Topic: How will blockchain affect the taxing system? - page 2. (Read 442 times)

Well, that last part is true to some extent, but we also have to realize that even if it brings about transparency and transaction tracking, wallets are not necessarily attached to one single person which makes the idea of not being able to track P2P transactions before they can even say it is going to be taxed will be a hard thing to achieve.

The only way taxation can be effective will be through the exchanges, and just like you said, the chances to even evade tax without reporting your actual income is always going to be there somehow with blockchain and in that case, there would be some limit for the government when it comes to taxation.

If (and only if) blockchain become mainstream then maybe the tax system would be like ICO system, there will be proposals, people vote on smart-contract, then fund release if cap reached. Otherwise, the government would simply use old the old tax system. They will simply impose taxes on exchanges.

It is very difficult for now to show any affect of the crypto taxes on blockchain the tax will be paid by the user if they are willing and crypto market if grows and just like donation every one should pay some tax to their country exchange then it will be a good initiative but people use crypto to hide their wealth they will not be ready to pat one penny as tax.

For me, the blockchain does not affect the taxing system of the country because it seem like it helps the government to provide a good economy. Example, you use your digital money in buying stuffs that all you need and that stuffs is having a tax you purchase.

The effects of cryptocurrencies and the tax system will depend entirely on how much adoption takes place, if almost everyone adopts cryptocurrencies then it's likely there is going to be so much fiscal evasion that governments are going to make them illegal but that will probably not stop all of those evading taxes, if this happened for long enough it's possible that governments will have no choice but to become smaller.

Is there actually a well functioning democracy? To me it seems like a rigged game all the way through, regardless of what country it concerns.

My overall net worth in terms of fiat value (concerns savings, stocks, bonds, precious metals, crypto, etc) gets taxed year after year after year. The government doesn't care whether you gained net worth or lost it, as long as your net worth tops their set limits, you'll get taxed. It's the worst possible form of theft, especially with how you can't do anything about it.

If you refuse to pay what's due, your bank accounts will be frozen, and they'll seize the income from your employer till your "debt" is cleared. That's why I'm glad 75% of my net worth is in Bitcoin. I efficiently made sure that they won't be able to ruin my life by freezing/seezing all my legacy assets and accounts.

Since no one can really tax them since it is fully transacted inside the blockchain, governments will have a hard time for it. Unless then can tax it through centralized exchanges.

Yes, it can be applied in all systems, especially taxes because the payment process is through many parties and long. With blockchain it can be faster, more accurate, transparent and permanent data.

Already we are paying double tax for what we are earning once,we need to pay taxes when we exceed the limits for an individual in all the countries which is called income tax and then we need to pay tax to all the things which we were buying so already double tax for the people in democratic countries too.So it is not fair the currency taxation system so it will be something beneficial for the people when we have blockchain technology implemented.

There are many wealthy families in the united states. The Rockefellers, the JP Morgans, the Trumps. With the Estate Tax (aka Death Tax) being 40% one may wonder how wealthy families maintain their familial wealth if they pay a 40% tax every generation. The most simple explanation is: none of them pay the 40% estate tax. Many of us were aware of this, long before it was mainstream news. It is old information and not particularly news worthy.

Part of the problem with taxation is those living in poverty, and those in higher income brackets up to the middle class, are losing political and social influence. The scales are tipping in favor of one percenters, which in turn increases their influence while diminishing the influence of all others. Tax laws shift in favor of one percenters, to the detriment of all other social classes, as society feels the implications of this paradigm shift.

Bitcoin's open ledger could make it harder to hide lump sums of cash from tax authorities. This doesn't necessarily represent progress however as taxation regulatory policies are designed to reflect favortism towards wealthier demographics, who wield vastly more monetary and political influence.

To fix tax laws requires shifting influence in the opposite direction. Such a thing is not easy to achieve.

A well-functioning democracy will not think about double taxing anything.

Taxes on inheritance are just stupid, that money has been already been taxed once and the parents have already been fleeced by the government, why tax it again. This is like that cartoon with Elmer and Bugs Bunny when from that 1 million inheritance he is left with a few cents.

And it doesn't matter how much that inheritance was, 1 million or 100$, it's still money that has been earned and taxed once. If you want a taxing system that is not disproportionate, have a flat tax, not a percentage.

Most of the wealthiest Americans avoid taxes by transfering assets to charity foundations,not to their children.Look at Bill Gates,Warren Buffet and many billionaires.
However,I'm pretty sure that taxation can be implemented inside the blcokchian,as a part of the transaction fee.Anyway,I don't think that such taxation will be implemented.

For the blockchain to be used to facilitate taxation. The individual has to have his assets in digital currency or represented adequately in the same ratio.
Anonymity would be a stumbling block.
And also bitcoin is decentralized, hence no taxes imposed on it, for now.

Transfers of wealth to kids or heirs is not entirely free of income taxes. It's subject to estate taxes which equal 50%+ of the value being transferred. This is precisely why the Trump family had to commit fraud to transfer their father's wealth to the kids. They couldn't even set up a trust that would protect all the assets from probate.

Blockchain can't change or circumvent government tax laws.

Blockchain can enable transaction tracking and transparency. Blockchain make payments incredibly fast and transparent. Blockchain can't ensure that people report their income accurately or truthfully.

They could do this by issuing closed source currency, but then again, most transactions are already digital, it just lacks an open blockchain.

As far as taxing foreign currencies and neutral ones like bitcoin, I don't see how, they can only tax exchange deposits.

But the wealthy will always have resources to circumvent taxes. They can hire the best accountants and lawyers in the world and find ways to avoid the cut. Also in some countries taxes are nonsensically high which only incentive that behaviour.

The recent exposé about the Trump family finances shines a light on the ways in which the wealthiest Americans can avoid estate and gift taxes on the transfer of assets to their children.

https://www.nytimes.com/2018/10/11/opinion/trump-bezos-estate-tax.html?action=click&module=Opinion&pgtype=Homepage

"Like Donald Trump, many of the Forbes 400 acquired some or all of their wealth from their parents. These transfers of wealth pass entirely free of income taxes."

The measure of a well-functioning democracy is a tax system that fairly apportions its burdens.

Can blockchain and the inevitable virtual economy make the taxing system less disproportionate?