It's inevitable that countries would try to tax bitcoin, it's either that or ban it. But if someone only deals in bitcoin, how are the governments going to enforce that? That's the big question to me.
How do governments enforce income tax? How does government enforce taxes on any private transactions?
In the USA:
The I.R.S. No one wants to fuck with the I.R.S. Bitcoin is a general ledger, they literally can see every single transaction that ever takes place..
not the one done face to face, what if i sold something and i pay it in bitcoin face to face? impossible to track
It's inevitable that countries would try to tax bitcoin, it's either that or ban it. But if someone only deals in bitcoin, how are the governments going to enforce that? That's the big question to me.
How do governments enforce income tax? How does government enforce taxes on any private transactions?
In the USA:
The I.R.S. No one wants to fuck with the I.R.S. Bitcoin is a general ledger, they literally can see every single transaction that ever takes place..
Ok, but consider a situation like this:
Steve completes a task or sells a service. Steve gets paid in bitcoin. Steve never reveals his real idenitity to his customer/employer. Wouldn't Steve have to be a moron to report his bitcoin earnings in this case? Or am I missing something?
If, in your example, Steve were to spend his coins on some amount of goods and/or converts his BTC into fiat then he would likely be able to live a much higher standard of living then what he is reporting as his income. This alone is something that the IRS can use as evidence of tax evasion. This is assuming that Steve does this over many times and earns a lot from doing this verses the amount he earns from his reported income. If Steve only makes a little bit then it would be hard to detect but would still be unethical.
explain "much higher standard of living", the problem is all there, if he just use the not reported income for something small like pc component and electro domestic stuff, they won't trace him, foods is also a good things to buy, if you want escape taxes
I got the point, correct you are right 
