it's not even worth it.

Certain taxation can never be avoided, but however regulations were made users will create loopholes to avoid the taxes. The reason is that government can't consider the income of a particular person if he has two or more sources of income.

[JC btc]

There are lot of things that is taxable. Bitcoins is just a little amount for now so I don't think that bitcoin will kill tax. Maybe in the next years the government will get alarm and can proposed to tax the btc and that is not impossible.

[greenpips]

in my country because bitcoin is still in the category of currencies that have not legalized tax applied included in trading. but later perhaps after legal bitcoin will be taxed

[Gotottack]

If you sold your bitcoins in the real world then you're liable for income tax. Even if you sold it online, then you profited from that transaction you will be liable for income tax. Because you earned something. You have to pay for taxes. Taxes is where your government gets the funds to run its services. Think about it, if there was not funds for the government no one will protect you, your country, or your properties. It will be anarchy.

but if we sold our bitcoin with our friends and he send us the fiat into our bank account then we don't have to pay the taxes unless for monthly taxes from maintain our account in the bank. and this is why government is not give any permissions to bitcoin but in someday, the government will realize and will allow bitcoin as payment processor like fiat and other online processor.

That is not how tax works. What matters in taxation is when you gained income from your transactions that income is taxable. It does not matter if you sold to your friends, family, your cat or your neighbor's dog. What matters is you gained something from it and that would be what you declare as income. If you're country monitors every person properly then every income everyone gets must be taxed. If for example you gained $1,000,000 from your investment and don't declare that income then you will be investigated by your IRS (tax agency) because you are using money and you can't explain where it came from.

[BitHodler]

There are lot of things that is taxable. Bitcoins is just a little amount for now so I don't think that bitcoin will kill tax. Maybe in the next years the government will get alarm and can proposed to tax the btc and that is not impossible.

Bitcoin in its current form is indeed a tiny dot in the current financial system, but I am sure that when more people realize that Bitcoin is more than just an investment tool, that they will come on board.

Right now people mostly choose Gold as some sort of a hedge and as store of value, but it would be interesting to know if these same people would give Bitcoin a chance if they knew what Bitcoin is really capable of.

Great advantage is that when you buy Bitcoin, that you have everything fully in control where people right now buy physical Gold and use bank vaults to store them.

Doesn't really make sense as they once again depend on banks. This way they keep sitting in the old fashion system that they think have escaped where in reality it isn't the case.

[countryfree]

BTC won't change much for most people, because they have a fixed job with a fixed salary, which is lawfully declared to the tax authorities. So you may be paid in bananas or rubles, the government will still be aware of your earnings, and you will have to pay tax on that income.

If you don't want to pay income tax, actually, it's quite easy. I'm not paying any. I'm being paid by bank transfer, with transfers coming from a country where I've never been, going to my bank account in a country where I'm not living. You do that, you don't pay income tax.

[BillyBobZorton]

BTC won't change much for most people, because they have a fixed job with a fixed salary, which is lawfully declared to the tax authorities. So you may be paid in bananas or rubles, the government will still be aware of your earnings, and you will have to pay tax on that income.

If you don't want to pay income tax, actually, it's quite easy. I'm not paying any. I'm being paid by bank transfer, with transfers coming from a country where I've never been, going to my bank account in a country where I'm not living. You do that, you don't pay income tax.

But there is always a risk of being caught by doing that. How are you supposed to have a bank account opened in a country where you don't live? as far as I know you can't unless you live X amount of time on said country. Like 1/3 of the year you must live there to keep your account. If it was that easy and riskless no one would be paying, but the reality is, people get caught including famous rich people like Cristiano Ronaldo which by the way may be facing jail since he didn't pay like hundreds of millions. There can always be leaks and so on.

[olubams]

I will still maintain my position that Bitcoin cannot kill Income Tax so far we still have government and government will still need money to run its affairs which is largely generated through Income Tax what I see happening is government finding a way to either tax that income from Bitcoin and if that is not possible, ban its use all together. What we are still enjoying now is that the population still involved in Bitcoin and the loss of revenue involved, is not enough to call the attention of governments...

[The_Dark_Knight]

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

Barrack Obama 

In some countries there are laws already in place that basically dictate that you must give up your keys if the government ask for them, so to be honest if they can crack encryption they are going to make it illegal, or will force you to reveal everything that they want.

[Xester]

I will still maintain my position that Bitcoin cannot kill Income Tax so far we still have government and government will still need money to run its affairs which is largely generated through Income Tax what I see happening is government finding a way to either tax that income from Bitcoin and if that is not possible, ban its use all together. What we are still enjoying now is that the population still involved in Bitcoin and the loss of revenue involved, is not enough to call the attention of governments...

You have a point sir. Bitcoin cannot kill income tax and its simple, without income tax then the government will die since the government operates and fueled by income taxes. Without tax there will be no government and its services. Thus the if government sees that bitcoin has huge impact on the society, economy and governance it will look upon bitcoin and regulate it or possibly ban it.

[deadsilent]

I think tax can never be evaded because tax is the main source of governent to maintain and give salaries to government employers who helps to governs an entire country. Maybe bitcoin cannot imposed with tax but government will find a way. They will surely make a law to regulate the use of bitcoin. If they cannot regulate it, they will ban it.

[Positid]

I think tax can never be evaded because tax is the main source of governent to maintain and give salaries to government employers who helps to governs an entire country. Maybe bitcoin cannot imposed with tax but government will find a way. They will surely make a law to regulate the use of bitcoin. If they cannot regulate it, they will ban it.

Bitcoin has been in existence for many years and the government cannot even find a way on how to tax the user, some had surrendered and resulted to banning bitcoin. I think it's impossible to tax because in the first place we do not give our real information here on our identity, that alone is a big problem on who to tax.

[20kevin20]

So? Killing the taxes means no more money stolen by governments. Using Bitcoin is better than using any other currency especially because of these taxes that you don't need to pay anymore! You're free, it's like you're your own bank and government. The only tax we can get is like a monthly tax that we need to pay for using Bitcoin, just like we need to pay for the so-called pollution.

[jak3]

sure it will. We have our own wallets our own currency and our own transaction network income tax collectors can only take very small amount to tax and we and enjoy growing our money here. Bitcoin helped a lot to get the market access

[RealEstCoin]

There are lot of things that is taxable. Bitcoins is just a little amount for now so I don't think that bitcoin will kill tax. Maybe in the next years the government will get alarm and can proposed to tax the btc and that is not impossible.

Bitcoin in its current form is indeed a tiny dot in the current financial system, but I am sure that when more people realize that Bitcoin is more than just an investment tool, that they will come on board.

Right now people mostly choose Gold as some sort of a hedge and as store of value, but it would be interesting to know if these same people would give Bitcoin a chance if they knew what Bitcoin is really capable of.

Great advantage is that when you buy Bitcoin, that you have everything fully in control where people right now buy physical Gold and use bank vaults to store them.

Doesn't really make sense as they once again depend on banks. This way they keep sitting in the old fashion system that they think have escaped where in reality it isn't the case.

Good point. The market cap of Bitcoin is relatively small.

Also, transacting real estate with Bitcoin has similar advantages as a 1031 exchange.

[MMA]

I will still maintain my position that Bitcoin cannot kill Income Tax so far we still have government and government will still need money to run its affairs which is largely generated through Income Tax what I see happening is government finding a way to either tax that income from Bitcoin and if that is not possible, ban its use all together. What we are still enjoying now is that the population still involved in Bitcoin and the loss of revenue involved, is not enough to call the attention of governments...

You have a point sir. Bitcoin cannot kill income tax and its simple, without income tax then the government will die since the government operates and fueled by income taxes. Without tax there will be no government and its services. Thus the if government sees that bitcoin has huge impact on the society, economy and governance it will look upon bitcoin and regulate it or possibly ban it.

it is a fact that presently as there is no tax on bitcoin and the users of bitcoin are increasing continuously, therefore it is possible that bitcoin will effect the income tax. so government must take some positive action about bitcoin to regulate it because governments have to take care about the people interest also.

[Zadicar]

I will still maintain my position that Bitcoin cannot kill Income Tax so far we still have government and government will still need money to run its affairs which is largely generated through Income Tax what I see happening is government finding a way to either tax that income from Bitcoin and if that is not possible, ban its use all together. What we are still enjoying now is that the population still involved in Bitcoin and the loss of revenue involved, is not enough to call the attention of governments...

You have a point sir. Bitcoin cannot kill income tax and its simple, without income tax then the government will die since the government operates and fueled by income taxes. Without tax there will be no government and its services. Thus the if government sees that bitcoin has huge impact on the society, economy and governance it will look upon bitcoin and regulate it or possibly ban it.

it is a fact that presently as there is no tax on bitcoin and the users of bitcoin are increasing continuously, therefore it is possible that bitcoin will effect the income tax. so government must take some positive action about bitcoin to regulate it because governments have to take care about the people interest also.

If bitcoins adoption and awareness would really increase and spread throughout the world then income tax law from the government will surely affected because people would really tend to put up money on bitcoin to avoid taxation which is somehow a negative side of bitcoin when it reaches to its full adoption it will surely affect the economy of said country.

[gribble]

Yup, Bitcoin is very transparent and is very easy to detect, for example when the Bitcoins went and who did what,"  Suddenly you see these technological solutions cheaper and also allow more private.( If segwit be activated).
Government have to do is just try to talk to a few of the companies and users, and the effort to create a viable way to develop tax these people.

[Supercrypt]

I think tax can never be evaded because tax is the main source of governent to maintain and give salaries to government employers who helps to governs an entire country. Maybe bitcoin cannot imposed with tax but government will find a way. They will surely make a law to regulate the use of bitcoin. If they cannot regulate it, they will ban it.

Evasion of taxes and imposing taxes on bitcoin could be possible only by volunteer acceptance of a bitcoin user.

But holding bitcoin in our wallet is nothing but we are owning some property but in digital format. For owning property we never need to pay taxes, but only when we are going to use them/ sell them. I strongly believe this will be applicable for the case of bitcoin as bitcoin is also viewed as a digital asset.

[SvenBomvolen]

   OP made a copy of the headline, he made a copy of the text. He didnt give any explanation, and link he left is just for members only. I will not register on this site just to read this story, he should be more hardworking on this matter, like this its just copy/paste.
   Bitcoin and taxes will be burning issue, not will be, its burning issue even now judging from some topics and comments on this forum.