Bitcoin Will Kill The Income Tax

[moonshoot]

maybe it will kill but now, it cannot because many of the users still working and paying their taxes and even in claiming bitcoin they pay taxes for it conversion fee and transfer fee.

The income tax is not about conversion fees and transfer fee,you have to file the income tax for the profit you are making through trading and if you want to be on the good book of the law you have to file the taxes properly,if not you might end up in trouble.

Or you can move to Puerto Rico and pay no taxes on your crypto gains. 

[1714287544]

1714287544

[mabell943]

No, the company of bitcoin has no authority or any power to do such thing.
In fact other countries tax the bitcoin which is a good thing since they provide some actions that will help the government and promote the fully legality of the business.

[Goti]

I think, rather the governments of all countries will come to the fact that they will introduce a tax on bitcoin.

[Marcus Kelly]

If personal Income Tax becomes a problem to enforce, then the goobermint will simply moving all taxation to the point of manufacturer and or at the port of entry. Far far fewer points to monitor in that case. I'd prefer it that way personally. The income tax is more of a surveillance tool, than the best way to tax anyway.

[Moses Short]

No, it won't.
If anything the IRS is going to be making more money on Tax Evasion fines with the way people around here just choose to not report anything to them.
For small amounts, sure, you might get away with it, but if you are making tens of thousands of dollars "vanish" by hiding it this way, you're probably going to find out the hard way.
Remember, you gotta have Fiat to buy it first, and that Fiat is probably sitting in a bank somewhere.
Good luck to all of you who choose to try to do this and think you're pulling one over on them. The same thing happened with offshore accounts. They found a way, and they nailed people to the wall who did it.

[Milo Hill]

Why would it be any different than current, under the table cash transactions (which make up a tiny portion of labor)? Why would there not be a system where employers paid direct deposit to your wallet, but not before withholding the proper amounts and sending it to the govt in BTC?

[hazznel]

But I heard some developing countries are internally proposing to withdraw the process of collecting income taxes. It could be a new revolution like they are thinking only taxes from business and properties are more than enough to run a government.

So, I believe bitcoin will not be the game changer here. It is a new trend that governments start think in different way.

http://www.thehindu.com/news/cities/mumbai/news/Will-abolish-income-tax-in-three-years-says-Swamy/article14395234.ece

Imagine that if they start giving a basic income for everyone, things will start changing, dramatically!

[basil89]

personally I cnat with for that to happen. Thats the only way we will get a balanced budget. สมัครufabet


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[davidny]

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

I don't think you are correct.
If the bitcoin we really be part of the money and paying method of the world I believe the governments we find a way to check who have bitcoin and how much.

[darklus123]

Why would it be any different than current, under the table cash transactions (which make up a tiny portion of labor)? Why would there not be a system where employers paid direct deposit to your wallet, but not before withholding the proper amounts and sending it to the govt in BTC?

because that is how the politics works. It may really be a pain in the ass but of course we have to contribute. Tho I don't agree on how the government do it. It should be a voluntary contribution for the citizens. I am glad tho that currently in the Philippines this is already happening by the newly signed tax reform law.

[cobeksede]

better taxable than deleted, my government is also upset with bitcoin developments so the government is worried about the nation's economy that causes unstable economics

[SaiWAFU]

Tax is essential to a country's growth. Income tax really sucks. But if the intention of bitcoin is to elude taxation, say goodbye to your country's economy. Because as we all know tax is used for government budget that's distributed in several branches. Education, infrastructures, health and benefits, etcetera.

[drm]

No, it won't.
If anything the IRS is going to be making more money on Tax Evasion fines with the way people around here just choose to not report anything to them.
For small amounts, sure, you might get away with it, but if you are making tens of thousands of dollars "vanish" by hiding it this way, you're probably going to find out the hard way.
Remember, you gotta have Fiat to buy it first, and that Fiat is probably sitting in a bank somewhere.
Good luck to all of you who choose to try to do this and think you're pulling one over on them. The same thing happened with offshore accounts. They found a way, and they nailed people to the wall who did it.

Except more people will work for bitcoins then will be buying from centralized exchanges in the future. The collapse of centralized exchanges will be the beginning of a bitcoin economy.

Can't wait for all these exchanges with their bad support and policies to get booted out by decentralized ones.

[pocketfullofpoke]

That's may be the reason why some countries are banning bitcoin and the cryptocurrencies because they already know that cryptos are decentralized so they can not intervene its operation. So whatever transaction is made in the blockchain, banks don't have any share of that, IMO.

[Trela]

No, it won't.
If anything the IRS is going to be making more money on Tax Evasion fines with the way people around here just choose to not report anything to them.
For small amounts, sure, you might get away with it, but if you are making tens of thousands of dollars "vanish" by hiding it this way, you're probably going to find out the hard way.
Remember, you gotta have Fiat to buy it first, and that Fiat is probably sitting in a bank somewhere.
Good luck to all of you who choose to try to do this and think you're pulling one over on them. The same thing happened with offshore accounts. They found a way, and they nailed people to the wall who did it.

Except more people will work for bitcoins then will be buying from centralized exchanges in the future. The collapse of centralized exchanges will be the beginning of a bitcoin economy.

However, I do not know any real decentralized exchange at current. EtherDelta or IDEX are the decentralized exchange, but I do not think these exchange are real decentralized exchange because the user still need to deposit to their contract + import private key if want to deposit token from our address, they can know our private key through this platform.

[Jating]

That's may be the reason why some countries are banning bitcoin and the cryptocurrencies because they already know that cryptos are decentralized so they can not intervene its operation. So whatever transaction is made in the blockchain, banks don't have any share of that, IMO.

Exactly, initially though, bitcoin and other crypto are not in the radar of the government, however, everything changes specially when it boom last year. The government wants a piece of the piece, so they are either going to ban it or just put a heavy regulations and get tax from us.

I think you guys should read this.

https://cointelegraph.com/news/irs-uses-chainalysis-to-track-down-bitcoin-tax-cheats

US have been using this software to track and hunt down citizens who are not paying taxes. So I think bitcoin will not kill the income tax in my opinion.

[Sean25pogi]

Actually the bitcoin has no capacity to kill the income tax of all countries in the whole world, because tax is the life blood doctrine of the government therefore as long there are government that governs as there is a tax.

[btcrich2020]

people are saving this asset in bitcoin the only reason is to save tax and be secured from bank scam people believed bitcoin is future

[Nkan25]

Until someone can convince somebody that tech can take over a huge bureacratic organization like IRS, then I think this is wishful thinking. Not to mention, Taxes has been a very polarizing issue with many sides dug into their beliefs. Until the tech can convince people or a crisis arises from it, then I think we are stuck on the status quo.

[Irvinn]

The question of bitcoin taxation is a very difficult problem for everyone. Bitcoin holders can transfer bitcoin to one another and this will, in principle, remain anonymous for the tax authorities. However, in most cases we can not do without exchanges, exchangers, banks and bank cards. And this can all be controlled by the state and force us to identify with each operation for the tax authorities. Therefore, to a large extent, we still will not be able to evade paying taxes. On the other hand, if the state and its tax authorities see this possibility and according to their calculations the amount of non-payment will be large, I think, in that case, they will either take more stringent measures, or limit or even prohibit the circulation of the crypto currency. So one can definitely say that bitcoin is not able to kill or change the taxation system. With such an attempt, the state will take more stringent measures and in the end it will not be good for bitcoin.