TAXES (in the USA)

Having spent a fair amount of time chatting and reading in the #bitcoin, #bitcoin-otc and #bitcoin-pricetalk channels on IRC Freenode, I think it is fair to say, that a large proportion of bitcoiners hate paying taxes, feel that the US Federal Reserve is a private company independent of the US Government, that the IRS and federal income taxes is illegal or unconstitutional, and that bitcoin is the way to avoid all government scrutiny.

I have read their arguments and think their ideas are completely without merit. Sure, no one likes to pay taxes. But, my tax money, (and that of all Americans) finances DARPA and DARPA helped build the Internet. I am happy to pay taxes to build and maintain roads, schools, and civil regulatory bodies. Sure, there are some regulations that are overly restrictive and arbitrary, on the other hand, I am quite happy that the FAA keeps the skies safe, for example. I wish there was more banking regulation, not less. I believe there should be no helmet laws for motorcyclists, yet I always would wear a helmet in the days that I rode. Not an inconsistency, but a recognition that in certain areas, freedom is important, but not foolish decision. We each have personal responsibility for our own choices when able to make those choices freely.

By the way, I do pay my taxes.

I love bitcoin because it is both wild and unregulated and is distributed and decentralized. I have some money in a big, nation wide bank, and money in smaller banks. I support both bitcoin and multinational banks and credit unions. Yes, unlike so many bitcoiners, I have no intention to use bitcoin to avoid paying taxes or hiding money. On the other hand, I just wish the US tax system was simpler. Why can't tax forms be easy? Instead of all the regulations, instead of all the variations, loopholes, political accommodations, make it easy:

Line one: How much did you make last year in both salary and capital gains and other profits? _____
Line two: What is 15% of the amount in line one?_______

Please pay the amount calculated on line two.

That is all there needs to be.

Maybe the percentage rate should be higher or lower. But, it really could be that simple.
Of course, it would mean that tax lawyers, tax accountants, certain lobbyists, tax preparers would all be out of business.

I like elegance and simplicity. Perhaps that is part of the reason I like Bitcoin . It is simple and elegant. A transaction does not require all the complexity of a bank check, credit cards, and it cuts out the fees and costs of the unnecessary intermediary (the credit card companies).

Widespread adoption would make some people rich and cost others money. Just like a simple US tax system, which would eliminate those jobs which depend on the complexity of the tax code to exist, if bitcoin were widely adopted, some people in the credit card industry would have to adapt, adopt or find other professions.