Topic: Bitcoin Will Kill The Income Tax (Read 29933 times)

No i think there is a possibility in near future. As Bitcoin is a peer to peer transaction there is a possibilities that banking system will be dried up and the government will suffer a loss of revenue due to taxation. But for now there are lot of people who used fiat as legal tender in buying basic needs in our time I think it will not happen, but maybe this is the time that we might think any means that the government can also earn the right taxation revenue, because government also is a very vital in protecting citizen rights.

The government's management will be changed to match the control of the tax. They have enough room to do it. Imagine what would happen if they applied the blockchain to income tax returns or management. There will be a race for blockchain technology in the near future. Regulatory requirements will be introduced to bring about change and development. we depend on that.

i dont think so. the world changes everyday. the new things will come, old things need to be removed. Crypto will become the offcial currency of the wolrd and the Governments have to research and find out the way to collect tax.

That will be possible if bitcoin will going to be legalize by every country ..if all will goin to use bitcoin in paying in restaurant fast food ...paying monthly bills or even buying basic needs ..all the payment done through bitcoin will never going to pass in banks and will never be detected by government so how can they charge tax for any of payments done through bitcoin..but Thats not goig to happen yet...because theres just number of countries accepting bitcoin and not everybody in every countrt are accepting bitcoin yet because  there are some thats still want to have tax in everything (well for sure its not me 😁) .

If bitcoin is accepted world wide to buy all the things like US dollar, then only income tax can be avoided.But, it is not the case.Every time, for buying anything, we have to convert bitcoins into fiat and so we have to pay tax for the fiat converted.To my knowledge, we could recharge our mobile and hardly buy products found in some offers online produced by individual persons. It would take a long time for us to avoid income tax on our bitcoin earnings.

This good but this cant be possible right now because not everyone are joining bitcoin. People are still into banking and other taxable transactions. Maybe when all people are unto crypto.

i guess it wont happen especially if you are receiving higher salary then company you are working for well render their full compliance to the government that if you refer to avoidance of income tax. You may face a lawsuit if you will not decalre your salary or else the company you are working for will be reprimanded or put to closed. You cannot escape salary income tax especially if you have fixated income. However, there are certain job that receive unfixated income and will more likely to escape income tax. But in terms to btc if the owner of the company pays you in btc then therefore they are also held liable of the employment agency since they have worker but they could not show the transparency of the salary pay. Usually the employer will issue a payslip. so bitcoin wont kill income tax.

Actually i think the OP want to say about the anonymous feature of Bitcoin which is the biggest barrier for goverment to make their taxes into the right person.
And you know the fact? Goverments don't 100% want any thing that they can't tax survive, so Bitcoin is one of them and even they can tax it, they can't control and config the blockchain system of Bitcoin so it's  likely impossible to do anything with it.

I believe a much better tax system would be a consumption tax. Meaning, you pay tax on everything you buy and that's it. This is a much fairer system because if you have a lot of wealth you buy a lot of things, and therefore you pay more tax. You can even give credits such as "no tax on first X dollars spent".

If people will actively use bitcoin for all possible transactions in the future, crypto can substitute the financial system at all and there will not income tax. But, government will certainly do something with that. Maybe there will be some kind of tax on internet, higher tax on private property, realty, etc.

Bitcoin is decentralized, many people do not take doses of crypto currency, so you can not expect changes in taxes in the next 5 years, which means that this topic is not topical

It is the big threat to goverment's income. Income tax is the major source  of income for any nation. If is is diminished by anything that it will definitely effect to the economy of the country so it should a disastrous situation in the coming future.

yes it will definitely kill the income tax that's why government is not so sure about its applicabilty. It is warned by some government to make a regular practices in our life. So income tax is under a great threat now.

This is the wrong thing, the tax is the awareness of some one, many people are happy to pay taxes even though he also keeps the money in bitcoin, and I hope if the country expects tax from bitcoin then immediately legalize bitcoin.

perhaps for the time being still few countries that taxes for bitcoin investors, maybe a few years to come all bitcoin holders will be taxed, especially countries that have legalized bitcoin. in my country bitcoin has not been in taxes

Yes it is true it will definitely kill income tax unless until no regulations from the government. Every government want to harness it because a major amount of government's income rely upon income tax.

Bitcoin can kill income tax, in other words people and then using Bitcoin has no tax at all . It depends if they legalize in other country. And also I think it is not a problem.

Not sure bitcoin and income tax are in the same dimension and thus a realistic connection can be drawn between the two to make predictions: bitcoin is a type of value exchange mechanism, in other words it is an economic construct. Taxes, in turn, are primarily legal constructs, i.e. they are essentially rules enforceable in a specific country's court system. Bitcoins can be taxed or not, fiat currency can be taxed or not, any combination is possible and depends on the state of the specific legal system, imho.

In other words, here's a simple 2x2 matrix where any cell is a possible situation; the bottom left cell is the situation in most countries at the moment:

+------------------------------------------+--------------------------------------------+
| Taxes exist, bitcoin has legal status    | No income tax, bitcoin has legal status    |
+------------------------------------------+--------------------------------------------+
| Taxes exist, bitcoin has no legal status | No income tax, bitcoin has no legal status |
+------------------------------------------+--------------------------------------------+

Some examples: firstly, imagine a certain country decides to accept bitcoin as legal tender (i.e. equivalent to money), the necessary prerequisite for that to happen is that the banking system starts working with it on par with the national currency. If that happens, banks will do KYC and AML procedures on the incoming bitcoins, which essentially removes anonymity from the latter. And allows it to be taxed just like any other type of value exchange mechanism. Another example from the above 2x2 matrix is a country with no income tax (e.g. Estonia and Latvia don't charge corporate income tax unless you withdraw dividends) but no legal status for bitcoin or other cryptocurrencies. The remaining two cells of the matrix are also easily imaginable.

Countries are taking bitcoin seriously, they are following the KYC norms of banks. Once bitcoin transactions completes, money will be back in account which will be taxable. So taxes will not be dry or we can say that bitcoin transactions will help generating taxes on the money we will earn from long term or short term profits.

Maybe,I don't have much dea