CBDC will make it easier for the government to see all the transactions we do. So it will probably be easy to determine the amount of
tax that should be paid by each person, based on the income earned. There's very little chance that we can avoid taxes anyway,
if it is true CBDC has been used. In fact, most of the products created by the government are meant to collect taxes. So I agree that
the emergence of CBDC is indeed related to the need for tax filing.
Topic: . (Read 279 times)
Will the advent of CBDC's forgo the necessity of filing taxes?
Since they will be able to see every single transaction you make.....
Since they will be able to see every single transaction you make.....
Not at all, you are generally taxed on income but not every receipt transaction represents income. If they were just going off receipts, they would tag refunds, any time you split a bill for someone and they pay you back, etc. Further, in the US for example, the government already knows how much you make because it's reported by your employer, but you still have to file your taxes. The tax rate is overly complicated, as there are all sorts of deductions and tax breaks available that you have to file to make use of. The tax filing itself is the true up of what you owe vs. what was withheld, so it tells you what you either have to pay to settle up or what you're owed for overpaying after your deductions. This wouldn't change with a CBDC, the system would be the same.
I'd hold my breath on this on until the UK make a cbdc, I'd imagine they'd put a 2-4%.inflation rate on a coin or at least produce another cbdc that has low inflation - afaik some gold coins are legal tender still (but they're worth more just to sell on than spend).
And yeah the US irs seems crazy compared with the uks hmrc - tbh my tax return taxes about 2 hours to fill in and its about 40 pages long but it is mainly checkboxes and filling in amounts - if you file wrong and they assume its an accident then its £10 a month you don't pay the tax for added to the bill (lower than a lot of interest rates if its high enough for them to investigate)...
And yeah the US irs seems crazy compared with the uks hmrc - tbh my tax return taxes about 2 hours to fill in and its about 40 pages long but it is mainly checkboxes and filling in amounts - if you file wrong and they assume its an accident then its £10 a month you don't pay the tax for added to the bill (lower than a lot of interest rates if its high enough for them to investigate)...
On the one hand, technology makes it easier but for taxpayers technology in currency is very scary. If the government demands transparency of the public, there should be openness and convenience for the public to access and know the allocation and distribution of their tax payment money. When people can know and prove that the tax money they pay is right on target and used for the benefit of society, they will not look for a back door to "not pay taxes".
I'd hold my breath on this on until the UK make a cbdc, I'd imagine they'd put a 2-4%.inflation rate on a coin or at least produce another cbdc that has low inflation - afaik some gold coins are legal tender still (but they're worth more just to sell on than spend).
And yeah the US irs seems crazy compared with the uks hmrc - tbh my tax return taxes about 2 hours to fill in and its about 40 pages long but it is mainly checkboxes and filling in amounts - if you file wrong and they assume its an accident then its £10 a month you don't pay the tax for added to the bill (lower than a lot of interest rates if its high enough for them to investigate)...
And yeah the US irs seems crazy compared with the uks hmrc - tbh my tax return taxes about 2 hours to fill in and its about 40 pages long but it is mainly checkboxes and filling in amounts - if you file wrong and they assume its an accident then its £10 a month you don't pay the tax for added to the bill (lower than a lot of interest rates if its high enough for them to investigate)...
Interesting thought, though I don't know whether that will be the route that we'll be taking should CBDCs replace our current monetary system. They would have to integrate yet another system for checks and audits and easier tracking of who spends what on which. That's yet another resources used for automation, but a big step that can help regulators and taxpayers alike.
Then again, you have the ultra-rich people evading taxes here and there with their own schemes to hide what they really gained and owned. With automation such as what you're thinking of, it will be a lot easier for them to evade taxes and pile up their riches while the rest of us pay taxes on their behalf, which sucks.
Then again, you have the ultra-rich people evading taxes here and there with their own schemes to hide what they really gained and owned. With automation such as what you're thinking of, it will be a lot easier for them to evade taxes and pile up their riches while the rest of us pay taxes on their behalf, which sucks.
Will the advent of CBDC's forgo the necessity of filing taxes?
Since they will be able to see every single transaction you make.....
Since they will be able to see every single transaction you make.....
No! CBDCs will only make audits easier and probably automated! Nothing else will change on that front. Yes, with the implementation of CBDC, government will be able to see every transaction but that doesn't mean that they will have the resources and capacity to actually see it in reality unless a certain flag/concern is raised!
Individual Taxing will not go away with CBDC. It will just make the entire process more transparent to the government and will make it harder for a common citizen to hide any income! Hope it makes sense!
What you are talking about is for people who are poorer, or at the very best case is a low middle income type of people.
When you are rich enough you start to remove taxes from your life, you profit a ton but "show" that you didn't, you move stuff to overseas, you move your company to tax havens as headquarters but you will never be in that nation, it would just on paper.
Basically all in all I would assume that if you are rich enough none of these taxes deal really bothers anyone, you will be capable of doing whatever you want without worrying about what IRS or what IRS is in your nation would say about it. Hell if you have a ton of tax debt as well, you can get them removed in exchange of some bribes as well and paying only a fraction of it. Taxes are for people who go to work, not the owner of that work.
When you are rich enough you start to remove taxes from your life, you profit a ton but "show" that you didn't, you move stuff to overseas, you move your company to tax havens as headquarters but you will never be in that nation, it would just on paper.
Basically all in all I would assume that if you are rich enough none of these taxes deal really bothers anyone, you will be capable of doing whatever you want without worrying about what IRS or what IRS is in your nation would say about it. Hell if you have a ton of tax debt as well, you can get them removed in exchange of some bribes as well and paying only a fraction of it. Taxes are for people who go to work, not the owner of that work.
That's right, from the beginning of 2017 all banking transactions of citizens in the country or abroad are under surveillance of the tax administration (banks send those data to tax office). Obviously some smart politician liked the idea of a big brother who sees everything - but of course that doesn't mean it's still not possible to manipulate the system if you have the right people in the right places.
The paradox is that in the same country you can buy or sell crypto worth up to 2000 EUR without an ID (physical exchange offices) daily.
Bank accounts are no longer a secret: Here are the cases in which you need to worry
The paradox is that in the same country you can buy or sell crypto worth up to 2000 EUR without an ID (physical exchange offices) daily.
Bank accounts are no longer a secret: Here are the cases in which you need to worry
There are many ways that can be used to do money laundering safely even in my country can receive money from abroad in very large amounts without having to pay taxes and in legal ways, ranging from camouflage exports to business money changers.
One of my friends is one of the vendors who created a system used by the finance department to capture absentee taxpayers. But the data input process itself took around three years at the start of the construction of the system. This is proof that the government is also up to date in technological progress. What makes the system is the government so that it is very easy for the government to manipulate and sabotage the system that is already running.
yikes, where do you live? that sounds like some pretty orwellian shit. they can just snoop on every transaction you make?
That's right, from the beginning of 2017 all banking transactions of citizens in the country or abroad are under surveillance of the tax administration (banks send those data to tax office). Obviously some smart politician liked the idea of a big brother who sees everything - but of course that doesn't mean it's still not possible to manipulate the system if you have the right people in the right places.
The paradox is that in the same country you can buy or sell crypto worth up to 2000 EUR without an ID (physical exchange offices) daily.
Bank accounts are no longer a secret: Here are the cases in which you need to worry
as much as i hate banks, they are at least a layer between you and the government. information sharing between the fed and the IRS will probably be on autopilot. i'm not looking forward to it!
i'm paranoid enough about using cash app or venmo.
yikes, where do you live? that sounds like some pretty orwellian shit. they can just snoop on every transaction you make?
i'm paranoid enough about using cash app or venmo.
In my country tax office see all bank transaction, and most people do not need to do anything regarding taxes - if they need some further clarification then they contact you.
yikes, where do you live? that sounds like some pretty orwellian shit. they can just snoop on every transaction you make?
It'd probably still be the same. I doubt they'd let go of it, and they'd probably issue a few necessary rules so that the idea of what the money is for is plain to see, with proof as well. They have all the reason to ask for information regarding transactions, after all, Just hope this actually makes stuff easier instead of much more complicated.
But on a more serious note, tax payment is not preventing the introduction of technology into different sectors, that's bound to happen sometime in the future to some extent. The quoted discussion was about tax refunds, which basically means you were overcharged previously and not about tax defaults.
Nah, even with robots I'd doubt taxes would disappear. Robots in itself need money to be continuously operated and maintained, as well as possible improvements in the future after all. Plus, I'm sure the government would one way or another find excuses for taxes to still become relevant after robots are implemented, they like free money after all.
If everyone or most people stop paying taxes, the robots would do what needs to be done through hard work & people would begin to have less right than the robots in an evil society. Imagine what that means.
Well robots do not pay tax and as such the government would still be at a loss. But on a more serious note, tax payment is not preventing the introduction of technology into different sectors, that's bound to happen sometime in the future to some extent. The quoted discussion was about tax refunds, which basically means you were overcharged previously and not about tax defaults.
To be honest, paying taxes for the benefit of your community is a beautiful things. It's actually gives alot satisfaction seeing your tax used for what you agreed it will be used for.. Besides, tax is one of the most sustainable way a society full of hardworking people can fund their developments.
If everyone or most people stop paying taxes, the robots would do what needs to be done through hard work & people would begin to have less right than the robots in an evil society. Imagine what that means.
If everyone or most people stop paying taxes, the robots would do what needs to be done through hard work & people would begin to have less right than the robots in an evil society. Imagine what that means.
In an ideal society where tax money goes in the right places, people should not object to paying taxes because that money is used for the common good. But if we take the example of a corrupt country where more than half of the state budget goes to the salaries of politicians, their expensive residences and cars, the best food and drink, and the employment of suitable instead of capable and competent people - and on the other hand children go to life-threatening schools. , they are hungry because their parents can't afford one meal at school - should someone be happy to pay taxes in such a country?
Robots will come for sure, but rest assured that they will be funded by people who will pay taxes, as well as all other nonsense that is paid with the same money.
Will the advent of CBDC's forgo the necessity of filing taxes?
Since they will be able to see every single transaction you make.....
Since they will be able to see every single transaction you make.....
In my country tax office see all bank transaction, and most people do not need to do anything regarding taxes - if they need some further clarification then they contact you. With CBDC everything will be even easier for them, there is no hiding in such a system.
CBDC will take away the lion's share of revenues from banks and intermediaries. A simple transaction to pay a mobile or utility bill requires the services of several intermediaries. Banks will not be able to charge money transfer fees.
China promises to launch CBDC in 2021
https://www.coindesk.com/chinese-state-owned-bank-offers-test-interface-for-pboc-central-bank-digital-currency
Thailand tests CBDC
https://happycoin.club/tajland-testiruet-cbdc-v-operacziyah-s-krupnymi-kompaniyami/
It is too early to talk about taxes now, because CBDCs are being implemented not for mass use, but for settlements between banks, corporations, etc.
China promises to launch CBDC in 2021
https://www.coindesk.com/chinese-state-owned-bank-offers-test-interface-for-pboc-central-bank-digital-currency
Thailand tests CBDC
https://happycoin.club/tajland-testiruet-cbdc-v-operacziyah-s-krupnymi-kompaniyami/
It is too early to talk about taxes now, because CBDCs are being implemented not for mass use, but for settlements between banks, corporations, etc.
Will the advent of CBDC's forgo the necessity of filing taxes?
Since they will be able to see every single transaction you make.....
Since they will be able to see every single transaction you make.....
They already can if payment companies and banks would agree to share all data with governments. The problem is, just seeing transactions doesn't allow you to tax people. For example, you see a transaction for $1,000 from Alice t Bob - how can you know anything about the nature of it? Is it a payment, a gift, a loan? You can't expect every single transaction to come with a proof of its purpose. Or someone withdraws money from a crypto exchange - you can't know how much profit they made with trading, because coins could have come from many different sources before being sold.
If everyone or most people stop paying taxes, the robots would do what needs to be done through hard work & people would begin to have less right than the robots in an evil society. Imagine what that means.
Well robots do not pay tax and as such the government would still be at a loss. But on a more serious note, tax payment is not preventing the introduction of technology into different sectors, that's bound to happen sometime in the future to some extent. The quoted discussion was about tax refunds, which basically means you were overcharged previously and not about tax defaults.
If you must print more coins (which I see nothing wrong in), print for people who are working and serving their communities well and the right way.
I don't see any right way to arbitrarily print more money. It removes financial security from savings, if more could simply be printed and injected into select markets and further undermines a free economy.Well, I think if robots/AI do most of the jobs that people are supposed to do, people will find them more valuable/important than humans. They will be paid more. The independent/smart ones (or those not owned by anyone) will pay taxes.
They will likely pay taxes if they are running around and using the roads, fuel, buildings etc, or the charges will "typically" go to their owners. You have to understand the future they want for robot/AI to understand that taxing them are likely. Cars and other machines are taxed, I don't see why they won't tax robots esp the independent ones.
In regards to printing money, I think it can work well (almost automatically) in a system with well decentralized setup and Bitcoin principles.
Will the advent of CBDC's forgo the necessity of filing taxes?
Since they will be able to see every single transaction you make.....
Since they will be able to see every single transaction you make.....
Transaction amounts don't equate to income tax liability, so no, I don't think so. I'm sure it will help them identify people who are dumb enough to do large scale tax evasion using CBDCs, but I don't see CBDCs affecting tax codes or regular tax filings.
Everything taxable would be accurately taxed.
If I pay you $1,000 right now using a CBDC, how would they know it's taxable, and at what rate? It could be a gift, loan, payment for goods, etc. Those wouldn't be taxable as income.
If everyone or most people stop paying taxes, the robots would do what needs to be done through hard work & people would begin to have less right than the robots in an evil society. Imagine what that means.
Well robots do not pay tax and as such the government would still be at a loss. But on a more serious note, tax payment is not preventing the introduction of technology into different sectors, that's bound to happen sometime in the future to some extent. The quoted discussion was about tax refunds, which basically means you were overcharged previously and not about tax defaults.
If you must print more coins (which I see nothing wrong in), print for people who are working and serving their communities well and the right way.
I don't see any right way to arbitrarily print more money. It removes financial security from savings, if more could simply be printed and injected into select markets and further undermines a free economy. I think tax prep and audit defense "industry" would fight hard against any such shortcuts. We're supposed to have an incomprehensible tax system and overpay our taxes so that we could pay someone to get the returns done and feel good about it because we're getting a "refund". Then of course we're still on the hook for any missteps along the way so that we could pay some more to avoid going to jail.
Besides fiat is already almost entirely digital and nothing really stops the government from snooping on it.
Besides fiat is already almost entirely digital and nothing really stops the government from snooping on it.
Yeah that is weird, that anyone gets a "refund", as that means they took "too much" money from you.... which is basically bullshit anyways.. they will just print more!!!!!!!!!
And on that note... what's to stop CBDCs from just "printing more" tokens whenever they want.... still "fiat"... still a skam!!!!
Not like any CBDC is going to have a hard-cap like btc or ltc
To be honest, paying taxes for the benefit of your community is a beautiful things. It's actually gives alot satisfaction seeing your tax used for what you agreed it will be used for.. Besides, tax is one of the most sustainable way a society full of hardworking people can fund their developments.
If everyone or most people stop paying taxes, the robots would do what needs to be done through hard work & people would begin to have less right than the robots in an evil society. Imagine what that means.
Perhaps the tokens will be printed to fund society while the robots/AI go to work. That is a dangerous thing to think of.
We must continue to work(and pay taxes).
If you must print more coins (which I see nothing wrong in), print for people who are working and serving their communities well and the right way.
Will the advent of CBDC's forgo the necessity of filing taxes?
Since they will be able to see every single transaction you make.....
Since they will be able to see every single transaction you make.....
This will happen only if cash and cryptocurrencies get banned and CBDC's get a total monopoly as the one and only legal tender,which most likely will never happen.Paper money are anonymous and people are using cash for most of their lives.I total cashless society dominated by CBDC's will turn many not-so-tech savvy people into outsiders and this is unacceptable in any functional democracy.
I don't believe that ANY transaction will be traceable in a CBDC system.The hackers will sooner or later find a way to break the system.
In terms of necessity, I guess the government can do away with people individually filing their taxes. With CBDCs fully replacing the use of cash, government agencies may now efficiently track down people's transactions more than ever and they could just simply issue a sort of tax bill to their citizens. There's no need to even pay as they could just easily deduct it from your wallet.
With CBDCs, there is no more hiding. Everything taxable would be accurately taxed. Resorting to offshore banking is now made obsolete with CBDCs.
CBDCs = Digital Fiat = Fully Centralized = Unlimited = and so on. There's no difference. Well, it's now a lot easier to create. They can now do away with those large and noisy prrrrrrrrinting machines.
With CBDCs, there is no more hiding. Everything taxable would be accurately taxed. Resorting to offshore banking is now made obsolete with CBDCs.
And on that note... what's to stop CBDCs from just "printing more" tokens whenever they want.... still "fiat"... still a skam!!!!
CBDCs = Digital Fiat = Fully Centralized = Unlimited = and so on. There's no difference. Well, it's now a lot easier to create. They can now do away with those large and noisy prrrrrrrrinting machines.
Isn't the purpose of CBDC's would be treated as "digital money"? Then probably everything is the same like filing taxes, etc.
Yeah that is weird, that anyone gets a "refund", as that means they took "too much" money from you.... which is basically bullshit anyways.. they will just print more!!!!!!!!!
That's what I thought so also! It just doesn't matter how many tokens you have, but it still backed. But IMO, it gives the security that the token is backed by the fiat in their vault or something. Since the printing of money is nowhere near the private companies, I think it's safe to say that it's not in their power to "print" however they want, but if they collaborate with the government and print more, that's where the trouble is going to be. 
And on that note... what's to stop CBDCs from just "printing more" tokens whenever they want.... still "fiat"... still a skam!!!!
Not like any CBDC is going to have a hard-cap like btc or ltc
I'd hold my breath on this on until the UK make a cbdc, I'd imagine they'd put a 2-4%.inflation rate on a coin or at least produce another cbdc that has low inflation - afaik some gold coins are legal tender still (but they're worth more just to sell on than spend).
And yeah the US irs seems crazy compared with the uks hmrc - tbh my tax return taxes about 2 hours to fill in and its about 40 pages long but it is mainly checkboxes and filling in amounts - if you file wrong and they assume its an accident then its £10 a month you don't pay the tax for added to the bill (lower than a lot of interest rates if its high enough for them to investigate)...
We could always see staking/lending with cbdcs, I think nsandi (just using UK examples) try to match inflation rates so it's likely that could continue into a cbdc...
I think tax prep and audit defense "industry" would fight hard against any such shortcuts. We're supposed to have an incomprehensible tax system and overpay our taxes so that we could pay someone to get the returns done and feel good about it because we're getting a "refund". Then of course we're still on the hook for any missteps along the way so that we could pay some more to avoid going to jail.
Besides fiat is already almost entirely digital and nothing really stops the government from snooping on it.
Besides fiat is already almost entirely digital and nothing really stops the government from snooping on it.
Jump to: