Bitcoin Will Kill The Income Tax

[IceOleg]

Most likely the government will find a way to control cryptocurrencies transactions, that's what they start to do in China, that's going to happen all around the world soon. At the country where I live now (Vietnam) they are planning to make BTC an official payment method for governmental services - I'm sure that one of the ways they want to get taxes from citizens.

And we should always remember - taxes are good! No one wants to pay them, but it's the source of money to kepp infrostructure growing!

[malikusama]

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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Taxation on bitcoins was the major issue governments have faced during the past couple years, but governments have managed to somehow slightly tackle this problem by regulating it.
To not use fiat or banking system and completely be with bitcoins is somehow seems unreal because still now bitcoin is not accepted as payment method in majority of the stores, retailers , market and restaurants etc.

[Marileno]

It may well hinder the funds that government will collect and therefore negatively impact the services we receive from said government. The problem is that the powers that be are not just going to sit around and do nothing. Bitcoin will be attacked and legislated against once it becomes big enough for governments to be concerned about.

[millgates]

Governments will always find a way to generate revenue. If people stop paying income taxes due to technology facilitating tax avoidance, they may start imposing hefty taxes on the sale of cryptocurrencies and other assets to make up for income tax loss.

Yes,  government can get the tax of bitcoin by instruct the merchants and businesess to apply the taxation in every costumers buys using bitcoin. Even IRS has arranged in detail about taxation in bitcoin,  the bitcoin users must pay the tax using dollar not bitcoin so they have to make calculation first.

[Pleione527]

This one reason why government wants to have control over bitcoin because they cannot impost tax for it. Bitcoin does not have any transaction trail which will became difficult for government to trace even the ownership is private this primarily will resulted to non impost of income tax and can really kills taxes of a country.

[deisik]

Most likely the government will find a way to control cryptocurrencies transactions, that's what they start to do in China, that's going to happen all around the world soon. At the country where I live now (Vietnam) they are planning to make BTC an official payment method for governmental services - I'm sure that one of the ways they want to get taxes from citizens

Are you sure of that?

Since if you are and the government is really going to accept Bitcoin as a means of payment for public services, that basically means that you can pay taxes in Bitcoin directly. Taxes (as you yourself imply) by their very nature are the payment for such services (i.e. "the source of money to keep infrastructure growing"), and paying taxes in some token effectively makes this token into a legal tender since the definition of legal tender is exactly that, i.e. a means of payment for all public debts, taxes, and duties

[cipher-x_09]

Not yet I guess if this come to happen we can say it's the start of the downfall of the economy of our country.But it's still a long way though even people prefer that much lesser but I think most people would much the simple and safe way,why? people would rather prefer their known way of method.

[Razick]

Most likely the government will find a way to control cryptocurrencies transactions, that's what they start to do in China, that's going to happen all around the world soon. At the country where I live now (Vietnam) they are planning to make BTC an official payment method for governmental services - I'm sure that one of the ways they want to get taxes from citizens

Are you sure of that?

Since if you are and the government is really going to accept Bitcoin as a means of payment for public services, that basically means that you can pay taxes in Bitcoin directly. Taxes (as you yourself imply) by their very nature are the payment for such services (i.e. "the source of money to keep infrastructure growing"), and paying taxes in some token effectively makes this token into a legal tender since the definition of legal tender is exactly that, i.e. a means of payment for all public debts, taxes, and duties

The only way governments would be able to tax Bitcoin is if they do what you just said - require payment in Bitcoin directly. Otherwise good luck trying any other method. And someone just proposed they tax exchanges. In my view this is actually the best option that governments have at this point as they can track each person's trades and tax based on that. Everyone would need to upload their IDs and such and have one account only per person.

[Remainder]

I think there are already imposed tax on every cash-in and cash-out transaction we made, in my country coins.ph my wallet provider paid tax for their services in our government.

[Adioliver]

There's still a long way to go as majority of people in this world don't even know what bitcoins is,but yes bitcoins can kill taxation.But there will rise some problems too like if income tax is completely killed the budget balance might get out of place which can lead to many problems.

I read the article overall the idea is pretty cool.

[RamBahadur.Gurung]

I think there are already imposed tax on every cash-in and cash-out transaction we made, in my country coins.ph my wallet provider paid tax for their services in our government.

Unfortunately, you need to pay additional taxes once you cash out your coins. Whatever tax paid by coins.ph is for the service of trading Bitcoins. But whatever profits you get out of the trade is not tax-free. Depending on the duration of the holdings, you may be needed to pay long term or short term capital gains tax.

[Paultron]

Unfortunately, in my country you still have to pay taxes when you are cashing out your coins and also you cannot cash them all out you can only do in in a limit this way you have to pay a lot of taxes if you want to cash everything out.

[RamBahadur.Gurung]

Unfortunately, in my country you still have to pay taxes when you are cashing out your coins and also you cannot cash them all out you can only do in in a limit this way you have to pay a lot of taxes if you want to cash everything out.

That is, if you are going through the legal route. There are thousands of options out there to avoid taxes and it is up to you whether to use these methods or not. For example, you can order pre-paid Bitcoin debit cards from various service providers and withdraw fiat cash from the ATMs.

[deisik]

Most likely the government will find a way to control cryptocurrencies transactions, that's what they start to do in China, that's going to happen all around the world soon. At the country where I live now (Vietnam) they are planning to make BTC an official payment method for governmental services - I'm sure that one of the ways they want to get taxes from citizens

Are you sure of that?

Since if you are and the government is really going to accept Bitcoin as a means of payment for public services, that basically means that you can pay taxes in Bitcoin directly. Taxes (as you yourself imply) by their very nature are the payment for such services (i.e. "the source of money to keep infrastructure growing"), and paying taxes in some token effectively makes this token into a legal tender since the definition of legal tender is exactly that, i.e. a means of payment for all public debts, taxes, and duties

The only way governments would be able to tax Bitcoin is if they do what you just said - require payment in Bitcoin directly. Otherwise good luck trying any other method. And someone just proposed they tax exchanges. In my view this is actually the best option that governments have at this point as they can track each person's trades and tax based on that. Everyone would need to upload their IDs and such and have one account only per person

This won't work out for obvious reasons

And it is not just about taxing Bitcoin specifically or Bitcoin exchanges in general. Ultimately, it is about taxing everything (mostly the profits of companies and corporations), and this is where tax havens and offshores massively kick in and effectively destroy all such efforts on the government part. In other words, the "methodology" of rendering government interference futile, null and void is already there, has been there for decades, and is pretty polished and robust as well as efficient and effective

[BrockHunter]

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.

As quoted if bitcoin is legalised people will pay tax giving value to it. At the same if its legalised it will come under a central authority which is not good for the growth of bitcoin. For this reason people could pay taxes even before legalised based upon the transactions made or based upon the profiting.

Truly. On the off chance that we just utilized bitcoin as our exchange and not transform it to fiat then we don't have to pay impose. Still there are numerous potential outcomes for government to track and put charge for a bitcoin client. On the off chance that they discover bitcoin is being changed over into fiat and they will apply assess there. This will be a similar case for bitcoin platinum cards as well.

[Restmand]

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

yeah! i absolutely agree in this topic! bitcoin will kill the income tax, so its good to be know the bitcoin by all of the people in our society . i think that because some country can't allowed bitcoin in their country because of its characteristics. bitcoin can't collect any interest or tax in you. its 100% guarantee. what you earned is what you get. it don't get any form of taxes. so the government does not allowed it because they know if the people knew about the characteristic of bitcoin it can be a issue or crisis in the government place.

[nickdoycrypto12]

Unfortunately, in my country you still have to pay taxes when you are cashing out your coins and also you cannot cash them all out you can only do in in a limit this way you have to pay a lot of taxes if you want to cash everything out.

That is, if you are going through the legal route. There are thousands of options out there to avoid taxes and it is up to you whether to use these methods or not. For example, you can order pre-paid Bitcoin debit cards from various service providers and withdraw fiat cash from the ATMs.

I agree that there's a lot of options to do that, but the idea about that it will kill the income tax is not certain at all. That's why it should be categorize that fiat must be taxable and digital type of currency is not.

[Lieldoryn]

It seems to me that for a long time need to change the approach to taxation.Income tax should be repealed and leave only the turnover tax.If a person keeps the money in the account they are working on the development of the economy.When a person spends money he pays sales taxes.

[thebanker28]

I don't this think will actually be the case in the majority of instances. The tax authorities have gotten very good at identifying all forms of schemes where people avoid tax and while you might be able to accumulate BTC you will most likely be nabbed once you go to spend it.

Try explain the new Lambo when you are on minimum wage?

[Juggy777]

Unfortunately, in my country you still have to pay taxes when you are cashing out your coins and also you cannot cash them all out you can only do in in a limit this way you have to pay a lot of taxes if you want to cash everything out.

That is, if you are going through the legal route. There are thousands of options out there to avoid taxes and it is up to you whether to use these methods or not. For example, you can order pre-paid Bitcoin debit cards from various service providers and withdraw fiat cash from the ATMs.

Yes I agree you don't need to be a saint and go through the legal route, all you need to avoid the platform that take your private details, like name, address or any legal documents. Say if you have your coins, on coinbase.com or electrum how in the world will your government find out you have coins, all you need to transfer it to someone abroad or here in the forum or local Bitcoin. Ways are many, if I wanted to pay taxes why would I use Bitcoins.