Bitcoin & Taxes

[Kakmakr]

Watched a Netflix documentary this weekend, called "Saving Capitalism" and I saw this :

US government gives Tax subsidies to big Corporations :

~ $4 Billion Dollars - Big Oil companies
~ $632 Million Dollars - Google < To subsidize Data centres >
~ $20 Billion Dollars - Largest Producers

Surely this would be as a incentive to create job opportunities and for these companies to thrive. If they were taxed to death, they would have relocated to other countries.

Now I was thinking, Bitcoin also create job opportunities and it also generate tax income through innovation and tourism. Why not ask for tax subsidies for companies that wants to create mining farms or manufacture mining hardware?

Edit : Some tax incentive for Bitcoin users, might also help. The governments have no expenses to print cash for Bitcoin transactions.   We are saving them money, because we use less cash. < I presume Credit Card companies are getting some tax incentives too, and we know Banks are getting Bailouts >

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[jseverson]

Bitcoin Companies are mostly exchanges, and with every country having anti money laundering laws of sorts, it would be far more complicated for them to operate overseas. They're in no position to leverage for tax subsidies. Exchanges are on shaky enough grounds as is.

I don't think they'll be at all motivated for tax incentives for private citizens either. I'm sure they would much rather their citizens use their own currency, because there's this issue of Bitcoin being uncontrollable.

Either way, in my opinion, Bitcoin companies are still pretty much nothing in the grand scheme of things for governments to play nice with them. We'll have to wait and see how the industry evolves.

[aleksej996]

It is just corruption my friend. We are here to put a stop to that, not try to be part of the problem.
Tax cuts for creation of jobs is a ridiculous argument, there are always jobs, everywhere. If nothing we have a problem of not enough workers. How can it be natural that free time is a problem, you can always do something productive? The point is that instead of giving companies tax cuts to bring good jobs faster, you can give the same tax cuts to people and let them earn a bigger percent of their money.

It is funny to think that governments would save money by promoting Bitcoin, people would save money, but not the government.
Government controls fiat, they can and do print money. If they need to take money from people, they just do. Make the inflation that makes people's money less worth so that the government has more money to give for bank bailouts, they call this quantitative easing, which is a very nice way of saying that they simply give people's money to banks, there really isn't anything more to that. This is when Bitcoin was created and what it refers to in the first block. This is why Bitcoin exists.

[BillCoin]

Watched a Netflix documentary this weekend, called "Saving Capitalism" and I saw this :

US government gives Tax subsidies to big Corporations :

~ $4 Billion Dollars - Big Oil companies
~ $632 Million Dollars - Google < To subsidize Data centres >
~ $20 Billion Dollars - Largest Producers

Surely this would be as a incentive to create job opportunities and for these companies to thrive. If they were taxed to death, they would have relocated to other countries.

Now I was thinking, Bitcoin also create job opportunities and it also generate tax income through innovation and tourism. Why not ask for tax subsidies for companies that wants to create mining farms or manufacture mining hardware?

Edit : Some tax incentive for Bitcoin users, might also help. The governments have no expenses to print cash for Bitcoin transactions.   We are saving them money, because we use less cash. < I presume Credit Card companies are getting some tax incentives too, and we know Banks are getting Bailouts >

I liked your idea.
We are saving money to the governments by NOT doing cash transactions, it could be true, but the governments are printing money not because we use it, they print money because they need to pay debts with that money.
They print money because they need money, not because they want to make our cash system better, and that's the main reason of hyper inflation, when they are in huge debts, and they need to print huge amount of money, which make your money worthless.

[TheQuin]

It's a nice idea but I don't think it's likely to happen anytime soon. Governments are still viewing cryptocurrencies as a threat and are unlikely to want to subsidise them given that. Sure in the future if there are major corporations in the cryptocurrency space then governments will compete with each other with tax incentives to lure them. Those subsidies are only given because the tax take is positive overall and those companies are large enough to be worth incentivising.

[shawn995]

It's a nice idea but I don't think it's likely to happen anytime soon. Governments are still viewing cryptocurrencies as a threat and are unlikely to want to subsidise them given that. Sure in the future if there are major corporations in the cryptocurrency space then governments will compete with each other with tax incentives to lure them. Those subsidies are only given because the tax take is positive overall and those companies are large enough to be worth incentivising.

Bitcoin is the best way to save your income from the the government, because in fiat currencies our high amount is deducted in the forum of the taxes. While in bitcoin if you hold OR invest bitcoin you have not pay any tax while for the transfer of the bitcoin you need only a very small tax to pay. the trade in bitcoin is also free of the tax so bitcoin is better to save your money from tax

[squatz1]

Well, that's the thing, while Bitcoin does create jobs and innovation within Crypto it does then go ahead and steal massive amounts of jobs from companies that rely on the massive infrastructure behind centralized banking. So you're going to be stealing jobs from people that work for banks, work for governments (treasury), and so on and so forth. So the thing here is that government is never going to back Bitcoin, as not only is it going to make them give up some of their power -- it's also going to make some of their voters lose workers which is never something that voters want.

So your idea on this is a bit wrong.

[kueyen]

The sectors being referenced in the original post are all so huge that the tax subsidies for large companies in these sectors can be justified. Can you say that about bitcoin? The market value is not close to those of the big companies, governments are not decided yet about how to approach bitcoin (is it a scam or is it legit?). As such, being granted legitimacy and legality is all the cryptocurrency sector can ask for now, in my opinion.

[Kakmakr]

Watched a Netflix documentary this weekend, called "Saving Capitalism" and I saw this :

US government gives Tax subsidies to big Corporations :

~ $4 Billion Dollars - Big Oil companies
~ $632 Million Dollars - Google < To subsidize Data centres >
~ $20 Billion Dollars - Largest Producers

Surely this would be as a incentive to create job opportunities and for these companies to thrive. If they were taxed to death, they would have relocated to other countries.

Now I was thinking, Bitcoin also create job opportunities and it also generate tax income through innovation and tourism. Why not ask for tax subsidies for companies that wants to create mining farms or manufacture mining hardware?

Edit : Some tax incentive for Bitcoin users, might also help. The governments have no expenses to print cash for Bitcoin transactions.   We are saving them money, because we use less cash. < I presume Credit Card companies are getting some tax incentives too, and we know Banks are getting Bailouts >

I liked your idea.
We are saving money to the governments by NOT doing cash transactions, it could be true, but the governments are printing money not because we use it, they print money because they need to pay debts with that money.
They print money because they need money, not because they want to make our cash system better, and that's the main reason of hyper inflation, when they are in huge debts, and they need to print huge amount of money, which make your money worthless.

Well, $1 and $2 bills cost 4.9 cents per note to make, while $5 cost 10.9 cents, $10 cost 10.3 cents, both $20 and $50 bills cost 10.5 cents, and $100 bills cost 12.3 cents. It costs 36 cents to make a dollar's worth of quarters, and 40 cents for a buck of dimes.

So no matter why they print and mint money, we still save them some cost in the manufacturing of that money. Most of the world wants to go cash-less in any way, why not go Bitcoin. ^smile^

[Wind_FURY]

OP, since when did the government think positively about Bitcoin? Bitcoin and altcoins are a threat on their control over the financial system. So why would they give Bitcoin companies any tax breaks? I believe they should make them higher.

[Kakmakr]

OP, since when did the government think positively about Bitcoin? Bitcoin and altcoins are a threat on their control over the financial system. So why would they give Bitcoin companies any tax breaks? I believe they should make them higher.

Not all governments are negative towards Crypto currencies. If you’ve ever wondered just how much currency is traded on average each and every day, then consider this : HSBC, citing data from the Bank of International Settlements (BIS), that $5,100,000,000,000 is traded every day. That’s 5.1 trillion.

Imagine, if that can be done via Bitcoin. <Once scaling issues has been solved>  ^smile^

[hujanderas]

This is a good suggestion but I do not think it will happen in a moment. The government still sees crypto as a war. Certainly in the future if there is a large company in the crypto cognitive space then competing against each other, and taxes to lure them, the subsidy is only given because the tax is accepted as a whole and the company is big enough to own.