Taxes on Bitcoins: Unreasonable or essential?

[so98nn]

Yeah it is but I guess it's also reasonable in terms of government. If you are earning money then some portion has to go to taxes and there is no harm at all. I have even said same thing to other post where guy was arguing that where he should put his money so that he can avoid taxes. It will even help your credibility in financial way if you pay your taxes on bitcoin.

And they are not 30% straight on any amount. It's a slot that was defined in the India Budget 2020. This slot (30%) is applicable if your earnings are more than INR 10,00,000.

When you reach that much earning yearly then it's fine to pay that much taxes.

Lots of benefits I guess rather than debating about it.

[goaldigger]

Well, where I come from, taxes on Bitcoin has not been effected yet.
 But I think it will be unreasonable to place higher tax on Bitcoin seeing as it is supposed to be beyond any central controly, due to the technology it was built on.
 Rather, Bitcoin owners can pay the regular taxes imposed on fiat currencies, just like every other individual.

Higher taxes means higher profit to the government, but I don't think they should impose higher taxes on this since we are already paying our income taxes at a reasonable rate. Luckily, we haven't liable or forced to pay those taxes since there's no final law about it and there's no regulation yet. If the rate is high, then bitcoiners will suffer again under the control of the government, this can be a big fail for being a decentralized market.

[dcybergeek]

Didn’t report taxes, haven’t cashed out any money not even reporting eth to Neo buys...
I’ll pay taxes when I cash out, but not going to pay taxes on coin conversions in fear I double report gains over 2 years....
They are worried about people cashing out $10,000+ and not reporting to coin to cash.

[Russlenat]

That is why the government wants to regulate crypto for this sake. Obviously, many crypto holders never think about taxes they paid in converting their  BTC to FIAT but that buying goods with the use of our local currency we are simply giving them a tax.

That could be a different tax, in our country we called that Value added Tax, every time we buy a product, tax is already included.
Tax on crypto is different, it's more like an income tax, and in every country they might be treated it differently, or different tax implementation.

If the government will push that taxes in all crypto holders, yet, it was not essential but we have nothing to do and we can't hide anymore.

It's hard to hide when everything is regulated, exchanges, banks, and remittances, they can use that to get the necessary information to trace with regards to our transactions.

[coolcoinz]

If the government will push that taxes in all crypto holders, yet, it was not essential but we have nothing to do and we can't hide anymore.

It's hard to hide when everything is regulated, exchanges, banks, and remittances, they can use that to get the necessary information to trace with regards to our transactions.

Not exactly. Try P2P exchanges or physical currency exchanges. I have used those with quite a success in the past. They are regulated, but are nmot required to gather any personal information if the transaction doesn't exceed a certain amount (I believe in the EU it's 15 or 20k EUR). Think it's not a lot? You can think again, because it's a single transaction requirement. You can come with a friend and say half of the money is his and the limit doubles.
Of course they will not allow you to keep on excchanging 100k every day for a month, but if those aren't unreasonably high amounts you can easily get away with 100k EUR a month, which for most people is more than enough.

[Welle1943]

If the government does not impose taxes on currencies, that the trade you undertake may become illegal and lose your money.
Governments impose taxes and this is their job.
you pay taxes and enjoy with small earning.
Pay your taxes and look for some legal that you to pay the lowest taxes possible.

[Twentyonepaylots]

That is why the government wants to regulate crypto for this sake. Obviously, many crypto holders never think about taxes they paid in converting their  BTC to FIAT but that buying goods with the use of our local currency we are simply giving them a tax.

Taxes is for the community, and I'm not against with taxation however taxing the cryptocurrencies is on a whole new level of illusion. If they give us a single good reason and benefit for it then we might just agree and go with it, but it seems like they all just think about the money. They even call it at first a bubble     Taxes should be put towards the service provider orbiting the cryptocurrencies and not the cryptocurrencies itself, aren't they doing it now?

If the government will push that taxes in all crypto holders, yet, it was not essential but we have nothing to do and we can't hide anymore.

As long as it is attainable for us crypto users, as long as it goes to the right community projects then why not?

My main question on this is HOW?

[supine]

Why would they tax it? And besides how would they even track all of those who are earning crypto?
I am against it and I guess majority of us would also agree to me.
It would just kill crypto and make dump Bitcoin just imagine having a tax to pay for the government then you would also need to pay for transaction fee this is too much for small time earners.

[Sadlife]

Well if its in a country's rule of law then you can't do anything else but just to accept. This is indeed unfair to the Bitcoin user especially if that country hasn't accepted Bitcoin and putting excessive amount of tax considering its not Government property.

The only solution i could think of is to move to other country with no restrictions or regulations in Crypto.

[The cure]

Well for me it's not so bad that we pay taxes and it is better to obey the government's imposition of tax.but the government should not take advantage on it.

[Oilacris]

Well for me it's not so bad that we pay taxes and it is better to obey the government's imposition of tax.but the government should not take advantage on it.

Tax can either be used on good or bad way thats why i will just vary on how those government officials would utilize those taxes for countries development.

Paying up tax is worth but we know that once we do get involved with crypto where people can easily hide of their actual income and cant really be traced off

by government itself.If you do decide to self-proclaimed then its your choice.

[Debonaire217]

The only way they could tax bitcoin is to tax local exchangers. Or local exchanges to tax people from conversion. Because by means of the transaction with bitcoin directly, there's no way the government could interfere. Especially if the people are transacting using wallets that are independent of government interference, such as hardware wallets.

Very well opinionated, I think taxing bitcoin for the sake of being widely accepted is better for me, as it also helps us to have good infrastructures to use.

[Emmychris]

For me I would say the government shouldn't apply tax on bitcoin because there are not helping bitcoin in any aspect, there see bitcoin as a currency used for illegal activities but yet there still benefit from bitcoin through taxation, if any country must apply tax on bitcoin there should first of all adopt bitcoin.

[Reatim]

Yeah it is but I guess it's also reasonable in terms of government. If you are earning money then some portion has to go to taxes and there is no harm at all. I have even said same thing to other post where guy was arguing that where he should put his money so that he can avoid taxes. It will even help your credibility in financial way if you pay your taxes on bitcoin.

And besides tax is our obligation right?we are given a chance to gain how much we can but with a rules that we must pay taxes.

And they are not 30% straight on any amount. It's a slot that was defined in the India Budget 2020. This slot (30%) is applicable if your earnings are more than INR 10,00,000.

different taxes apply in other country,But i think 30% is much big for a business person.

When you reach that much earning yearly then it's fine to pay that much taxes.

Lots of benefits I guess rather than debating about it.

That is why in my Place our local government allow us first 1 year to establish our Business and after that they will collect us Business permit and then we are required to pay for taxes then.

[Findingnemo]

Some countries wants to make tax from everything and let their people die on their own, some other countries have very low tax rate still they can make their country as one of the developed nation in the world.Yes asking 30% tax from our earnings is unreasonable that is why people are hiding their earning which is easy to do, so government should regulate cryptos with good tax rate to get all the benefits from it.

[concept2]

Well, where I come from, taxes on Bitcoin has not been effected yet.
 But I think it will be unreasonable to place higher tax on Bitcoin seeing as it is supposed to be beyond any central controly, due to the technology it was built on.
 Rather, Bitcoin owners can pay the regular taxes imposed on fiat currencies, just like every other individual.

Higher taxes means higher profit to the government, but I don't think they should impose higher taxes on this since we are already paying our income taxes at a reasonable rate. Luckily, we haven't liable or forced to pay those taxes since there's no final law about it and there's no regulation yet. If the rate is high, then bitcoiners will suffer again under the control of the government, this can be a big fail for being a decentralized market.

I have a different thought upon this circumstance. Taxing on bitcoin is essential if we do want bitcoin to become the same as fiat. Without being taxed, bitcoin will still remain outlaw and it is not recognized by the leader of a country. And its will be extremely difficult for bitcoin to be used world wide. However, I believe that most of the people, including me, see this situation as an chance for us to collect and use bitcoin anonymously without being confronted by the law or some sorts like that.  

[LogitechMouse]

Paying taxes is our right and here in our country, people are obliged to pay taxes when we are in a work.

Lucky for our country because as of this moment, the government isn't thinking of putting a tax on Bitcoins or any cryptocurrencies. Taxes are there for the betterment of the economy so if the time will come that they will put taxes on Bitcoins here in our country then there is no problem on it since it is our responsibility to pay taxes right .

[Salauddin1994]

Taxes on Bitcoins It is completely unreasonable because Bitcoin is decentralized and no one can control, The government of any country cannot control it like Fiat currency. Bitcoin is still illegal in many countries and many do not support. If no one knows the real source of Bitcoin then any platform will look at the debate over the imposition of tax on Bitcoin. The government of a country imposes a tax on cryptocurrency to improve their country.

[sayulita]

Taxes on Bitcoins It is completely unreasonable because Bitcoin is decentralized and no one can control, The government of any country cannot control it like Fiat currency. Bitcoin is still illegal in many countries and many do not support. If no one knows the real source of Bitcoin then any platform will look at the debate over the imposition of tax on Bitcoin. The government of a country imposes a tax on cryptocurrency to improve their country.

But the income should be taxable when the person is converting his bitcoins or altcoins into cash. Then they should pay taxes on the gained profit from the crypto because the taxes that they will pay will actually help their country in improving the services for its citizens. Also the biggest debate here is in determining the amount of income that the person earns from cryptocurrencies because there are many ways to hide the income and get away without paying the taxes, but I am sure in the future if the governments make crypto legal all around the globe then they will also find ways to tax the crypto income as well.

[teosanru]

Okay I will give you two aspects of it. First is on a micro scale. Why would you want to pay any taxes on Bitcoins? Obviously it's your hard earned money and government hasn't helped you to earn money. Nor are you keeping the money in any government account or with government security. So why should anyone be liable to pay tax on bitcoin and that too at an exquisite amount percentage of 20-30%. Sounds valid?

But lets take this scenario at a macro scale. Aren't the other citizens paying taxes pretty much the same as you? Why should you get an advantage for merely earning incomes in bitcoin. Think of it that if someone else is earning Income in other mode which is not taxable will you be ready to pay his burden of tax? Moreover on a macro scale. it's for our very own usage. You are using infrastructure set up by your own tax money. So tax on bitcoin is essential unless you are ready to undertake the task of constructing the road besides your house on your own. Or you are ready to invest in power grid of your home on your own.