Should governments allow people to pay their taxes in Bitcoin BTC?

[dinofelis]

If it was an option in your country, would you pay your taxes with Bitcoin?

Let's do a small calculation.  Take a medium-sized country in Europe, say, France.  About 60 million inhabitants.  If these 60 million people paid their taxes with bitcoin, then that would mean: 60 million transactions.  At a rate of 3 transactions per second, that would mean, 20 million seconds.  231 days of full blocks.  By the time your taxes are paid, using the FULL BLOCK CHAIN, you can almost start over again.

France only.

Go figure if the US citizens and the Russians started paying their taxes in bitcoin too.

[1714271579]

1714271579

[LeGaulois]

Why not ? As they ask us to report the profits we make with buying and selling cryptos and so pay taxs on this, they should accept the people to pay with bitcoin. But one problem is, accepting the taxs to be paid with bitcoin, or others, would mean they accept that bitcoin is a currency

[deisik]

If it was an option in your country, would you pay your taxes with Bitcoin?

Let's do a small calculation.  Take a medium-sized country in Europe, say, France.  About 60 million inhabitants.  If these 60 million people paid their taxes with bitcoin, then that would mean: 60 million transactions.  At a rate of 3 transactions per second, that would mean, 20 million seconds.  231 days of full blocks.  By the time your taxes are paid, using the FULL BLOCK CHAIN, you can almost start over again

France is one of the biggest countries in Europe

In fact, by the size of its population it is ranked the second most populous country in Europe, after Germany (if we exclude Russia from consideration, though its European part would likely still beat any single country in Europe). Further, not all 60 million people will be paying taxes, you should obviously exclude the elderly and infants. Other than that, Bitcoin scalability issues are well known just like the ways to solve them, so it is not so much scalability issues themselves as miners hindering further Bitcoin improvement in this direction. For example, Lightning Network would make such issues virtually non-existent (as well as solve a whole bunch of other problems, e.g. lack of a decentralized exchange)

[AliceWonderMiscreations]

If it was an option in your country, would you pay your taxes with Bitcoin?

Or would that not make any sense to you at all, especially if you hold BTC as an asset whose value you hope to see increasing over time...?

I personally pay my taxes with EUR and will probably continue to do so even if I can pay with BTC

I would not pay my taxes in any currency that was not the official currency of the government entity I owed taxes to.

Sales tax, well there I would pay in bitcoin if I was buying in bitcoin.

But I mean tax on my income that I am required to pay at the federal, state, and local level. That I will always pay in the currency officially used by that government entity for business.

[roadbits]

I would pay the taxes, but as long as it's within acceptable range and only charge taxes likes what they usually do with fiat such as charging taxes when we got salary, spend on shop or buy expensive goods.
But, i'm sure government would find a way to keep taxing bitcoiner (in case bitcoin is legal in that country and accepted by many shops) by ask the shops/services to include tax in final/total payment when user pay in bitcoin

If the Bitcoin is legal means the government may do like this, But how the government will collect exact tax amount. Suppose if one shop accepts bitcoin and as per govt condition they will collect tax from customer. The shop owner will pay tax to govt at year end. This is the process. But in this process, the govt will never get exact tax from shop owners because of BTC price flactuation. Is this process will work out in the real world?

[mmo_online_1981]

I think it is important that the government does not manage BTC transactions, but if they accept it

[webtricks]

I think it would be good. If government accept Bitcoin then it will able to collect funds in Bitcoin too which again strenghten country position. As it will propagates Bitcoin use around country. When use increases, price of Bitcoin increases. Thus, reserve of country increases making it richer. It would be good from country point of view but at personal level it will bring negative results!

[Sled]

Accepting bitcoin and making it as a payment option especially in paying taxes is a kind of test that they can launched so they will see if bitcoin will good for their country or not. If governments makes bitcoin as an option when doing payments then that is a  sign that bitcoin is accepted by the government and that kind of payment system for your taxes will be the answer if they will pursue fully accepting bitcoin or nah.

[cryp24x]

I do think that it won't matter if the government let people pay taxes in Bitcoin just as long as they do not regulate Bitcoin and implementing tax on every transaction.  Government accepting Bitcoin as payment will make Bitcoin stronger in the eyes of the investor because it simply means they acknowledge it as a currency.

[coolcoinz]

They should, but they won't. Countries accept tax payments only in their own currency, unless there's something that I'm missing.
If large EU countries, those which haven't accepted Euro yet, don't allow their citizens to pay taxes in Euro, they won't do an exception for Bitcoin. Think how many people would are using Euro every day and would like to use it to pay their taxes instead of their local currency and how many would like to do it in Bitcoin. There's simply not enough pressure from the people.

[bettercrypto]

They should, but they won't. Countries accept tax payments only in their own currency, unless there's something that I'm missing.
If large EU countries, those which haven't accepted Euro yet, don't allow their citizens to pay taxes in Euro, they won't do an exception for Bitcoin. Think how many people would are using Euro every day and would like to use it to pay their taxes instead of their local currency and how many would like to do it in Bitcoin. There's simply not enough pressure from the people.

The idea of government accepting Bitcoin as form of currency is great but as you said it is quite impossible since governmen accept their own currency as a default.  But if ever government acknowledge Bitcoin as an alternative, I do not  think that there will be  something that will stop them from accepting Bitcoin as form of payment for the tax, they just need to convert them to fiat currency.

[bravehearth0319]

If it was an option in your country, would you pay your taxes with Bitcoin?

Or would that not make any sense to you at all, especially if you hold BTC as an asset whose value you hope to see increasing over time...?

I personally pay my taxes with EUR and will probably continue to do so even if I can pay with BTC

We had our own belief and understanding in terms of this matter and I respect others belief here.
For me in my side I cannot volunteer myself my to give any taxes in the government. If they really want to adopt bitcoin in each country they should not control it, because we knew what bitcoin really is isn't, according to its features of decentralization, on this matter we shouldn't forget this thing.

[squatz1]

I would pay the taxes, but as long as it's within acceptable range and only charge taxes likes what they usually do with fiat such as charging taxes when we got salary, spend on shop or buy expensive goods.
But, i'm sure government would find a way to keep taxing bitcoiner (in case bitcoin is legal in that country and accepted by many shops) by ask the shops/services to include tax in final/total payment when user pay in bitcoin

Governments are going to find ways to track people if it means some sort of money is involved for them, if theres no money that they're going to be able to pry from you, you're not even worth any sort of tracking on.

If it came to the point where the government couldn't regulate Bitcoin into oblivion in order to easily gain their money in their own controlled and centralized fiat currency, and the ONLY way they'd be able to make money off of taxes was with bitcoin, they'd adapt to survive.

It's simple, they will do what they need to in order to keep their KRUPT machine rolling. Use bitcoin or not, they're not going to be supporting the cause in the least.

[soul-impact]

They should, but they won't. Countries accept tax payments only in their own currency, unless there's something that I'm missing.
If large EU countries, those which haven't accepted Euro yet, don't allow their citizens to pay taxes in Euro, they won't do an exception for Bitcoin. Think how many people would are using Euro every day and would like to use it to pay their taxes instead of their local currency and how many would like to do it in Bitcoin. There's simply not enough pressure from the people.

The idea of government accepting Bitcoin as form of currency is great but as you said it is quite impossible since governmen accept their own currency as a default.  But if ever government acknowledge Bitcoin as an alternative, I do not  think that there will be  something that will stop them from accepting Bitcoin as form of payment for the tax, they just need to convert them to fiat currency.

bitcoin can not be accepted by the government but I do think that the government will accept bitcoin as taxes. It is faster and convenient for citizens to pay and transfer taxes immediately to the authority. And it is certain that no government will accept Bitcoin as the optional currency since it will destroy the traditional currency and knock down the whole centralized system

[Ameri_coin]

IMO, Bitcoin and governments should not mix.
Bitcoin should be a anonymous decentralised currency but that has failed due to government involvement.

[paul gatt]

I think I will not make any taxes on it, we are ordinary people, we use a small bitcoin, so we do not have to pay any taxes. Although my country accepts bitcoin, and gives it a tax rate, we also do not agree, new businesses are those who are obliged to pay taxes, because they do business, they profit from It, we only use it as a means of reserve money.

[terrate]

No. Government should not allow ppl pay tax in bitcoin.

For government, it will add risk to country as tax is one of the main revenue of country.
If just a little of ppl pay via btc no issue, but if a lot...
One hacking can affect stock too...

For people, pay tax via bitcoin will disclose your information.
No good for u if country know your asset.
 

[phr0stbyt3]

I dont think so that people would pay their taxes on bitcoin since most of users of it do really save up bitcoin and they dont like to use it at all because we do know the value of it does really increase overtime and i dont think that government would allow this thing because for sure they will collect fixed rates which they could able to get on local fiat.

I kind of agree with the people's part but why wouldn't government except even though there is a really less chance of price going down so it would basically be loss for the people as government can easily say that they charged you the price  at the time of the transaction so increase isn't there fault

[Monnt]

I think it is important that the government does not manage BTC transactions, but if they accept it

I will complete what probably you wanted to say. If they control the transaction, that's impossible first of all as it is decentralized and in case somehow they take the control over bitcoins then it makes bitcoins as centralized, which then makes bitcoins as another ordinary asset or currency.

[Kimi80]

IMO, Bitcoin and governments should not mix.
Bitcoin should be a anonymous decentralised currency but that has failed due to government involvement.

We shouldn`t mix them, that is ok by me, only thing that bothers me is freedom of choice, let the people pay with what ever they have valuable. Government and bank sectors are closely linked, they protect established system cause they have huge profit each day from that. Look at their paychecks, headquarters, and life style of the bank owners and shareholders and we see why they don`t want anything to disturb them. Bitcoin can be dangerous for them, and they don`t wish to give us to use bitcoin cause of all that.