suggestion on how to implement tax on bitcoin transactions.

[iarsenaux]

well, i think taxation plays a big role with regards to the acceptance of different governments. they don't want to legalize the use of bitcoins and they keep on  giving negative feedback to it. well my suggestion is that, what if blockchain will add a feature in which the value of a Bitcoin converted to USD(or any currency) on a given time will be indicated whenever a Bitcoin address receive Bitcoins? And aside from that, is it possible to add a brief description of a transaction? In that way, it will be easier to track the earnings of a company.

For example someone bought a video card from me and paid in bitcoins, what will appear on the transaction details on blockchain is, Transaction ID, bitcoin address of the sender and receiver, amount in bitcoins, amount in real currency and a description that says "payment for a video card"

[1714877911]

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[vleroybrown]

well, i think taxation plays a big role with regards to the acceptance of different governments. they don't want to legalize the use of bitcoins and they keep on  giving negative feedback to it. well my suggestion is that, what if blockchain will add a feature in which the value of a Bitcoin converted to USD(or any currency) on a given time will be indicated whenever a Bitcoin address receive Bitcoins? And aside from that, is it possible to add a brief description of a transaction? In that way, it will be easier to track the earnings of a company.

For example someone bought a video card from me and paid in bitcoins, what will appear on the transaction details on blockchain is, Transaction ID, bitcoin address of the sender and receiver, amount in bitcoins, amount in real currency and a description that says "payment for a video card"

You are drunk, go home..  IRS and Government can win their own fights without our help!

[CryptoREI]

well, i think taxation plays a big role with regards to the acceptance of different governments. they don't want to legalize the use of bitcoins and they keep on  giving negative feedback to it. well my suggestion is that, what if blockchain will add a feature in which the value of a Bitcoin converted to USD(or any currency) on a given time will be indicated whenever a Bitcoin address receive Bitcoins? And aside from that, is it possible to add a brief description of a transaction? In that way, it will be easier to track the earnings of a company.

For example someone bought a video card from me and paid in bitcoins, what will appear on the transaction details on blockchain is, Transaction ID, bitcoin address of the sender and receiver, amount in bitcoins, amount in real currency and a description that says "payment for a video card"

Ok why not just us fiat, if we start treating bitcoins just like it there is no point in it right 

[Rannasha]

Your proposal contains 2 components:
1) Inclusion of a fiat-equivalent in transaction details (not sure if you mean on *the* blockchain or just the blockchain.info website, which are 2 very different entities).
2) Inclusion of an (optional) message/label with a transaction.

Why these are pointless:
1) The transaction is already date/time-stamped. If someone wants to know the fiat-equivalent-value of a transaction at the time it was made, all he has to do is grab historical data on the BTC exchange-rate for his fiat-currency and multiply the exchange-rate with the BTC-amount in the transaction. This is trivial to automate.
2) Companies and individuals that want to follow local laws and pay taxes will be able to declare their Bitcoin-transactions directly to their local tax agency without the need to add labels to transactions. Companies and individuals that don't want to follow local laws or pay taxes will just leave the message field empty or enter bogus data.

Both suggestions are good examples of feature-bloat. They increase the complexity of the base system without adding any benefits that aren't just as easily obtained otherwise.

[Automatic]

1. "payment for a video card" isn't all that informative, ever thought why companies use huge invoice forms that include exact model numbers, quantities, descriptions, shipping address, etc...?
2. Adding all the above info to the blockchain will massively increase it's size, and, decrease bitcoin's anonymity (Which I guess is what you want), I actually believe the owner's of blockchain.info did this for about a week and got shit on by people, so, they changed their "note" system to a centralized database instead.
3. You can already do this if you really, really, want, simply by having a script that returns true correctly, but, leaves left over data in the stack, or, simple has data, something like this could work (I think):-
https://blockexplorer.com/tx/e746bdd987af06fa5e1463890a2a3dce996ccecaf9bed45250645b9ac0e1678c

Code:

OP_DUP OP_HASH160 79d489a25a36c8f72b493d6a0ae5a89420fb1a7a OP_EQUALVERIFY OP_CHECKSIG

Change that to something like:-

Code:

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 OP_DROP OP_DUP OP_HASH160 79d489a25a36c8f72b493d6a0ae5a89420fb1a7a OP_EQUALVERIFY OP_CHECKSIG

Adds the hex of the message, instantly drops it, then continues with the script as normal.

4. Who the fuck specifies how much it is and in what currency? That's my biggest issue.

[cr1776]

If you want to add something to the blockchain (assuming you did not mean blockchain.info since that is a web site), you are going to fork bitcoin (both the client and the protocol).  

I think that the appropriate response is:  go ahead and fork them, let us know when the changes are complete, and then you can see by the number of people who switch to this "taxcoin" alt-coin if people think it is a good idea.  Talking about the idea does little, discussions here do little, if they are not followed by implementation.

well, i think taxation plays a big role with regards to the acceptance of different governments. they don't want to legalize the use of bitcoins and they keep on  giving negative feedback to it. well my suggestion is that, what if blockchain will add a feature in which the value of a Bitcoin converted to USD(or any currency) on a given time will be indicated whenever a Bitcoin address receive Bitcoins? And aside from that, is it possible to add a brief description of a transaction? In that way, it will be easier to track the earnings of a company.

For example someone bought a video card from me and paid in bitcoins, what will appear on the transaction details on blockchain is, Transaction ID, bitcoin address of the sender and receiver, amount in bitcoins, amount in real currency and a description that says "payment for a video card"

[piotr_n]

well, i think taxation plays a big role with regards to the acceptance of different governments. they don't want to legalize the use of bitcoins and they keep on  giving negative feedback to it.

that sucks for them

[vleroybrown]

well, i think taxation plays a big role with regards to the acceptance of different governments. they don't want to legalize the use of bitcoins and they keep on  giving negative feedback to it.

that sucks for them

1+ https://www.youtube.com/watch?v=YCHKDrADKIk

[hellscabane]

Blockchain shouldn't have to do that. However, I think this idea would be nice for a separate party to add and track via a separate mechanism; after all, I could see this becoming quite cumbersome for businesses if certain tax laws are enforced in a particular manner. (Which is something to think about since the Australian Tax Office is considering taxing bitcoins for businesses that transact in bitcoins. Sure they haven't explicitly made it law, but there is no strong reason to feel like they won't.) After all, I could imagine audits becoming more of a pain in the ass than they already are if strict point of sales records are required. And that's just the tip of the iceberg.

[superdork]

aww shucks the dirty ass governments can't dig into our pockets and tax bitcoin... oh no..


FUCK 'EM.