Bitcoin Will Kill The Income Tax

[rausvi15]

Yes it will totally kill the income tax .when people will totally depend on bitcoin which is a digital cryptocurrency that is they dont need any 3rd party .so why will they depend on banks ,as there will be no banks at all after quite some time .

I hope there will be no banks in future, but now a days we have to face bank transaction fees and exchange fees, which is equal to tax, so right know we are paying tax i the form of transaction fees, withdrawal fees, and exchange fees. I hope soon these fees will minimized so that we can say that we have some benefits by not paying income tax.

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[Kasabus]

Yes it will totally kill the income tax .when people will totally depend on bitcoin which is a digital cryptocurrency that is they dont need any 3rd party .so why will they depend on banks ,as there will be no banks at all after quite some time .

I hope there will be no banks in future, but now a days we have to face bank transaction fees and exchange fees, which is equal to tax, so right know we are paying tax i the form of transaction fees, withdrawal fees, and exchange fees. I hope soon these fees will minimized so that we can say that we have some benefits by not paying income tax.

Fees are different from real tax, we pay for that so they will make an income, that's normal when you are using a certain service.
Bitcoin can help us minimize our expenses for online transaction but we can never get free of charge or fees since the miners are working to earn.

[Nerman]

To be honest this is a reality we all know that we may hide our assets or income using crypto and that is the reason why some countries are banning Bitcoin or Crypto currency. We all hope that Bitcoin and Altcoin price would go up, and we all know that bitcoin becomes attractive because of decentralization but in reality we need the government to help us in developing our own country. We may not agree with the politician specially the corrupts one but without the government there would be chaos. Without taxes no one would develop our countries, as simple as lighting on the streets are funded by our taxes. I hope all of us will be honest with our taxes, you may fraudulently avoid taxes but sooner or later karma will get you.

[J Gambler]

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

Cryptocurrency is something that can potentially kill income tax in a way that it is not taxable and as it is electric and digital there might not be enough regulations on it. ALso, it is needed to note that cryptocurrency is currently an exception to everything as it is new

[patz22]

With the earnings that we can get in Bitcoin and other crypto since it is higher in any other regular jobs, I can say that IF only IF our government in any other country will manipulate this business our taxes will definitely kill our earnings. But this will not happen due to the fact that it will take a lot of time for them to interfere in this society (I put society since there's a lot of users )

[AmXProX]

To be honest this is a reality we all know that we may hide our assets or income using crypto and that is the reason why some countries are banning Bitcoin or Crypto currency. We all hope that Bitcoin and Altcoin price would go up, and we all know that bitcoin becomes attractive because of decentralization but in reality we need the government to help us in developing our own country. We may not agree with the politician specially the corrupts one but without the government there would be chaos. Without taxes no one would develop our countries, as simple as lighting on the streets are funded by our taxes. I hope all of us will be honest with our taxes, you may fraudulently avoid taxes but sooner or later karma will get you.

I don't see a way on how to hide your assets in bitcoin. Unless you are brave
enough to risk your assets to converting it to bitcoin. And besides once you have the coin
converted back to fiat it will be subject to taxes by most countries.

[abitCrypto]

I think still tax rules applies in certain countries, more specifically in USA, although there is no clear guidelines. In case of any kind of source/captial gains which you could get after converting to fiat money.

Bitcoin is been treated as property not as currency as of now in USA for Tax purposes. I believe other countries also going to follow the same model until they come up with full regulations.

[jc89]

It might cause damage to the tax income someday. But right now, it won't hurt that much because mostly taxes for the gov't came from businesses and of course every single thing that we buy in the market have VAT so even if we use btc in transacting we are still paying taxes. Like that burger you jist bought that costs five bucks or a pack of cigarettes and even that bottled water from the convenience store.

[Onimushi]

To be fair enough,  taxation is not that bad for bitcoin.  And it is possible to apply some laws here because as we know,  local exhangers needs KYC,  so governments can apply those rules on you by obligating the exchangers. We must accept this incoming kinds of adoption because  bitcoin right now improving and growing for a decade. And also,  don't assume that bitcoin is a pest for them [government] because as the futures  comes,  bitcoin will be widely used in coming eras. Generally  governments can't just ignore ths trend, because the will be left with the developments and improvement.

[hypersonic1]

there are two ways I can see bitcoin being taxed. Both require you to withdraw it first.

1.) as a general income: If you take in your bitcoin dividends as regular payments akin to income, you tax that to your income bracket at the end of the year depending on the total amount.

2.) capital gains: if you were to sell all of your bitcoin all at once into USD for example, that would be taxed automatically at a higher rate %15-35 if less than a year since your last buy or re buy of the same commodity, or a lower percentage for a long term usually %15-20.

You can apply this to your current holdings anytime you withdraw a significant amount. In fact use your exchange purchases for such proof when dealing with your loving tax agency.

[Baby Dragon]

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

This might be one of the reasons why some governments banned bitcoin now. But then again I won't fear that the government in my country will have issues with crypto currency because few people here are using it so bitcoin won't affect the taxation here. I have more freedom here when I am using bitcoins and hopefully the government here won't ever mind.

[Marucya]

No, bitcoin will not kill the profit tax established by the states. Despite the fact that such a tax is quite difficult to control, most of the citizens will pay it voluntarily and thereby provide protection of the state's crypto-currency. We have no other way. If the state sees a threat to its existence, it will go to repression, and such a scenario is dead-end for both the crypto currency and for the state itself.

[rickadone]

It might cause damage to the tax income someday. But right now, it won't hurt that much because mostly taxes for the gov't came from businesses and of course every single thing that we buy in the market have VAT so even if we use btc in transacting we are still paying taxes. Like that burger you jist bought that costs five bucks or a pack of cigarettes and even that bottled water from the convenience store.

We do not yet pay taxes for bitcoins directly but indirectly we do pay taxes for bitcoins. You truly mentioned a correct statement that we always need to pay the VAT for any commodity we purchase and the VAT here is nothing but TAX. We can't use bitcoins directly as a currency and always we need to change them to fiat and then use it.

For converting it to fiat, we always need some tax at least to deposit or withdraw the amount from our bank account. That tax indirectly goes to the government without actually knowing what it is for. I think, in future as bitcoins will be made legal, they will be applied with heavy taxes as the profits in bitcoins are great.

[Mehdi.Habib]

The present issues we need to take a decision. The use of bitcoin can not generate taxes for the government. There ought to be a direction at the earliest opportunity to organize this.

[turkmachiavelli]

ıt ıs very possible but everything have to change for example we can buy food with btc. We will can escape income tax it is very good for us. we spend this money for family or good jobs.

[komp1]

i think some how it will do so but as bitcoin continue and as individuals turned use to of it it will modify its term and problems and it will conclude a suitable way of taxation for the certain place of the consumer.....

[NorrisK]

ıt ıs very possible but everything have to change for example we can buy food with btc. We will can escape income tax it is very good for us. we spend this money for family or good jobs.

And what will happen once you start spending more cash then you can explain?

If its a few thousand here and there thats not really a problem, but if you buy a new car or a house? Good luck explaining how you got the money if you never paid taxes on your bitcoins.

[ene1980]

The present issues we need to take a decision. The use of bitcoin can not generate taxes for the government. There ought to be a direction at the earliest opportunity to organize this.

What issue are you talking about here,you need to pay your taxes when you cash out bitcoin,the people who are holding money in bitcoin through mining does not need to bother paying the tax until he converts them into fiat and so there is no action to be taken,people who convert their coins to fiat are paying their taxes ,if not they will get into trouble with the law.

[Yanisumin]

People are taking more and more interest in crypto currency it is because they have no tax in crypto currency because a lot of countries are taking a large income tax due to which more familiar have a great difficulties in paying because of their weak financial problems.

As they are saying, the life force in every years fund of ones country is because they are drinking on the tax, in transactions its impossible to looth tax into BTC but we can have a deal or example an employer is a shift engineer and he is earning 5000 dollars per month, he will just receive 4000 dollars plus because he has a deal in the company that tax and some other payments will be deducted on his salary and the company will pay him 4000 dollars plus in BTC. There are so many ways to use crypto including the payment of tax so dont worry.

[iyamoxjhian]

Here in my country? Definitely yes! That is why they consider here that the bitcoin is a black propaganda and scam which I don't agree. People saying that were greedy! They want to earn more money from our taxes under companies and those companies taxed us very huge amount which is unjustice! Even government employees were bothered of this huge taxes to think that the people who manipulates these taxes were same of our uniforms. For government reforms that has very famous graft and corruptions, they will oppose nor ban the bitcoin in the country as they can not put taxation on it. And to think that this is where they can get all the things that they need and their leisures. I am just hoping that those greedy officials should learn how to eat on their own sweat not on the sweat of others.