Bitcoin Will Kill The Income Tax

[Zorbak]

It will reduce tax but not kill it.

For example, they can force a company to always pay salary using the same account and at the end of year they send this information same as they do know, tax knows how much you earned as company send this info, so nothing would change in this case.

What will change it's for many business it will be easier for them to not declare some incomes ( as they actually do with cash but more easy).

[1714263692]

1714263692

[1714263692]

1714263692

[1714263692]

1714263692

[1714263692]

1714263692

[cryptojac17]

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

Bitcoin had created to decentralized and different from any currency of a country.
Yes, sending bitcoin is not restricted by state border and people can avoid taxes by doing it when every remittance require high fees but not for bitcoin. People could invest in bitcoin and avoid taxes, that's why IRS forced coinbase to hand over the identities of customers who made transactions through the company over three years in US. They want their taxes for sure, soon another state will follow this step, hopefully not in mine.

i think it will be more easy for the states to recognize bitcoin as legal currency, and then put tax on it, hopeful that people will happily pay their tax on bitcoin, because mostly people are loyal to their country and they want their states prosperous therefore if government will recognize bitcoin as legal currency then surely people will happily pay their tax on the income that come from bitcoin.

As quoted if bitcoin is legalised people will pay tax giving value to it. At the same if its legalised it will come under a central authority which is not good for the growth of bitcoin. For this reason people could pay taxes even before legalised based upon the transactions made or based upon the profiting.

Truly. On the off chance that we just utilized bitcoin as our exchange and not transform it to fiat then we don't have to pay impose. Still there are numerous potential outcomes for government to track and put charge for a bitcoin client. On the off chance that they discover bitcoin is being changed over into fiat and they will apply assess there. This will be a similar case for bitcoin platinum cards as well.

Since Bitcoin is a peer to peer transaction there is a possibilities that banking system will be dried up and the government will suffer a loss of revenue due to taxation. But for now there are lot of people who used fiat as legal tender in buying basic needs in our time I think it will not happen, but maybe this is the time that we might think any means that the government can also earn the right taxation revenue, because government also is a very vital in protecting citizen rights.

[rockyfeller]

Yes Bitcoin will kill the income tax. Governments/banks needs money from the people thats why they impose more taxes. its not a healthy income. Governments are corrupt. Bitcoin is the answer of all the problem that we are facing in our country (TAX). Soon governments will merge to blockchains to help their economy to grow more

[mazzaneo]

Money and tax collectors have always been playing cat and mouse. the tax collectors will get more clever - if they havent already and figure out ways of extracting tax when they need to. They are not going to give up just like that, dont worry.

[Smokey Bob]

In terms of micro economics taxation is an evil, as pushes the equilibrium away from supply = demand. However, it is a necessary evil. A complete removal of taxation would not be to the benefit of anyone else than the extremely wealthy, if them. There are so many projects that are not profitable enought for a private company to go through with that needs to be done. Let's just take hospitals as an example. If they are completely privatized profitability would be the main objective. This would mean that a lot of people would die simply because they aren't lucrative enough customers. In the short term a removal of taxes might offer some more spending cash, but in the long term it dissolves what keeps a country together. So I surely do hope they find new, clever ways to enforce taxation.

[Shamie1002]

Bitcoins are accepted in our country, but with taxes or fees already for transaction purposes. Even if the government is not yet acknowledging bitcoin we are already paying fees. How much more if they would. Will bitcoin still be profitable.

[stanisl]

There is constantly a way to evade tax and Bitcoin is one of them, tax is not an concern in country, simply because people get small again from government so there is no need to have to do so, except if you want to go for political publish.

[zollyharvan]

Maybe this is a good article, but it does not really build an original statement that's that simple.
Bitcoin tax killing income which is one of two things, a minimalist form of government or a government that is more related to the government that oppresses private rights and oversees all life forms of its citizens. usually a country that adheres to it.

[zollyharvan]

This will reduce but not harm it
for example, they can force companies to always pay for their own accounts, so nothing will change in this case.
What will change it for many businesses, it will be easier for them not to announce some income (as they actually do with cash but easier).

[sebs_on_fire]

As individuals we can all celebrate the death of income tax for a short while and spend the extra money on foot massages,.. BUT the idea of tax itself at its core is not an entirely bad one. We all to some extent make use of the public domain, shared infrastructure which has to be paid for. So at some point, the crypto economy has to address this need, hopefully in a much more efficient and less corrupt way than is currently the case. Ideally everyone is on the blockchain and part of the protocol is that all transactions carry a small fee that is collected by a global tax fund and goes towards building and maintaining public infrastructure. Perhaps some transactions can be exempt of the fee in the same way that we have today, for charities, educational institutions, etc.

[jsscswan]

Yes it is true, bitcoin will kill income tax for those who actually work in bitcoin and pay for transactions using bitcoin. but If he works in bitcoin and as a permanent worker in the company then he still pays income tax from salary results in the company.

[julzcoinbit]

Unfortunately, in my country you still have to pay taxes when you are cashing out your coins and also you cannot cash them all out you can only do in in a limit this way you have to pay a lot of taxes if you want to cash everything out.

Yeah, I guess we're in the same country. We can't really avoid cashing out our coins coz we need fiat to buy stuffs. There are only few stores who accepts bitcoin as mode of payment and there are no malls that accept bitcoin. That is why we can't really avoid paying taxes if we convert our coins into fiat.

[inevertell]

In my country most people have a lot of problems from income tax because mostly people are poor they have no strong financial support but they have to pay a large amount of income tax to government. So if the crypto currency will continue their success period in future just like past then off course people will get a big benefits from crypto currency and will kill the income tax.

[deisik]

In terms of micro economics taxation is an evil, as pushes the equilibrium away from supply = demand. However, it is a necessary evil. A complete removal of taxation would not be to the benefit of anyone else than the extremely wealthy, if them. There are so many projects that are not profitable enought for a private company to go through with that needs to be done. Let's just take hospitals as an example. If they are completely privatized profitability would be the main objective. This would mean that a lot of people would die simply because they aren't lucrative enough customers. In the short term a removal of taxes might offer some more spending cash, but in the long term it dissolves what keeps a country together. So I surely do hope they find new, clever ways to enforce taxation.

I somewhat agree and somewhat disagree with you and your point

And I certainly understand what you refer to. Basically, you say that without taxes there won't be enough money to create the public infrastructure that people of all incomes can use (like hospitals, roads, and a lot of other things). But if we talk about fiat, the government already receives an inflation tax on every penny it happens to print. And it is not a one-shot event, i.e. every penny gets taxed all year round as inflation plows its way. Further, the government is likely the most inefficient structure out there in respect to using the taxes collected. Corruption is haunting every government since ancient times till now. So what makes you think that taxes as they exist today is a necessary evil? It is like saying that the government itself is a necessary evil. It is certainly evil but is it really necessary today?

[Wishcoin.IO]

In the UK cashing out cryptocurrency of any kind into FIAT is considered a taxable profit / investment - especially if there's a gain on that profit (i.e. you were paid in bitcoin for a service or product).

The thing is, as governments and regulatory bodies around the world become clearer on the path of cryptocurrency - they will adopt processes in order to explore the blockchain(s), the fact that cryptocurrency is openly available to everyone means anyone can monitor the balance of specific addresses, transactions and one thing that could become apparent is the closer links between how we exchange crypto for FIAT currency.

As all these things become a more standard way of completing transactions, regulation will catch up as it always has done for many of centuries before, and will continue to into the future.

[2taps]

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.

I figure bitcoin won't execute pay charge since exchanges is going on online , And the legislature will most likely make a move keeping in mind the end goal to keep the slaughtering of salary assess. Perhaps it is relying upon the nation.

[Topper]

With BTC as legal tender, you'll need no income tax. There was no income tax on US citizen, before the FED act.

[aoluain]

OK I think that taxation is good and is necessary!
Without taxes how would a health service, law enforcement,
Social welfare system survive?

This is one of the reasons why bitcoin will never be legalised,
Unless there is regulation and related taxation it is not
Beneficial to society in general

[shield132]

OK I think that taxation is good and is necessary!
Without taxes how would a health service, law enforcement,
Social welfare system survive?

This is one of the reasons why bitcoin will never be legalised,
Unless there is regulation and related taxation it is not
Beneficial to society in general

Of course it's necessary and without that goverment won't be able to develope but taxes has to be normal also, not very high. Still don't have any idea why these people thinks bitcoin is tax free. No man, where I live it doesn't matter what kind of currency you use, you have to pay some percent of your profit. If it's bitcoin, it will be converted in national currency. I know banks here pay to goverment for bitcoin services. It will be like that in every country.

[pixie85]

OK I think that taxation is good and is necessary!
Without taxes how would a health service, law enforcement,
Social welfare system survive?

This is one of the reasons why bitcoin will never be legalised,
Unless there is regulation and related taxation it is not
Beneficial to society in general

The question is: are those things good, do we need them. We could say that health services are needed, but we are forced to pay our medical bills anyway!
When I go to the dentist I always pay because otherwise I'd have to wait in line for weeks to get an appointment. Same with most other things. You need an x-ray done? You pay! You need a home visit? You pay! The only thing my taxes cover are emergencies, like car accidents and stuff, but I could choose to pay for that myself! No need for taxes to riop me off. And I'm against the welfare system.