Bitcoin Will Kill The Income Tax

[Osarman]

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.

In this matter, I also like to be a little over positive. I also want to have a tax free future and if not that then at least very low taxation. But our governments and all the rulers of the world will get united against this idea and there is no way they will let taxation die out. I just hope crypto currencies will either low the taxation or being very ideal, will eradicate it.

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[balakang00]

Personally, I think that it is a good idea for a bitcoin and other cryptocurrency to kill income tax. The death of income tax will open up a wider opportunity for the users of bitcoin to have bigger income. But honestly, i think this isn't possible because income tax is primarily the source of budget of the government. It is our own contribution to the country.

[JohnBitCo]

You know it doesn't matter at all, how many steps you put between the source of money and your point of spending. You can launder money, moving around, and keep it completely anonymous. But in the end, that exit strategy is going to be what's going to get you every time and that's where the IRS is going to be. At some point you're going to have to hand money over to a merchant for a product and there is no way that you're going to be able to make that anonymous.

[deisik]

You know it doesn't matter at all, how many steps you put between the source of money and your point of spending. You can launder money, moving around, and keep it completely anonymous. But in the end, that exit strategy is going to be what's going to get you every time and that's where the IRS is going to be. At some point you're going to have to hand money over to a merchant for a product and there is no way that you're going to be able to make that anonymous

There are quite a few workarounds really

Which had been there long before Bitcoin was conceived, and in fact, even long before Internet itself was born. Indeed, if you have just a few thousand dollars, it makes no particular sense to follow these routes (to avoid being cornered by the IRS or similar tax agencies representing countries with insane tax burden like Sweden or France). But if you count your wealth in millions or rather dozens of millions of dollar worth of bitcoins (or just pure dollars), you may hire an experienced tax advisor, and you will never have to deal with the IRS (if you are from the US). This is what many celebrities, top-class professional sportsmen (Bjorn Borg) and movie stars (Gérard Depardieu) are doing on a daily (well, yearly) basis. Some get caught (like Wesley Snipes) but most come off crystal clear saving literally millions on taxes

[flower1024]

Personally, I think that it is a good idea for a bitcoin and other cryptocurrency to kill income tax. The death of income tax will open up a wider opportunity for the users of bitcoin to have bigger income. But honestly, i think this isn't possible because income tax is primarily the source of budget of the government. It is our own contribution to the country.

Except for few Gulf countries, all country governament will run based on this income tax amount. If they not collect income tax then it is not at all possible to run the country. It will effect on the country economy. That is why the govt is not making this Bitcoin transaction legal in their countries. If they get any income, all countries will accept this Bitcoin.

[dreamer81]

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

It wont be that big of a problem. The governments will find ways to "alter" this situation. They will make stupid laws after laws that will make you pay taxes.
There is no way around it in the long term. On the short term you might be able to save a few houndred thousands.

[Mr.Anonymous]

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

It wont be that big of a problem. The governments will find ways to "alter" this situation. They will make stupid laws after laws that will make you pay taxes.
There is no way around it in the long term. On the short term you might be able to save a few houndred thousands.

Haha, have many way for government want tax fees user Bitcoin.
Example: They will take fees anyone have mining farm or trading cryptocurrency on market, although they cannot track our transaction, but they can use this way for control trader and miner.

[datodota002]

yes but will not be long in let by the tax because more and more people getting rich because bitcoin and bitcoin will be the target of the tax officer

[sumangs]

It will be remove if we use bitcoins as payment and don't convert the bitcoins to fiat to avoid tax. The only problem is if the government implement putting tax on bitcoin transactions, so there will be transaction fee and tax that could make us upset to the government again. The government really finds way to keep collecting money to us because they are scared to lose their fiat to a digital decentralized coin.

[deisik]

Personally, I think that it is a good idea for a bitcoin and other cryptocurrency to kill income tax. The death of income tax will open up a wider opportunity for the users of bitcoin to have bigger income. But honestly, i think this isn't possible because income tax is primarily the source of budget of the government. It is our own contribution to the country.

Except for few Gulf countries, all country governament will run based on this income tax amount. If they not collect income tax then it is not at all possible to run the country. It will effect on the country economy. That is why the govt is not making this Bitcoin transaction legal in their countries. If they get any income, all countries will accept this Bitcoin

We can't say that with certainty

There are quite a few taxes in any given country apart from the income tax. And many governments are earning enough money via state-controlled companies and businesses. And we shouldn't forget about the omnipresent inflation tax that every government out there takes advantage of since all fiat currencies are depreciating over time. If you ask me, the government should be as effective as to run entirely on this tax alone since every unit of money gets taxed without exception, and that totals to a huge amount of purchasing power being taken by the government from the ordinary people

[Exidous]

If gov use bitcoin for their financial. First every shop, company must register their btc address for income. Maybe they will fake customer to check to make sure they pay tax

[ScriptYoYo]

yes but will not be long in let by the tax because more and more people getting rich because bitcoin and bitcoin will be the target of the tax officer

I think that bitcoin will not have a negative impact on the taxation system. It will never become the main means of payment. Therefore, there is no threat that bitcoin will have a negative and significant impact on the economy

[Kupid002]

Personally, I think that it is a good idea for a bitcoin and other cryptocurrency to kill income tax. The death of income tax will open up a wider opportunity for the users of bitcoin to have bigger income. But honestly, i think this isn't possible because income tax is primarily the source of budget of the government. It is our own contribution to the country.

Yes and I think they will never let it because tax is always part of our lives small amount you can buy in the grocery have tax how about for some that earn a lot in crypto currency so they will make a move about it government wont let it to dont have tax anymore.

[ivrynx]

It may take a long time, but hopefully bitcoin will kill income tax, we are already paying a lot of taxes, the government is giving a lot of tax exemptions for businesses but not for the earner, i just this would happen, or just even lessen the tax percentage, we all need a break from taxes, and now that bitcoin is here,  bitcoin is giving us hope, for all of us to ahieve what we wanted. Right now, it is hard for you to do what you want, since we are always thinking of security and the wage we are earning, it will also destroy corruption in the government since those who are in politics, who are corrupt and greedy, would certainly step down since, they will have no other soufce of income, aside from their salary, and we all know, that income tax gives more revenue to the government, than the tax impose on businesses.

[Howell]

Personally, I think that it is a good idea for a bitcoin and other cryptocurrency to kill income tax. The death of income tax will open up a wider opportunity for the users of bitcoin to have bigger income. But honestly, i think this isn't possible because income tax is primarily the source of budget of the government. It is our own contribution to the country.

Except for few Gulf countries, all country governament will run based on this income tax amount. If they not collect income tax then it is not at all possible to run the country. It will effect on the country economy. That is why the govt is not making this Bitcoin transaction legal in their countries. If they get any income, all countries will accept this Bitcoin.

Yes government's inability to monitor and regulate cryptocurrencies is a main reason to not legalize their use in their countries but that is simply shadow chasing as ultimately everyone gets to pay one form of tax or the other and bitcoin cannot stop that.

[Linuld]

Personally, I think that it is a good idea for a bitcoin and other cryptocurrency to kill income tax. The death of income tax will open up a wider opportunity for the users of bitcoin to have bigger income. But honestly, i think this isn't possible because income tax is primarily the source of budget of the government. It is our own contribution to the country.

Except for few Gulf countries, all country governament will run based on this income tax amount. If they not collect income tax then it is not at all possible to run the country. It will effect on the country economy. That is why the govt is not making this Bitcoin transaction legal in their countries. If they get any income, all countries will accept this Bitcoin.

Yes government's inability to monitor and regulate cryptocurrencies is a main reason to not legalize their use in their countries but that is simply shadow chasing as ultimately everyone gets to pay one form of tax or the other and bitcoin cannot stop that.

The end users like Bitcoin because they no need to pay any extra money for their transaction. this will save more money to end users. I will give one example to buy any electronic goods we need to pay 30% tax to govt. Is this fair? $100 product if we buy means we have to pay $30 tax to govt total $130. How can a common person afford this right. So people like Bitcoin transaction and they are waiting to make this Bitcoin legal in every country.

[cjinny]

so true. The world of cryptocurency will turn off the income tax if we actually use bitcoin directly without first exchange bitcoin with other currencies.

[Getmon]

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.

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I agree that this growing use of crypto will actually diminish the tax revenue to a significant level. Transactions using Bitcoin for example does not have to go through any central agency anymore, thereby removing the possibility of being tracked for tax purposes. But if you say that taxation will have to be repositioned as voluntary, it will effectively kill the government. It is not good. Only 1 of 100 might do the voluntary payment. 

[RayvenPierre]

This is very impossible and won't happen. Tax is the main source of funds of a country and income tax has a huge percentage of it. Governments will only get bitcoin legallized and gain tax from it if it becomes the main means of payment.

[Psalms23]

This could be true in the future. If governments doesn't act quickly on this, big business might adopt bitcoin transactions and make their huge money transactions invisible. Even OFW's could send their remittances through bitcoin and then taxes can be skipped. We all know that these businessmen will find ways just to evade tax, even illegally, how much more if they know that evading tax through bitcoin is legal. There should be some concept on how to prevent this in the future.