Bitcoin Will Kill The Income Tax

[dfox101]

Don't think bitcoin will kill the income tax at all. In US, the IRS already asked people to report bitcoin's income. Of course you can choose to hide it, but it is no different than you have a foreign bank account, once caught it will be expensive for you.

[pooya87]

Don't think bitcoin will kill the income tax at all. In US, the IRS already asked people to report bitcoin's income. Of course you can choose to hide it, but it is no different than you have a foreign bank account, once caught it will be expensive for you.

that is not a new thing. they have always been asking (forcing) people to report their income and their bitcoin income has never been any different. it is all about the volume, if you are earning a large amount of money through bitcoin the tax agency (IRS or others in other places) will come knocking at your doors sooner or later if you don't report it yourself.

[Zadicar]

Don't think bitcoin will kill the income tax at all. In US, the IRS already asked people to report bitcoin's income. Of course you can choose to hide it, but it is no different than you have a foreign bank account, once caught it will be expensive for you.

that is not a new thing. they have always been asking (forcing) people to report their income and their bitcoin income has never been any different. it is all about the volume, if you are earning a large amount of money through bitcoin the tax agency (IRS or others in other places) will come knocking at your doors sooner or later if you don't report it yourself.

Even they will knock on your door just reminding to pay your taxes but for sure people will not pay attention into it unless if your account id being discovered completely and your identity already known then thats the time you will definitely pay your taxes but if government wouldnt still know your hidden income or money possesion they will remain undiscovered and thats the beauty of bitcoin.

[Gss2k2]

I think the only way for the government to tax is by withholding profits through US base exchanges like coinbase. These companies have to relocate to different country that does not have capital gain tax or what not.

[chesatochi]

Don't think bitcoin will kill the income tax at all. In US, the IRS already asked people to report bitcoin's income. Of course you can choose to hide it, but it is no different than you have a foreign bank account, once caught it will be expensive for you.

What I think is simply a question of honesty in your declaration when you do your tax report annually. Always have people who avoid paying tax, and this is not something new, this happened event before Bitcoin existed.

[cpfreeplz]

The wealthy already avoid many taxes. I don't think Bitcoin will make that much difference in tax avoidance. Taxes will still be collected on purchases at regular business and possibly when cashing out Bitcoin.

Wtf lol. Where do you live that doesn't have sales tax? This is about income tax. The government gets you coming and going. You made $30,000? I'll take 7. Now of that $23,000 you'll pay 13% tax on everything so it's really only worth ~$20,354. No wonder if rich people avoid taxes they get richer. Us poor bastards would save $10,000 a year!!!

[Senor.Bla]

The wealthy already avoid many taxes. I don't think Bitcoin will make that much difference in tax avoidance. Taxes will still be collected on purchases at regular business and possibly when cashing out Bitcoin.

Wtf lol. Where do you live that doesn't have sales tax? This is about income tax. The government gets you coming and going. You made $30,000? I'll take 7. Now of that $23,000 you'll pay 13% tax on everything so it's really only worth ~$20,354. No wonder if rich people avoid taxes they get richer. Us poor bastards would save $10,000 a year!!!

I think he has sales tax in mind if he talk about purchases at regular business, so there is no way to avoid these. But this is still about income taxes like you pointed out. You have to pay those and as fore as i know the law states that you have to pay on your income. They does not specify in which currency the income is earned, so by using bitcoin you are not free of taxes. Just because it is harder to detect if you paid your taxes accordingly or not it does not mean that not paying is legal.

[Shenzou]

For many people who uses the bitcoin know that it is freelancers' friendly and the best way to get paid , not only because it has an added value that changes every day but also it is tax free , the only time you pay fees on bitcoin is when exchanging them to real money using credit card and those taxes go to the bank in the country you withdraw the money from , but if there was taxes on bitcoin in the internet where those taxes go?, the bitcoin is something that is not owned by any specific company or country so to whom those taxes go .

[Sithara007]

Wtf lol. Where do you live that doesn't have sales tax? This is about income tax. The government gets you coming and going. You made $30,000? I'll take 7. Now of that $23,000 you'll pay 13% tax on everything so it's really only worth ~$20,354. No wonder if rich people avoid taxes they get richer. Us poor bastards would save $10,000 a year!!!

The laws are the same for every one, and in most of the countries the tax rates for the rich are greater than those for the poor. Some people manage to pay less taxes, as they prepare their tax returns intelligently.

[chixka000]

How will this exactly kill the income tax?  I understand what is being written, however the income tax is still due whether or not it is collected from the door or not.  Not paying it will be considered tax evasion and that is not good.

Even if you do not pay your tax because you were using bitcoin that does not mean anymore that bitcoin could really eliminate tax(Government can surely review your assets especially if you leave in US or UK you are being monitored (just like what happened to coinbase that has a pending case because of not showing its customers records)

[FaucetRank.com]

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

If that happens India then it will be good because then no one I mean even it is big business man or middle class person he would show his 100% true income because he will not worry to pay tax on his income. 

[Sithara007]

How will this exactly kill the income tax?  I understand what is being written, however the income tax is still due whether or not it is collected from the door or not.  Not paying it will be considered tax evasion and that is not good.

Even if you do not pay your tax because you were using bitcoin that does not mean anymore that bitcoin could really eliminate tax(Government can surely review your assets especially if you leave in US or UK you are being monitored (just like what happened to coinbase that has a pending case because of not showing its customers records)

Nowadays, tax evasion is getting more and more difficult, for ordinary people. The government surveillance is getting stricter and stronger. Only the oligarchs and the billionaires are stashing their money in tax heavens now.

[chixka000]

How will this exactly kill the income tax?  I understand what is being written, however the income tax is still due whether or not it is collected from the door or not.  Not paying it will be considered tax evasion and that is not good.

Even if you do not pay your tax because you were using bitcoin that does not mean anymore that bitcoin could really eliminate tax(Government can surely review your assets especially if you leave in US or UK you are being monitored (just like what happened to coinbase that has a pending case because of not showing its customers records)

Nowadays, tax evasion is getting more and more difficult, for ordinary people. The government surveillance is getting stricter and stronger. Only the oligarchs and the billionaires are stashing their money in tax heavens now.

Well, it depends if to what certain place you are currently in. If you happens to leave in the first world countries especially in europe or United States then you are probably right but when you are on the other places in which government can't function properly then tax evation is as easy as hell especially if you are a small time earner.

[Sithara007]

Well, it depends if to what certain place you are currently in. If you happens to leave in the first world countries especially in europe or United States then you are probably right but when you are on the other places in which government can't function properly then tax evation is as easy as hell especially if you are a small time earner.

Even in certain third world nations, the government is cracking hard on tax evasion. The recent demonetization drive by the Indian government is a good example. Earlier, these third world nations tolerated tax evasion to a certain degree. That is no longer the case.

[Harlot]

I don't think the government will be outsmarted by some businesses. When they start to notice that there is a decrease in their income tax they will know the source of the problem, they might even count as using Bitcoin as Tax Evasion. Anything that is a source of a company's income is taxable including Bitcoin of course.

[chixka000]

Even in certain third world nations, the government is cracking hard on tax evasion. The recent demonetization drive by the Indian government is a good example. Earlier, these third world nations tolerated tax evasion to a certain degree. That is no longer the case.

Yes, of course that is part of their job but the truth their is that most of the people on those certain countries really does not pay their taxes, as i have seen only most of the big time people are the ones who were ask by the government so basically they don't have any clue to those small time ones.

[Senor.Bla]

I don't think the government will be outsmarted by some businesses. When they start to notice that there is a decrease in their income tax they will know the source of the problem, they might even count as using Bitcoin as Tax Evasion. Anything that is a source of a company's income is taxable including Bitcoin of course.

The best part is, that if they think some funny business is happening, that they can just guess your income and you have to prove them wrong, which would be hard. I might and actually hope that i am wrong on this one, but that does not sound like something i would want to have to go thru.

[The One]

It can kill income tax but not the tax itself. Confused ?

Income tax is an illusion because people think they pay income tax. In fact, income tax is deducted not pay. The tax goes on the expenditure column of the double book-keeping, accountancy, and added to the cost of goods and services. When consumers spend their money, that is when we pay income tax. All taxes on businesses is paid by consumers. If Bitcoin were to kill income tax the government will be force to drop this illusion. It will simply charge income tax on the business's wage bill. I.e Business wage bill £1m. Tax 20%. Total wage bill £1.2m. People will see no difference in prices in shops and we all still be paying taxes. The illusion will stop. That's all. The current illusion means £billions are waste on tax collection and refund, tax code for each individuals, etc. A 20% tax on wage bill require few tax collectors.

[BlockEye]

Even in certain third world nations, the government is cracking hard on tax evasion. The recent demonetization drive by the Indian government is a good example. Earlier, these third world nations tolerated tax evasion to a certain degree. That is no longer the case.

Yes, of course that is part of their job but the truth their is that most of the people on those certain countries really does not pay their taxes, as i have seen only most of the big time people are the ones who were ask by the government so basically they don't have any clue to those small time ones.

Maybe they don't have no clue on small ones because those business no matter how big or small if it is not registered by their municipality or in any government relating to registration will not really assigned tax to them because they might even not know that their business exist. Same with bitcoin it is no charge for tax because some government doesn't know that it exist though they may know but still don't have any chance to make it a big deal.

[chixka000]

Maybe they don't have no clue on small ones because those business no matter how big or small if it is not registered by their municipality or in any government relating to registration will not really assigned tax to them because they might even not know that their business exist. Same with bitcoin it is no charge for tax because some government doesn't know that it exist though they may know but still don't have any chance to make it a big deal.

Of course it does matter if how big or small the business is. If the business is too big obviously it can be easily seen and monitored by the local government but considering if those partners were paying their taxes was a whole lot different story