US to remove taxes on bitcoin! more bitcoin=currency stuff

[pooya87]

the news is 10 days old but i have not seen it here so far, so here is goes:

finally US is catching up to the world!
in Tax Fairness Act of 2017 it proposes that customers do not need to report transactions less than $600 worth. this is great but it is while Japan and Australia have completely removed taxes from any bitcoin transaction no matter the size.

#baby_steps

“Cryptocurrencies can be used for anything from buying a cup of coffee to paying for a car, to crowdfunding a new startup and more and more consumers are choosing to use this type of payment.  To keep up with modern technology, we need to remove outdated restrictions on cryptocurrencies, like Bitcoin, and other methods of digital payment,” said Polis.  “By cutting red tape and eliminating onerous reporting requirements, it will allow cryptocurrencies to further benefit consumers and help create good jobs.”

“Individuals all over the world are starting to use cryptocurrencies for small every day transactions, yet here in the States we have fallen behind and make cryptocurrency use more of a challenge than it needs to be,” said Schweikert.  “With this simple legislative change, anyone can make digital payments to buy a newspaper or a bike without worrying about tax code challenges.”

“While Bitcoin and other cryptocurrencies are technologically innovative payment methods, today you have to keep track of and report every transaction you make using them, whether it’s a $10,000 investment trade or whether you’re buying a 99¢ song online or a latte at a café. This obviously creates friction and puts cryptocurrencies at a disadvantage relative to other digital payment methods,” said Jerry Brito, Executive Director of cryptocurrency think tank Coin Center. “We applaud Representatives Polis and Schweikert for their leadership in introducing the Cryptocurrency Tax Fairness Act, which would treat cryptocurrencies similarly to how foreign currency is now treated and relieve users from having to keep track of small personal transactions. Not only will this create a level playing field for digital currencies, it will also help unleash innovation on applications like micropayments, which can consist of dozens of transactions per minute and thus are difficult to square with the current law.”

[1713993043]

1713993043

[1713993043]

1713993043

[1713993043]

1713993043

[Karpeles]

What is the source?

Where are the official statements?

[pooya87]

What is the source?

Where are the official statements?

https://polis.house.gov/news/documentsingle.aspx?DocumentID=398438
a proposal for Creating tax parity for cryptocurrencies to United States congress by Jared Polis Representatives for Colorado's 2nd congressional district

[StockBet.com]

Good find.

[LeGaulois]

Useless since none of the American citizens is paying taxes. Last week I saw a title of an article saying only 82 citizens pay the taxes on Bitcoin following a report from the IRS. Such new is not going to motivate more people to use Bitcoin, they just don't care about it, it's not going to change anything for them

[lucifochrome]

Nice! Now this right here is an improvement. Removing taxes on bitcoin will now attract more investors or traders, i do not know the exact number but i think there is not much people who know bitcoin in the US and any part of the world. I just hope that with this move of the government removing taxes will also make way in marketing bitcoin or something just so that people will know more of bitcoin and there will be a lot who will be interested. Now, if this move will be successful other countries may follow although with the government removing taxes it will always have its pros and cons. As such that it will be used with illegal activities but well it is already been used in the blackmarket anyway, what i am just saying is that many people (righteous ones) will be driven away because of this. Like from where i'm at. Someone was interviewed on the news about bitcoin not sure if he's an analyst or an economist. He was asked about his thoughts on bitcoin as in the past couple of months there was a hype about it and guess what this analyst said, he stated that people should stay away from bitcoin as it is a scam. I just cant believe he said that. I Anyway this is still good news and lets hope that it attracts people to it so price will rise up.

[HashFace]

It should be note that this is just a proposal floated by two congressmen.  Congressmen float proposals all the time, and the vast majority of them die without even getting to a vote.  It would have to survive committees, get attached to a bill, and be voted in by the house and senate, then signed by Trump.  And of course, bitcoin doesn't have a "lobby", but the banks do.

It is however promising that this blockchain proposal is sponsored by both a Republican and a Democrat.  Bi-partisan bills have a much better chance of surviving.

[fossilized]

Unlikely to be implemented if you ask me. Capital gains are taxed in the US and I do not see why they would find bitcoin capital gains any different from other investment vehicles; in fact it will be very unfair that bitcoin as an asset class does not get taxed. One of the disadvantages of being subjected to US law I suppose. Mind you not all countries have a tax on capital gains, for example Singapore has no capital gains tax no matter what asset class. It just depends on how "friendly" a country want to be with regards to investments.

[BrewMaster]

somebody needs to call James Dimon (the JP Morgan CEO) and tell him that his country's congress is going to remove taxes on a "fraud" LOL.
and while you are at it call IRS and tell them they have been taking taxes on a "fraud" too.

oh wait, he is busy buying bitcoin he is not answering any calls.

[joseafonso123az]

If implemented, a somewhat good decision by a powerful country as it is USA. This will perhaps make prople start looking more to bitcoin, thus increasing bitcoin users and increasing it's value. Even this doesn't happen, well, we can say it will continue to have good effects in the crypto market, because it makes cryptos become more known, and also tells indirectly that even more and more countries are getting attracted by these

[Kprawn]

This is kinda shitty. If they did the same with other commodities, people would have taken to the street. Imagine if someone

told you that you not allowed to invest more than $600 in gold, would you have listened to them? Governments should just

regulate Bitcoin like any other commodity to be fair to all. 

[sakkosekk]

How glad it is with this good news for bitcoin
I believe bitcoin will continue to grow and thrive
It will replace the traditional currency

[veganBBQsauce]

Even if it seems to not matter at the moment, seeing as no one pays their taxes anyway, this kind of evolution towards a more reasonable tax policy is much needed. Bitcoin and crypto can't be treated as something they're not, and so more laws that are unique and tailored is exactly what we need.

[szpalata]

somebody needs to call James Dimon (the JP Morgan CEO) and tell him that his country's congress is going to remove taxes on a "fraud" LOL.
and while you are at it call IRS and tell them they have been taking taxes on a "fraud" too.

oh wait, he is busy buying bitcoin he is not answering any calls.

Last time I checked he was busily investing in "fraud" and hoping to profit when the "fraud" grows in value. It's a pity we have such characters in positions of influence yet they don't influence our world positively.

It sounds good for the US government to remove taxes from Bitcoin but I'm not totally convinced because they could have ulterior motives which when executed could lead Bitcoin into a ditch and they'd have a sort of central control. These are just speculations but the US government always puts his interest ahead

[pooya87]

This is kinda shitty. If they did the same with other commodities, people would have taken to the street. Imagine if someone

told you that you not allowed to invest more than $600 in gold, would you have listened to them? Governments should just

regulate Bitcoin like any other commodity to be fair to all. 

no, it is not about how much you invest in bitcoin and not restrict it at all. you can still invest 10 trillion dollar in it
it is mostly about spending bitcoin. for example if you spend $100 to buy something from Amazon with bitcoin right now a good little obedient citizen has to fill the tax report and report that. but with the new bill you won't need to do that and it will be legal.

[Granxis]

I have not heard such a news, the US has been very clever, if they were behaviors like China, they would see too much reaction, Us and China can never be compared.

[jekjekman]

the news is 10 days old but i have not seen it here so far, so here is goes:

finally US is catching up to the world!
in Tax Fairness Act of 2017 it proposes that customers do not need to report transactions less than $600 worth. this is great but it is while Japan and Australia have completely removed taxes from any bitcoin transaction no matter the size.

#baby_steps

“Cryptocurrencies can be used for anything from buying a cup of coffee to paying for a car, to crowdfunding a new startup and more and more consumers are choosing to use this type of payment.  To keep up with modern technology, we need to remove outdated restrictions on cryptocurrencies, like Bitcoin, and other methods of digital payment,” said Polis.  “By cutting red tape and eliminating onerous reporting requirements, it will allow cryptocurrencies to further benefit consumers and help create good jobs.”

“Individuals all over the world are starting to use cryptocurrencies for small every day transactions, yet here in the States we have fallen behind and make cryptocurrency use more of a challenge than it needs to be,” said Schweikert.  “With this simple legislative change, anyone can make digital payments to buy a newspaper or a bike without worrying about tax code challenges.”

“While Bitcoin and other cryptocurrencies are technologically innovative payment methods, today you have to keep track of and report every transaction you make using them, whether it’s a $10,000 investment trade or whether you’re buying a 99¢ song online or a latte at a café. This obviously creates friction and puts cryptocurrencies at a disadvantage relative to other digital payment methods,” said Jerry Brito, Executive Director of cryptocurrency think tank Coin Center. “We applaud Representatives Polis and Schweikert for their leadership in introducing the Cryptocurrency Tax Fairness Act, which would treat cryptocurrencies similarly to how foreign currency is now treated and relieve users from having to keep track of small personal transactions. Not only will this create a level playing field for digital currencies, it will also help unleash innovation on applications like micropayments, which can consist of dozens of transactions per minute and thus are difficult to square with the current law.”

If this news is really true then it is so good news with the Bitcoin community as one of the strongest economy in the world is supporting Bitcoin as a payment to any kind of small things that you can bought online. How I wish that China will do this also.

It seems that USA is really supporting Bitcoin because they are seeing the future of digital currency so if they will hinder it they will lose in the long run. The move of one country will impact to other countries so let's hope for the best for the future of cryptocurrencies.

[Merovius]

This should be a good thing if the bill eventually passes. I did not realize this previously, but apparently back in 2014 the IRS made a ruling that considered cryptocurrencies a kind of property that triggers a capital gains tax requirement on any sale or exchange that technically results in a USD profit for the BTC holder. This can get quite ridiculous for small transactions where a person buys a small amount of bitcoin to make a purchase, after which it is quickly sold so that the seller of the product can keep records and revenues in USD. Having to report capital gains taxes on each such transaction would get quite tedious and cumbersome, so this bill would streamline things and only impose the reporting requirement for cryptocurrency transactions larger than $600. I found two other articles that mention the bill and discuss this issue:

https://tomluongo.me/2017/09/08/tax-exemption-for-bitcoin-purchases/

https://www.coindesk.com/us-lawmakers-seek-tax-exemption-bitcoin-transactions-600/

Apparently Congress has already passed such a de minimis exemption for foreign currencies like EUR, GBP, etc. that covers small transactions where short term currency conversions must be made. This is good because it creates a legal precedent for this bill and perhaps gives it a better chance of passing.

[DeathAngel]

It says you don't have to pay taxes on or report transactions for less than $600. So effectively you will be paying taxes if you sell your bitcoin's unless they're allowing you to sell at multiple lots of $599 ;
I don't think you'd get away with that though?

[zmhtech]

I hope this does get implemented so in the future we dont have to pay taxes on our bitcoin if we sell