Bitcoin Will Kill The Income Tax

[Maheshkumar_Hrangkhawl]

I really doubt whether Bitcoin will kill the income tax. I am a Bitcoin user myself, and if I get good profits from Bitcoin, then I would be more than happy to pay the 33% income tax (the top slab in my country). That said, I would be even happier, if I could pay the long term capital gains tax instead of the income tax.

[1714256279]

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[1714256279]

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[Oceat]

I really doubt whether Bitcoin will kill the income tax. I am a Bitcoin user myself, and if I get good profits from Bitcoin, then I would be more than happy to pay the 33% income tax (the top slab in my country). That said, I would be even happier, if I could pay the long term capital gains tax instead of the income tax.

This is a long time ago topic and the link doesn't even working or maybe they have deleted the article. Anyway, tax is being implemented in order to circulate the money in a certain country, but this doesn't apply to any digital or cryptocurrencies.

[Russlenat]

That's why government should regulate bitcoin in all exchange and trading site in order to have tax! this is good because we can help boost our economy.

[Fatunad]

That's why government should regulate bitcoin in all exchange and trading site in order to have tax! this is good because we can help boost our economy.

No they wont,if a certain country would know about bitcoin possibilities on hiding their money then we cant really be sure if people would really be sensible to pay up their taxes exactly. We do know people do have different minds when it comes to money.Lets say they can impose taxes on bitcoin services on their control but it wouldnt surely boost up economy on such thing. This is why government wont really bother to accept this thing.

[deisik]

Hold your horses there, it may lessen the income tax but the government can alwayd find a way to tax your Bitcoin earnings. In my opinion, we are still lucky that the governmet is not yet fully knowledgeable about the Bitcoin and it's ability to provide a quite a big amount of money without being taxed. But sooner or later they will find out. And I am 100% sure that they will do something about it in order to get a portion of the Bitcoin earning from their people. And this is when the income tax will be revisited and adjustded up to the scope if income from Bitcoin.

This leaves a lot of room to debate

First, if you don't convert your bitcoins to fiat (dollars, euro, whatever), how is the government going to find out that you have bitcoins? Okay, they may finally make it somehow (i.e. learn about how much everyone has), then you just switch to using, say, Litecoin, and then the government is instantly back to square one. Second, if they are going to levy a capital gains tax, why should Bitcoin specifically be taxed differently (say, like luxury items in some countries)? And last (but not least), people involved with cryptocurrencies don't really care so much about fiat as many erroneously assume. And most of these holders will be happy to remain where they are, i.e. not going for fiat beyond what they might need for mere subsistence (then see the first point)

[Lizzie_Girl]

In my country this would be a good thing if everyone ised Bitcoin. Because our government wastes money and stupid things all the time and corruption.

Hold your horses there, it may lessen the income tax but the government can alwayd find a way to tax your Bitcoin earnings. In my opinion, we are still lucky that the governmet is not yet fully knowledgeable about the Bitcoin and it's ability to provide a quite a big amount of money without being taxed. But sooner or later they will find out. And I am 100% sure that they will do something about it in order to get a portion of the Bitcoin earning from their people. And this is when the income tax will be revisited and adjustded up to the scope if income from Bitcoin.

This leaves a lot of room to debate

First, if you don't convert your bitcoins to fiat (dollars, euro, whatever), how is the government going to find out that you have bitcoins? Okay, they may finally make it somehow (i.e. learn about how much everyone has), then you just switch to using, say, Litecoin, and then the government is instantly back to square one. Second, if they are going to levy a capital gains tax, why should Bitcoin specifically be taxed differently (say, like luxury items in some countries)? And last (but not least), people involved with cryptocurrencies don't really care so much about fiat as many erroneously assume. And most of these holders will be happy to remain where they are, i.e. not going for fiat beyond what they might need for mere subsistence (then see the first point)

But what if the tax man asks about your new sports car you just bought with BTC ? Or can't they do anything ?

[kokojie]

No, it's not possible. Did fiat cash kill the income tax? No.

For most people, they will still be working for big corps, and they won't be dodging tax. There are tax dodgers right now taking cash payments as salary, but they are not the mainstream, it has no effect on killing the income tax.

[andremd3]

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

I agree that taxes might dry up - I don't however see this as one of the biggest problems of our lifetime (unless you work for the tax office). I think this new form of private money will require Governments to draw up a new social contract, as the current one is failing people all over the world.
As well as ICO's, we could have IEO's (initial education offerings) or IHO (Initial health offerings).... The old system is dying. May it RIP.

Lmao... great we can have a system even more favorable to the rich...cant wait!

[deisik]

Hold your horses there, it may lessen the income tax but the government can alwayd find a way to tax your Bitcoin earnings. In my opinion, we are still lucky that the governmet is not yet fully knowledgeable about the Bitcoin and it's ability to provide a quite a big amount of money without being taxed. But sooner or later they will find out. And I am 100% sure that they will do something about it in order to get a portion of the Bitcoin earning from their people. And this is when the income tax will be revisited and adjustded up to the scope if income from Bitcoin.

This leaves a lot of room to debate

First, if you don't convert your bitcoins to fiat (dollars, euro, whatever), how is the government going to find out that you have bitcoins? Okay, they may finally make it somehow (i.e. learn about how much everyone has), then you just switch to using, say, Litecoin, and then the government is instantly back to square one. Second, if they are going to levy a capital gains tax, why should Bitcoin specifically be taxed differently (say, like luxury items in some countries)? And last (but not least), people involved with cryptocurrencies don't really care so much about fiat as many erroneously assume. And most of these holders will be happy to remain where they are, i.e. not going for fiat beyond what they might need for mere subsistence (then see the first point)

But what if the tax man asks about your new sports car you just bought with BTC ? Or can't they do anything ?

They could ask that anyway, Bitcoin or not

And you are not going to buy a new sports car for bitcoins either, at least, not in the nearest future (I mean en masse). Regardless, whether you are going to buy things with bitcoins (something of high value like houses, yachts, islands, etc), or you are just converting a massive amount of coins to fiat, you will quickly get on the radar of the tax service of your country (or anti-money laundering agency), so it is basically six of one and half a dozen of the other

[Lizzie_Girl]

Hold your horses there, it may lessen the income tax but the government can alwayd find a way to tax your Bitcoin earnings. In my opinion, we are still lucky that the governmet is not yet fully knowledgeable about the Bitcoin and it's ability to provide a quite a big amount of money without being taxed. But sooner or later they will find out. And I am 100% sure that they will do something about it in order to get a portion of the Bitcoin earning from their people. And this is when the income tax will be revisited and adjustded up to the scope if income from Bitcoin.

This leaves a lot of room to debate

First, if you don't convert your bitcoins to fiat (dollars, euro, whatever), how is the government going to find out that you have bitcoins? Okay, they may finally make it somehow (i.e. learn about how much everyone has), then you just switch to using, say, Litecoin, and then the government is instantly back to square one. Second, if they are going to levy a capital gains tax, why should Bitcoin specifically be taxed differently (say, like luxury items in some countries)? And last (but not least), people involved with cryptocurrencies don't really care so much about fiat as many erroneously assume. And most of these holders will be happy to remain where they are, i.e. not going for fiat beyond what they might need for mere subsistence (then see the first point)

But what if the tax man asks about your new sports car you just bought with BTC ? Or can't they do anything ?

They could ask that anyway, Bitcoin or not

And you are not going to buy a new sports car for bitcoins either, at least, not in the nearest future (I mean en masse). Regardless, whether you are going to buy things with bitcoins (something of high value like houses, yachts, islands, etc), or you are just converting a massive amount of coins to fiat, you will quickly get on the radar of the tax service of your country (or anti-money laundering agency), so it is basically six of one and half a dozen of the other

Ok so it is best to use my Bitcoin on small items the tax man really can't trace or cares about. Things like sound systems gaming consoles and pc hardware bit larger things I would need to claim capital gain on. Makes sense to me. Thanks KS for the answer you very helpful in the forum I have noticed so thank you.

[yndye]

It could kill the income tax but not in the near future. There are so many people working online nowadays not paying taxes but still the government is surviving because income tax is not only their source, there are so many taxes. Maybe when many people will stop finding offline jobs and companies would be problematic because of the shortage of employees which I think is not a problem for now since there are still so many who are unemployed then that's the time government will do something to have a share of income in bitcoin. Maybe those that are having huge chunks of income could care and pay taxes but for small time earners, tax is a no-no in bitcoin earnings.

[doomloop]

The bitcoin income tax may never be heard again. But some wallets use fees to pay their taxes to the government. Often we get a deposit or transaction fee deduction for bitcoin. May be used bitcoin wallet to pay taxes. I think it's true bitcoin will eliminate income tax but can not eliminate on for bitcoin wallet ..

as we can see the acceptance of the bitcoin is increasing very fast the rate of the people who use bitcoin is increasing so it is no longer far that government will accept bitcoin but killing income tax is still so far because government will find some way to take tax from the bitcoin users through their rules but the income tax is not so much larger than the profit so it will be affordable 

[wantjokull]

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

Because of this thing in my country it is already taxable currency. Once you withdraw you crypto currency into fiat form then it gets taxed. This is because we have to justify for each transaction that goes through the bank, when something is coming into your bank then it has to be explained lawfully at the financial year end. I'm hoping that crypto currency taxation should be implemented as part of national investment and not strict amendment to avoid disruption of taxation as you said.

[Coffee135]

The bitcoin income tax may never be heard again. But some wallets use fees to pay their taxes to the government. Often we get a deposit or transaction fee deduction for bitcoin. May be used bitcoin wallet to pay taxes. I think it's true bitcoin will eliminate income tax but can not eliminate on for bitcoin wallet ..

as we can see the acceptance of the bitcoin is increasing very fast the rate of the people who use bitcoin is increasing so it is no longer far that government will accept bitcoin but killing income tax is still so far because government will find some way to take tax from the bitcoin users through their rules but the income tax is not so much larger than the profit so it will be affordable 

The tax cannot be more than income. You probably never paid taxes and do not understand how they are awarded. Income tax can actually reduce your income but not exceed it. To avoid this we need to move to use bitcoins without an exchange for Fiat.

[dalek]

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

I agree that taxes might dry up - I don't however see this as one of the biggest problems of our lifetime (unless you work for the tax office). I think this new form of private money will require Governments to draw up a new social contract, as the current one is failing people all over the world.
As well as ICO's, we could have IEO's (initial education offerings) or IHO (Initial health offerings).... The old system is dying. May it RIP.

Or the government will tax miner Bitcoin and Altcoin is possible .
Then make the system of cryptocurrency changes the fees for helps miner have money pay tax.

[Dudeperfect]

I just came across this article and I think in recent years we will have to pay tax on the conversion of crypto currencies to fiat currencies and even if there is any purchase made using crypto currencies.

* India Close to Finishing Work on Cryptocurrency Rule Proposals.

The basic idea is to put the tax on any realised gain made in crypto currencies. The things are yet in grey area and let's expect clarity soon.

[JL421]

It will in future people might end up getting their salaries in bitcoin and that will change as price changes which is a really good factor if one can co-op with their expenses 1 month earlier they will clearly have a good profit just by holding it. Bitcoin mixing site can easily help us manipulate taxes

[ohlawdy]

No way a government will let it come so far.
They will find a way be sure of that.  Crypto will make It a lot harder at least.

[Westfiled]

No way a government will let it come so far.
They will find a way be sure of that.  Crypto will make It a lot harder at least.

government have already make a regulation about it, people who still talking about how cryptocurrencies will kill Tax have no clue about their own country's law.

[Cazkys]

Well, ain’t that nice a dream. A bit idealistic but I really do hope for a tax free future. But as a part of the human race, I can testify that we are terrible and petty bastards. Do you think all people will be on this tax-free ride without giving a fight (ahem, politicians)? Do you think that voluntarily paying tax so that only legit and useful projects will be done and built will work? I guess it will as long as all people will agree to be mature and prioritize things without getting petty and ironic about. But I really do hope for this.