Let's suppose that Bitcoin became universal (used everywhere you go)

[arpon11]

Hi,
Let's suppose that Bitcoin became adopted everywhere such as paying bills with Bitcoin,getting salary with Bitcoin,shopping,restaurant etc...
How your country gonna survive if you only use Bitcoin in a daily basis? I mean a country cannot survive if individuals doesn't pay taxes,well with Bitcoin you don't pay any tax right?
How this gonna be possible? Please shed for me some light on this.
Thanks

Bitcoin earning can be taxable and you are not going to have much problems outside availability of internet for day to transactions.  I think our governments incurred Alot of cost by investing into the products of fiat money and bitcoin can eliminate such cost. 

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[Todychopper77]

I agree, if universal then all is easy to do to buy anything, and everything becomes easier, I support it when it happens

[Max.junior1]

Hi,
Let's suppose that Bitcoin became adopted everywhere such as paying bills with Bitcoin,getting salary with Bitcoin,shopping,restaurant etc...
How your country gonna survive if you only use Bitcoin in a daily basis? I mean a country cannot survive if individuals doesn't pay taxes,well with Bitcoin you don't pay any tax right?
How this gonna be possible? Please shed for me some light on this.
Thanks

This is fine if every country accepts bitcoin as a method of payment. Maybe people can use bitcoin for their daily needs, and I think it's a very beautiful atmosphere. But in fact, Not all Countries accept bitcoin as a currency.

[jaysabi]

Hi,
Let's suppose that Bitcoin became adopted everywhere such as paying bills with Bitcoin,getting salary with Bitcoin,shopping,restaurant etc...
How your country gonna survive if you only use Bitcoin in a daily basis? I mean a country cannot survive if individuals doesn't pay taxes,well with Bitcoin you don't pay any tax right?
How this gonna be possible? Please shed for me some light on this.
Thanks

Essentially, if everything is denominated in Bitcoin there would be no change to how taxes work. When you pay income tax, your employer would still be required to withhold all the applicable taxes and pay them to the state and national government, and at the end of the year you would still be required to file taxes and pay whatever shortcomings you owe or file for your overpayment refund. When buying things, sales taxes would still be charged by the business and you would still pay the sales tax, which the business would then be responsible for forwarding to the government. In short, there's absolutely no reason to think or expect that switching to a fully Bitcoin-denominated economy would result in any changes to the tax system whatsoever.

[carlisle1]

It will be great for us, we can easily buy everything and we can used btc in any countries, but it won't be too good for the country, the government need to arrange well so there is no tax evasion, and it also need to be controlled so crypto usage cant caused another inflation to the country, the best way to settle this one is to set up regulations

Right about this,the tax evading will break this all if we dont help the government about this,this is a breakthrough if we can use this great coin for all aspects and this a gift from satoshi nakamoto.

And since japan has been doing this and look at them,one of the most highest respected country and highest technology,so what will be all the countries if this become reality..

[nydiacaskey01]

Hi,
Let's suppose that Bitcoin became adopted everywhere such as paying bills with Bitcoin,getting salary with Bitcoin,shopping,restaurant etc...
How your country gonna survive if you only use Bitcoin in a daily basis? I mean a country cannot survive if individuals doesn't pay taxes,well with Bitcoin you don't pay any tax right?
How this gonna be possible? Please shed for me some light on this.
Thanks

That's why the government is trying their best to regulate Bitcoin since they cant put a stop on using this. They (government) will still have a slice of the pie because local exchanger's like what we have in my country have to go through the Central Bank before they can start operations and I don't think the government will not settle for just a plain registration without earning a revenue.

[Virtual miner]

No, it will not happen that way. Obviously the government is not so stupid to let this happen. It will do something or make such regulatory framework for ensuring timely tax compliance by all, like it may ask you to show your returns, I mean they will make sure how they want to get taxes out of the public. Don’t worry about them. They are not going to introduce cryptos without regulations.

[bering]

there is no such thing that if people use bitcoin then people won't pay tax so i think country will not survive without tax because tax is their main source income to build some facilities to their citizen and government will avoid use bitcoin as the currency because it's risky and too volatilities

[aoluain]

Hi,
Let's suppose that Bitcoin became adopted everywhere such as paying bills with Bitcoin,getting salary with Bitcoin,shopping,restaurant etc...
How your country gonna survive if you only use Bitcoin in a daily basis? I mean a country cannot survive if individuals doesn't pay taxes,well with Bitcoin you don't pay any tax right?
How this gonna be possible? Please shed for me some light on this.
Thanks

You made my day...
Bitcoin just broke whole goverment yeah? Because they can't tax businesses which use bitcoin? Cmon man, if things would be like that, believe me, bitcoin could be more widely used than fiat because no one likes paying taxes and while people do dirty job in order to hide incomes, if there was bitcoin as a legal way, business owners would make you to turn into bitcoin in any way for their sake.

It's hypothetical.I didn't say that Bitcoin broke governments (not yet at least).I'm talking about the futur of Bitcoin and yeah no one likes to pay taxes but your country cannot guarantee it's survival if people don't pay taxes and alot of people use Bitcoin as a way to evade paying taxes.

Well, taxes also don't automatically get removed from your bank account either...
It would be the same if Bitcoin became universally used. Governments would just accept payment in Bitcoin, but you would be responsible for making those payments and reporting your income etc.

Also, isn't it nice that they have this big ledger (blockchain) to see what kind of income you have received.

I agree with you but escape taxes is easier through Bitcoin since it's pseudo-anonymous while you can't escape that long with traditional system since the government can check your real income if somehow you didn't report it.

Hi,
Let's suppose that Bitcoin became adopted everywhere such as paying bills with Bitcoin,getting salary with Bitcoin,shopping,restaurant etc...
How your country gonna survive if you only use Bitcoin in a daily basis? I mean a country cannot survive if individuals doesn't pay taxes,well with Bitcoin you don't pay any tax right?
How this gonna be possible? Please shed for me some light on this.
Thanks

 Wrong.  If you pay with Bitcoin at a business, the business will collect the tax owing on your purchase (it will be part of the total price).  If you get Bitcoin as income, generally the company you work for will remit the taxes to the gov't.  If you don't pay your property tax, your property will be confiscated and sold for taxes owing.  You don't have to worry about governments; they'll get their money out of you one way or another.

 

Yes,but you forget that when you buy something the government get money through VAT and not only from the company you've purchased from.
In addition to that,governments won't be able to tax direct payment between individuals.

 I didn't forget the VAT, that's the tax I'm referring to in red above.  It's not called VAT in every country.  We call it sales tax in North America and it can be federal, provincial/state, county, city or some combination of those imposed.

Yeah but still,if Bitcoin becomes universal taxes would be harder to manage by governments.

EDIT:Guys don't judge me too hard,we're just discussing.

No worries, we are just discussing.
If you go to the shop and buy beer for example, there is 1 transaction,
You are paying for the goods including sales tax, value added tax or
whatever it is called in a perticular country.

If i sell you a camera, that is between 2 individuals face to face and
there is no way it is taxed now with FIAT so the same would apply
with bitcoin.

As an employee my employer deducts the relevant taxes before i get
what is left.

You have to look at employers and merchants, for example store owners
as tax collectors for the government, that applies to now with fiat and
potentially with bitcoin.

[omfg.xekcep]

Well, and what is a problem? People pay taxes for any activities which imposed taxes you may ask an accountant and he will explain you how it works. Let us suppose that I need to do any work and I hire you to do this work and after that I pay you some money (cash) and neither you nor me pay taxes and it does not mean that dollar is bad I mean that taxes not apply to a currency.

[andriarto]

in my country prohibit bitcoin for transactions, means of bitcoin is absolutely not taxed. but after we redeem bitcoin into fiat currency then the tax office has started looking for your income tax

[Activitycoin]

Hi,
Let's suppose that Bitcoin became adopted everywhere such as paying bills with Bitcoin,getting salary with Bitcoin,shopping,restaurant etc...
How your country gonna survive if you only use Bitcoin in a daily basis? I mean a country cannot survive if individuals doesn't pay taxes,well with Bitcoin you don't pay any tax right?
How this gonna be possible? Please shed for me some light on this.
Thanks

This is fine if every country accepts bitcoin as a method of payment. Maybe people can use bitcoin for their daily needs, and I think it's a very beautiful atmosphere. But in fact, Not all Countries accept bitcoin as a currency.

Bitcoin is being use as way of life and bitcoin has ability to change our life, crypto currency way of payment is the most; liked one now a day, it is easy to buy goods of our daily needs using bitcoin, it saves our time and it gives us safety as well, now many people are able to pay bills and school fees for kids even if they are at world so it is all possible only because of bitcoin.

[hatshepsut93]

There are many ways to collect taxes, things like VAT can be installed on the side of merchants, social security taxes can be collected by employers and so on, so you don't have to have every single citizen under control to collect taxes. In some cases Bitcoin will make taxation harder, but it won't bring an end to it, especially now that the privacy is pretty weak, so officials would be able to track many users. But this question is way too theoretical, Bitcoin will never fully replace fiat, in fact it will probably will make up for 5-10% of economy at best, but it will be fine, it's important to just have an alternative to fiat and banks, the people will have to decide for themselves what they want to use.

[carlozharz]

I think the government will manage taxes for all transactions using Bitcoin, blockchain technology is very helpful to the government to check all user wallets / accounts, I think it is very difficult to escape from observation because blockchain technology is transparent.

[sharm2121]

I understand this as a concern, and this is why some countries still forbid crypto.
The government is afraid of losing taxes, maybe one day bitcoin and alt coin holders have to pay taxes.

 I agree with you, government are afraid of cryptocurrency because we are not paying taxes. So if the government will legalized the crypto in our country for sure they will also put taxes to a coin holder so that they have money to corrupt, how sad that they are many selfish people just to have money

[andriw]

if bitcoin becomes universal, then all incoming transactions from and to your account will be taxed, because the rules will be equated with fiat rules.
and possibly a bitcoin account is no longer anonymous, in respect of taxes, any form of bitcoin account creation must enclose a national ID or other recognized ID in the country.
and if the address of our bitcoin account is publicly known, it is very easy for the public to know the flow of our funds

[icecube45]

If bitcoin is already used like to pay utility bills, salary, shopping, etc. in daily life there will be tax for the country. Like my country is obliged to pay taxes per cent every time making payments with bitcoin, and this will go into the state revenue. If you see more and more people adopted bitcoin, of course, require paying taxes every payment with bitcoin will make the country get a profit, its potential is very high. So surely there will be a tax for the use of bitcoin.

[neliawesome]

Even if bitcoin will be used in all transactions, there should be a tax.It will never happened that there is no tax collected.Tax is very important for the goodness of the country and for the people.So if bitcoin will be universal for sure in every transactions made there should be a tax collected.

[batang_bitcoin]

The establishments and service they offer are taxable. Here in my country every goods you buy are taxable already so as a consumer you shoulder the tax. A country will most likely to be manipulated if it will depend fully to bitcoin. And its impossible to educate all the citizens about bitcoin, some will choose the traditional currency.

[frowsiter]

Hi,
Let's suppose that Bitcoin became adopted everywhere such as paying bills with Bitcoin,getting salary with Bitcoin,shopping,restaurant etc...
How your country gonna survive if you only use Bitcoin in a daily basis? I mean a country cannot survive if individuals doesn't pay taxes,well with Bitcoin you don't pay any tax right?
How this gonna be possible? Please shed for me some light on this.
Thanks

Actually if you start using it everywhere then you will simply have to pay the taxes. Because whenever you will pay your bills in the hotels, pub, club, healthcare or basically anywhere then obviously those services will get taxes from you in the form of VAT, GST, IGST etc as they have to pay it to the government for running the business they have.

Ultimate you are already paying tax and when it will come down to your individual tax at the financial year end then you will have to show up all those bills and thus its ultimate your fault if you dont pay tax.

So it doesnt matter if you pay with BTC, or any other crypto or Fiat itself.