Bitcoin Will Kill The Income Tax

[Kevin77]

Thats hard to happen nowadays. Most people worldwide still using fiat and banking systems and few number of them know about Bitcoin and crypto currencies and deal with it. So may be Bitcoin will kill the income tax if it will become the first used currency worldwide, but that's not yet the case.

It is true that the bitcoin is still not used by that many people so governments start imposing taxes on it , but what about the ones that have a huge amount of bitcoin and they want to exchange it into fiat , wouldn’t that be a lost for the government if they don’t pay tax, maybe in the future when it became more popular they will start imposing taxes.

[hgmichna]

It is true that the bitcoin is still not used by that many people so governments start imposing taxes on it , but what about the ones that have a huge amount of bitcoin and they want to exchange it into fiat , wouldn’t that be a lost for the government if they don’t pay tax, maybe in the future when it became more popular they will start imposing taxes.

Capital gains from buying and selling bitcoins have always been taxed in most jurisdictions.

[hurain]

It will surely kill income tax if bitcoin adoption will spread throughout the globe and that's why most government would really not let this thing to happen that's why they will ban bitcoin on their place.people love bitcoin because they have the full control of their money.

the only reason behind this fact is that still governments still not turn bitcoin as legal currency, i think if they consider bitcoin as legal currency then they will certainly put tax on it and will get a good amount of tax from bitcoin, i think governments must be thinking about that.

[str4wm4n]

Does anyone know any American that has NEVER EVER FILED income tax?

[gribble]

It will surely kill income tax if bitcoin adoption will spread throughout the globe and that's why most government would really not let this thing to happen that's why they will ban bitcoin on their place.people love bitcoin because they have the full control of their money.

Yes i agree with this one, actually if the government considers bitcoins as properties are like house, land and other. They can take taxes from bitcoins owners and they doesn't banning usage of bitcoins, it will give income for government via tax.

[25forsure#]

This will create the biggest war against bitcoin.

[charmingfreddie]

Of course it will kill the income tax especially in the US where taxes are crazy and illegal.  It could make the end of the US government and the beginning of high unemployment which will be bad for everybody. There will be a lot of chaos I think.

[ophyrim]

In my opinion, when the governments remark that their total tax income price decreases because of bitcoin or other cryptocurrencies market, they will change and adapt their tax system at the cryptocurrencies. As you know cryptocurrencies mean anonymity, this will be not easy. Or they can just increase other taxes or create new taxes.

[wxa7115]

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

Not likely, since you can track bitcoins transaction very easily and the governments are taking measures to make sure their citizens don't avoid taxes using bitcoin, at best bitcoin will be a way for some tech savvy individuals to not pay their taxes.

[calkob]

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 just cant see this being allowed to happen, the governments will come up with some way of continuing to bleed us all dry, 

[Pattart]

Of course it will kill the income tax especially in the US where taxes are crazy and illegal.  It could make the end of the US government and the beginning of high unemployment which will be bad for everybody. There will be a lot of chaos I think.

if most companies adopt bitcoin for their transactions, and it will make the government can not track the company's financial turnaround, so the government can not give how much tax must be paid

[Theb]

Of course it will kill the income tax especially in the US where taxes are crazy and illegal.  It could make the end of the US government and the beginning of high unemployment which will be bad for everybody. There will be a lot of chaos I think.

if most companies adopt bitcoin for their transactions, and it will make the government can not track the company's financial turnaround, so the government can not give how much tax must be paid

Taxes are not crazy and illegal they are essential for running a country. A government without a source of income will not have anything to build projects for their country. Also it will not result into a high unemployment because the companies who are evading taxes have no problems in paying their employees' salaries.

[Xester]

It will surely kill income tax if bitcoin adoption will spread throughout the globe and that's why most government would really not let this thing to happen that's why they will ban bitcoin on their place.people love bitcoin because they have the full control of their money.

Bitcoin cannot kill income tax. The government is now looking through exchangers and some countries are already placing tax in the form of additional fees during the exchange of bitcoin to fiat currency in the exchangers. In India they are considering to call bitcoin as a property that way they can place property tax to bitcoin holders. The government has its own ways how to collect taxes from bitcoin revenues, dont underestimate the government they are also upgrading their system to meet the flow of digital currency.

[BADecker]

Coinbase CEO Says Bitcoin Exchange Will Be 'Forced' to Fight IRS Order

In November of 2016, the Internal Revenue Service ordered bitcoin trading company Coinbase to hand over the identities of millions of customers who made transactions through the company over three years, to find out who hasn't been paying their taxes.

Now, Coinbase CEO Brian Armstrong has suggested in a Medium post that the company will go to court with the IRS, writing, "...it appears we will be forced to contest [the subpoena] in court to protect our customers' privacy, at great expense."

Online bitcoin exchanges are the key point of access for people buying or selling bitcoin. Coinbase, founded in 2012, is one of the oldest and largest.

The IRS ordered Coinbase to turn over the identities of all US customers who used the exchange between 2013 and 2015, in order to determine whether users have been paying taxes on their bitcoin.

Read More: How Coinbase Traders Are Fighting Back IRS Attempts to Reveal Their Identities

The summons has been highly controversial in cryptocurrency circles since it would reveal the identities of many people not under active investigation, and who haven't broken any laws. People do pay taxes on bitcoin (or they're supposed to), and according to the IRS, virtual currencies are treated like property for federal tax purposes.

"Asking for detailed transaction information on so many people, simply for using digital currency, is a violation of [customers'] privacy, and is not the best way for us to accomplish our mutual objective," Armstrong wrote.

Armstrong also suggested an alternate way forward for Coinbase and the IRS, which he writes is for all US bitcoin users to pay their taxes: Coinbase would send a yearly tax form that is commonly used by stock brokers to report financial gains or losses to customers and the IRS, he argued.

Read more at http://motherboard.vice.com/read/coinbase-ceo-says-bitcoin-exchange-will-be-forced-to-fight-irs-order.

[LeGaulois]

Given the coming economic and political insecurity in this country, maybe even rebellion, you can see why people are very bullish on cryptocurrencies 

[Japinat]

Coinbase CEO Says Bitcoin Exchange Will Be 'Forced' to Fight IRS Order

In November of 2016, the Internal Revenue Service ordered bitcoin trading company Coinbase to hand over the identities of millions of customers who made transactions through the company over three years, to find out who hasn't been paying their taxes.

Now, Coinbase CEO Brian Armstrong has suggested in a Medium post that the company will go to court with the IRS, writing, "...it appears we will be forced to contest [the subpoena] in court to protect our customers' privacy, at great expense."

Online bitcoin exchanges are the key point of access for people buying or selling bitcoin. Coinbase, founded in 2012, is one of the oldest and largest.

The IRS ordered Coinbase to turn over the identities of all US customers who used the exchange between 2013 and 2015, in order to determine whether users have been paying taxes on their bitcoin.

Read More: How Coinbase Traders Are Fighting Back IRS Attempts to Reveal Their Identities

The summons has been highly controversial in cryptocurrency circles since it would reveal the identities of many people not under active investigation, and who haven't broken any laws. People do pay taxes on bitcoin (or they're supposed to), and according to the IRS, virtual currencies are treated like property for federal tax purposes.

"Asking for detailed transaction information on so many people, simply for using digital currency, is a violation of [customers'] privacy, and is not the best way for us to accomplish our mutual objective," Armstrong wrote.

Armstrong also suggested an alternate way forward for Coinbase and the IRS, which he writes is for all US bitcoin users to pay their taxes: Coinbase would send a yearly tax form that is commonly used by stock brokers to report financial gains or losses to customers and the IRS, he argued.

Read more at http://motherboard.vice.com/read/coinbase-ceo-says-bitcoin-exchange-will-be-forced-to-fight-irs-order.

They really want to control us, good job for Coinbase for protecting the privacy of their clients. We are here for for privacy but if the government will enforce their laws to get our information then it will just defeat the purpose. They could make different method to let the traders who are making an income to pay the appropriate taxes but not all the users who are transacting online. Even banks has a bank secrecy law, what happen to IRS?

[slapper]

Of course it will kill the income tax especially in the US where taxes are crazy and illegal.  It could make the end of the US government and the beginning of high unemployment which will be bad for everybody. There will be a lot of chaos I think.

Wtf What are you talking about ? The USA know how to use their tax to build and improve the country. Only third world countries do not know how to use it. They uae tax to build social building, operate insurance system and everything is good for the country

[CyberKuro]

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.

[bitloud]

Yes. If we only used bitcoin as our transaction and not change it to fiat then we don't need to pay income tax. Still there are many possibilities for government to track and put tax for a bitcoin user. If they find bitcoin is being converted into fiat and they will apply tax there. This will be the same case for bitcoin debit cards too.

[wahb]

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.