Bitcoin should be taxed

[Barry Mantle]

If Bitcoin pays tax, it means that the country recognizes Bitcoin, which may be a good thing. However, I am wondering how the country collects tax, since Bitcoin is anonymous, and I am confused about how to check the bill and how much tax to pay.

[whofarted75]

In Ron Paul's view, bitcoin is money, and it should be taxed as such. How do you view this information?

[...] a tax is a responsibility, it's the lifeblood of a county therefore we have to pay, if we evade tax, make sure we do it well so we will not face a problem in the future. [..]

You know that the U.S. didn't even have income taxes till the early 1900's right?

Most people, even in America, are so naive about taxes they actually believe that our streets and highways are paid for out of income taxes. They are not. They believe income taxes pay for public schools. They do not. And yet look at all of the money printing going on in the federal government for infrastructure which supposedly includes paying for schools, roads and highways. It's a freaking joke.

Taxing peoples work/wealth away doesn't make a country better. If you believe that, i'd think you'd like to buy the Dollar. The massive inflation coming is a tax on everyone. Will this make the U.S. more wealthy? Better off? Is that Helping solve the counties problems? I don't think so.

[bryant.coleman]

If Bitcoin is a legal currency, it can be taxed, but encryption must be guaranteed.

Your post is self-contradictory. Currencies can't be taxed. If Bitcoin is classified as a currency, then it can be taxed only at the source (i.e income tax). Only assets comes under capital gains tax. In a way, you earn no real profits from a currency, irrespective of whether it is a fiat currency that is not protected against inflation, or a cryptocurrency such as Bitcoin that is protected from inflation. Do you pay tax on your savings bank accounts? Suppose you are having $10,000 in your bank account, do you need to pay a monthly or yearly tax on this amount?

[Mituletr]

Taxation can only make the price of Bitcoin higher. Taxation means that the country officially recognizes that the income of Bitcoin is legal. Since paying taxes in accordance with the law, the country has the obligation to protect Bitcoin.

[Chathusand]

It is extremely impossible to check each and every transaction in and out of bitcoin, as well as those who own bitcoin assets, because bitcoin ownership is determined by a wallet address, which may belong to more than one individual.

[CoinFoxs]

Taxes applied on the currencies that are legal bitcoin is not legal in developed countries like America, China, Russia etc so it is impossible to tax an illegal currency. When bitcoin is accepted worldwide then automatically taxes will be applied on bitcoin like fiat.

[ReiMomo]

Taxes applied on the currencies that are legal bitcoin is not legal in developed countries like America, China, Russia etc so it is impossible to tax an illegal currency. When bitcoin is accepted worldwide then automatically taxes will be applied on bitcoin like fiat.

Exactly right, the tax will apply if you will sell your bitcoin into fiat no matter how small or big the transaction, it should be taxed by the government.
Most well-developed countries are very strict when it comes to taxation because the reason their economic growth is just because of the tax that they collected and I guess gambling businesses was a big part in it.

It is extremely impossible to check each and every transaction in and out of bitcoin, as well as those who own bitcoin assets, because bitcoin ownership is determined by a wallet address, which may belong to more than one individual.

yes, it is, if the transaction is bitcoin to a bitcoin address, but when you convert your bitcoin into fiat and you are using centralized exchange, a high chance you will be caught it.

[dzonikg28]

Bitcoin is already taxed since few years ago in the countries that Bitcoin is legal, if you are from countries that banned Bitcoin of course they didn't tax it since they think getting source from Bitcoin is illegal etc. But I believe when they already unban Bitcoin, they will taxed Bitcoin because they can't control Bitcoin unless tax it.

I guess OP rather means that it shouldn't be really taxed because money itself isn't taxed. Unless you have to pay tax on wealth, but that is a different story. If I understand him correctly he is a proponent of Bitcoin being used on a daily basis without running into taxation issues because you buy a bagel with your crypto and now actually triggered an event that now entails an event which is subject to taxation.

That is one of the biggest problems cryptocurrencies still face when it comes to using them on a daily basis. It doesn't matter whether you use a card or whatever, in almost any case you have to pay tax or realize a loss by using your cryptocurrencies.

[thecodebear]

Bitcoin is already taxed since few years ago in the countries that Bitcoin is legal, if you are from countries that banned Bitcoin of course they didn't tax it since they think getting source from Bitcoin is illegal etc. But I believe when they already unban Bitcoin, they will taxed Bitcoin because they can't control Bitcoin unless tax it.

I guess OP rather means that it shouldn't be really taxed because money itself isn't taxed. Unless you have to pay tax on wealth, but that is a different story. If I understand him correctly he is a proponent of Bitcoin being used on a daily basis without running into taxation issues because you buy a bagel with your crypto and now actually triggered an event that now entails an event which is subject to taxation.

That is one of the biggest problems cryptocurrencies still face when it comes to using them on a daily basis. It doesn't matter whether you use a card or whatever, in almost any case you have to pay tax or realize a loss by using your cryptocurrencies.

Yeah this is the biggest impediment to using Bitcoin to buy things. Just the headache of figuring out your tax liabilities. Since the IRS considers Bitcoin an asset and not a currency it forces people to generally treat Bitcoin as an asset instead of a currency. Hopefully eventually there will be a law passed that excludes small purchases with Bitcoin, I know at some point a bill to exclude Bitcoin purchases under $600 was introduced but went nowhere. Current tax law on crypto makes it easier to just decide how much Bitcoin you want to sell for spending purposes and sell it for fiat, figuring out the taxes more easily on a single big sell order, and then spend as you wish with the fiat from that.

[clint25n]

if it is taxed then every country must relieve the company, this will both have a positive impact. what's more, considering that so much money is spinning in bitcoin, the results will be so large that it will go into a country's  positive considering the very beneficial impact for business actors, especially those digital money investor

[dzonikg28]

Bitcoin is already taxed since few years ago in the countries that Bitcoin is legal, if you are from countries that banned Bitcoin of course they didn't tax it since they think getting source from Bitcoin is illegal etc. But I believe when they already unban Bitcoin, they will taxed Bitcoin because they can't control Bitcoin unless tax it.

I guess OP rather means that it shouldn't be really taxed because money itself isn't taxed. Unless you have to pay tax on wealth, but that is a different story. If I understand him correctly he is a proponent of Bitcoin being used on a daily basis without running into taxation issues because you buy a bagel with your crypto and now actually triggered an event that now entails an event which is subject to taxation.

That is one of the biggest problems cryptocurrencies still face when it comes to using them on a daily basis. It doesn't matter whether you use a card or whatever, in almost any case you have to pay tax or realize a loss by using your cryptocurrencies.

Yeah this is the biggest impediment to using Bitcoin to buy things. Just the headache of figuring out your tax liabilities. Since the IRS considers Bitcoin an asset and not a currency it forces people to generally treat Bitcoin as an asset instead of a currency. Hopefully eventually there will be a law passed that excludes small purchases with Bitcoin, I know at some point a bill to exclude Bitcoin purchases under $600 was introduced but went nowhere. Current tax law on crypto makes it easier to just decide how much Bitcoin you want to sell for spending purposes and sell it for fiat, figuring out the taxes more easily on a single big sell order, and then spend as you wish with the fiat from that.

That bill alone would have given Bitcoin a tremendous boost! Think about it if you can spend your Bitcoin for purchases under $600 without having to pay attention to tax implications, that would make using Bitcoin so much easier and attractive that it would find its way very quickly into the economy and therefore into the society. The tax for the government wouldn't be lost completely. It would perhaps be like a stimulus because there is is still enough tax involved when you make a purchase under $600. VAT, corporate tax and income tax.

Beyond the topic of tax, if the USA would take the lead in passing such a bill, I think they might also see an influx of highly talented people from all over the world who are seeking to advance the cryptocurrency industry within the US. There are so many implications that I believe many of the political decisions regarding Bitcoin have been short-sighted recently.

[seoincorporation]

As other users already mentioned, bitcoin should pay tax only if it's considered a coin on that country, just like it happens in El Salvador, there now people can use Bitcoin to pay their taxes, and that's possible because bitcoin is not a legal coin for them.

In my county Bitcoin is a Digital asset and you have to pay taxes only if you made a profit trading it, let's say you buy at $100 and sell at $110, only the $10 profit has to pay taxes.

[Daniel91]

As other users already mentioned, bitcoin should pay tax only if it's considered a coin on that country, just like it happens in El Salvador, there now people can use Bitcoin to pay their taxes, and that's possible because bitcoin is not a legal coin for them.

In my county Bitcoin is a Digital asset and you have to pay taxes only if you made a profit trading it, let's say you buy at $100 and sell at $110, only the $10 profit has to pay taxes.

In most countries so far, bitcoin has been seen as a speculative and risky asset and there has been an obligation to pay capital gains tax.
In the EU, such decisions followed a ruling by an EU court.
However, once bitcoin has become official money in El Salvador, and it is possible that other states will soon make such a decision, it seems to me that there is a real possibility that lawmakers will change the legal definition of bitcoin.
It is difficult to speculate but it is possible that bitcoin could be taxed in another way in the future, perhaps as an income tax.

[Ozero]

It is extremely impossible to check each and every transaction in and out of bitcoin, as well as those who own bitcoin assets, because bitcoin ownership is determined by a wallet address, which may belong to more than one individual.

In my country, the government is going to impose a 5% tax on profits from activities in cryptocurrency, which should be defined as the difference between the cost of buying a cryptocurrency and its selling value. Of course, the state has the right to impose a tax on any profits of citizens, regardless of whether it somehow contributed to the receipt of this profit by us. If this law is passed, then I would rather observe it and sleep peacefully, since 5 percent is almost a symbolic tax. The draft states that after filing the declaration, the tax authority has the right to require the provision of wallets to verify transactions and the correctness of tax payment. Hope this will be a public key.

[Qirtov]

yes it's good if bitcoin is taxed. Before investing you must really understand the basics first. don't try to be consistent and concentrate in trading. This is the main key so that you get abundant profits. Seeing the fantastic price of bitcoin makes people confused, should bitcoin really be taxed after this. whatever the decision because I still support number 1.

[nightxglow]

In my country there is no tax regulation regarding bitcoin yet, but although I kinda don't like having to get my profits taxed, I guess it is important to tax bitcoin. Why? Because for my experience, before, I can get a lot of money, $1000 or even $2000 without needing it to be cut with tax. Crazy right? Meanwhile in my country, if you're single and your salary is around $320 a month, you need to pay tax for your income. While that time, I can get all of my money. I think taxing bitcoin will be beneficial for the governments as well, and we as citizen should be willing to get taxed for our income, so I don't really mind. Especially if after having any tax regulation, the government might think positively to bitcoin, supporting it and even legalized it, then it will be really great. Just make sure the tax won't be so high and backwards to us instead, it'll be quite upseting if so.

[mrongos]

it is possible that the tax on cryptocurrencies is calculated based on the profits earned by investors. For example, when an investor invests Rp. 1 million and then gets Rp. 3 million, the investor gets a profit of Rp. 2 million. This advantage will be studied by the scheme and the taxation system, as I know countries that have legalized bitcoin, have long received taxes from bitcoin..that's information I know, if wrong please correct it.

[Tigerheart3026]

as i know bitcoin is not legal currency in my country, even many countries it's not yet considered a legal tender,
the government does not have the opportunity to collect taxes in any way,
even if it is legal, it will be very complicated for the government to collect taxes

[mrongoz_imut]

bitcoin cannot be controlled by any party, including the government itself so far has not been able to control bitcoin, if you say bitcoin must be taxed, I think bitcoin has long paid taxes to countries that have legalized bitcoin, now there are still many governments that still prohibit use bitcoin, so by itself we can't even give taxes to them..

[Qikiye]

If the government taxed Bitcoin, it would be legal. In my opinion, Bitcoin must be taxed. No immoral anti-social activities will be done if it is brought under the tax. So as far as possible.