Bitcoin Will Kill The Income Tax

[fearcoka]

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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As you said there just a "tax avoidance" made by using cryptocurrency. Yes, as of now it's very easy not to report income derive cryptos due to anonymity of transactions and tax bureau would hard hard time of tracking each transaction but I don't think it could kill income tax. It's much possible that government can make another law/bill with regards to reporting of crypto income and paying tax due.

The Japanese government did that! They are managing the activity through cryptocurrency in their country. As far as I know, they can catch the criminal used cryptocurrency for crime and money laundering since they accepted cryptocurrency is legally in Japan. So, it's not difficult to know someone are using cryptocurrency and tax them.

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[w5pn73]

Bitcoin will never kill the income tax. But I'm starting to feel like the freedom that comes with bitcoin might start fading away when more and more regulations come.

[n691309]

This taxation issue with bitcoin is the biggest threat not only for the government but for also for bitcoin users. LOOK! if the government will suffer on the economy of their country, TAX we all know that tax is the source of budget of every government to make their own country move and develop. So, If bitcoin will continue to run and bankers will start to move into this coin, investors on fiat move their investment to bitcoin or some Crypto? government will start to move against bitcoin just to sustain their needs to provide services to its citizen. The solution is to divide the transfer fee into half and make it a tax for the government.

[tittensor]

This taxation issue with bitcoin is the biggest threat not only for the government but for also for bitcoin users. LOOK! if the government will suffer on the economy of their country, TAX we all know that tax is the source of budget of every government to make their own country move and develop. So, If bitcoin will continue to run and bankers will start to move into this coin, investors on fiat move their investment to bitcoin or some Crypto? government will start to move against bitcoin just to sustain their needs to provide services to its citizen. The solution is to divide the transfer fee into half and make it a tax for the government.

Actually the solution to help Bitcoin be legally in worldwide is very easy. It will not against the rule of government and help the government have more profits the tax, but do the Bitcoin user accept it or not! Because they must to spend their money and information to verify on exchange, as Bittrex, Poloniex and BTC-e (now is WEZ), these exchanges all used KYC to verify user and are ready to provide information of user for the government if they want to tax the Bitcoin user.

[Trela]

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

As you said there just a "tax avoidance" made by using cryptocurrency. Yes, as of now it's very easy not to report income derive cryptos due to anonymity of transactions and tax bureau would hard hard time of tracking each transaction but I don't think it could kill income tax. It's much possible that government can make another law/bill with regards to reporting of crypto income and paying tax due.

The government can tax the cryptocurrency user through exchange sites. Do you see Poloniex, Bittrex, Bitfinex or other large exchanges need user verify KYC? That is the method to help the government know the total capital of every user and tax crypto user through profits and that amount.

[Rebelf]

NEO is a superb rojet indeec. I hope we will see some guaranteeing announcements from their Search engine optimization quicklypd

[dynospytan]

No, bitcoin cannot kill income tax. Yes we don't have income tax to those people who are earning bitcoins. But many people are still working in a company and we're bitcoin earners are just few. So income tax is still there and if that happens each country's economy will fall down.

[zhelis74]

No, bitcoin cannot kill income tax. Yes we don't have income tax to those people who are earning bitcoins. But many people are still working in a company and we're bitcoin earners are just few. So income tax is still there and if that happens each country's economy will fall down.

As of this time that bitcoin was still in developing stage then i don't think so that it will kill income taxation, but definitely it affect its revenue because more and more people is now contented to be a self employed and working in online job and as a decentralized system the government could not get tax of it. In other side i think business tax will rise also because the money that have get by the people from bitcoin will be spend to purchase goods and services then in that way the government can get tax on that business.

[Jombrangs]

In my own study bitcoin cannot kill the income tax in all countries in the world.
Income tax is very essential in the government since it is the life blood doctrine of the system besides not all people are depend or using bitcoin many people still working as a employee in different companies.

[geo43]

The government always finds a way to tax its citizens. Bitcoin transactions are technically linked to bank accounts, at least the process of converting fiat to Bitcoin is.

[jack107]

I'm really interested to see how this plays out. Yes that idea is great, but the US is getting more savvy about bitcoin and crypto in general. All will come in time.

[Quantex]

No, bitcoin cannot kill income tax. Yes we don't have income tax to those people who are earning bitcoins. But many people are still working in a company and we're bitcoin earners are just few. So income tax is still there and if that happens each country's economy will fall down.

Bitcoin can't kill the tax, because we do our fiat money transactions via centralized exchanges which are directly in relationship with governments and financial institutions of the state. That's the reason.

[Zandar]

In the Netherlands since 2017 the tax has come with an absurd rule. You need to file all your crypto currency on what it was worth at 1 januari 2017 and pay taxes on that amount, it doesn't matter to them if you held them and they got worth less later on. Ofcourse there is no taxes if the amount is below 25k euros. So those that filed taxes for their crypto on januari 1st 2017 when bitcoin was only worth 850 euro at that time, only need to pay taxes over it as if it is still 850 worth while in reality it is practicly ten times that worth now. The taxes in the Netherlands really have no clue how crypto works or functions. So with the rising of crypto people were in luck this year.
But those that want to file taxes in 2018 will need to fill out their cryptos worth as what it will be worth at january 1st 2018. Even if it will decline for the rest of the year.
So in short it's first 25k is taxfree, 26-75k gets taxed for 0.86%, 75k-975k gets taxed 1.38%, over 975k it will be taxed as 1.61%.
Ofcourse if you don't tell they can never proof if you have crypto untill you turn it into fiat. In other words turning your crypto into fiat while staying under 25k euro per year will leave you scot-free.

[Boseda]

I hope so and I'm confident it will do. Income taxation means being a slave of the government.

[haster100]

that's for sure. The world of cryptography will disable the income tax if we actually use bitcoin directly without the first exchange bitcoin with other currencies

[manoj kumar k]

Deffinitly the bitcoin will kill the income tax because the transaction details in the bitcoin will be not visible to government

[Andre#]

No, bitcoin cannot kill income tax. Yes we don't have income tax to those people who are earning bitcoins. But many people are still working in a company and we're bitcoin earners are just few. So income tax is still there and if that happens each country's economy will fall down.

Bitcoin can't kill the tax, because we do our fiat money transactions via centralized exchanges which are directly in relationship with governments and financial institutions of the state. That's the reason.

It is only your method to exchange Bitcoin directly through the centralized exchange and you do not know anyone can exchange Bitcoin P2P with you.
While, there are many people know the nature of Bitcoin and take advantage its nature to create many transactions without government tax.

[mescalito]

I think many people will be unwillingly avoiding taxes when it comes to forks and airdrops. It'll be funny to see their dilemma when they find it out say 2 years afterward whether to pay some small fine or risk jail time 

[Genosx]

It is a big no. The bitcoin has no authority or any chances that they can remove the income tax.
Taxation is the life blood doctrine wherein the biggest collection is came from the income tax; if there will be no income taxation, there will be no government who implement the law and manage the process in the economy.

[jasonmattson]

I dont have no idea over all  but The first priority should be to increase adoption.