[2014-06-03] California Inching Closer Towards Legalizing Bitcoin

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http://cointelegraph.com/news/111706/california_inching_closer_towards_legalizing_bitcoin

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[bryant.coleman]

Legalization is a foregone conclusion. I am more worried about the applicable tax rates. Have reason to worry, as California is pretty much infamous for its back-breaking tax rates. 

[zeetubes]

California gets a huge amount of tax revenue and prestige from Silicon Valley and I am sure they don't want to lose any start up BTC businesses to other states or countries.

[aigeezer]

An old joke says that a Freudian slip is the kind of thing that happens when you intend to say "Please pass the butter" but instead you say "You monster - you've ruined my life".

In that vein, from the article, bolding added:

"Many cryptocurrency related startups and investors were probably not even aware that alternatives (sic) forms of money are technically illegal in California since neither was ever persecuted in the state."

Meanwhile, the feds are of the opinion that BTC is not money at all, but is instead a commodity, iirc. Other jurisdictional regulators offer yet other opinions.

The various regulatory games continue, but I don't think the honey badger cares.

[SOAD]

I didnt even know it was illegal, or are they just taking steps to regulate and tax it?

[bryant.coleman]

California gets a huge amount of tax revenue and prestige from Silicon Valley and I am sure they don't want to lose any start up BTC businesses to other states or countries.

A lot of companies are moving to states like Nevada, due to the extremely high tax rates in California. Even some of the well-established companies in the Silicon Valley are considering moving to other states.

[Ron~Popeil]

I didnt even know it was illegal, or are they just taking steps to regulate and tax it?

It is probably one of those old and obscure laws that were never taken off the books. California's unique history makes it prone to this kind of stuff.

[Ron~Popeil]

California gets a huge amount of tax revenue and prestige from Silicon Valley and I am sure they don't want to lose any start up BTC businesses to other states or countries.

A lot of companies are moving to states like Nevada, due to the extremely high tax rates in California. Even some of the well-established companies in the Silicon Valley are considering moving to other states.

California is a beautiful state with a highly educated population that brings a in lot of capital that would other wise go elsewhere. Why they want to tax themselves to death is a mystery.

[CoinMode]

The real indicator that you are living in a time of tyranny is when anything new is outlawed by default.

[bryant.coleman]

California is a beautiful state with a highly educated population that brings a in lot of capital that would other wise go elsewhere. Why they want to tax themselves to death is a mystery.

California is a heavily blue state. That explains everything. Also, California has dozens of sanctuary cities and millions of illegal immigrants. So naturally, the number of welfare rats are more than the total number of tax payers. Therefore, it is no surprise that the state is close to bankruptcy.

[Ron~Popeil]

The real indicator that you are living in a time of tyranny is when anything new is outlawed by default.

Yep. When citizens fear government there is tyranny. When government fears the citizens there is freedom.