Tax on Bitcoin depends on the country you live in but remember that the 20% is the standard tax bracket for any earnings below I think $25,000. If you have a job and then earn Bitcoin any side earnings could be taxed higher as this is implemented into some countries. If you go over a certain theshold which is usually tied to your household income which includes any other money you have made like fiat it could be taxed at 30, 40 or even 50% if you are earning hundreds of thousands every year.
For your question this is a fair policy because this is the amount that gets taxed on fiat income. Bitcoin is no different to other currencies. If you wanted to reduce the income tax on Bitcoin you would have to do the same for the others. Many of the population is looking to increase taxes on the rich and reduce the amount on poor and middle class people to close the gap further.
So many people are against tax but only a couple of them are legitimate concerns I think. One of the taxes I do not agree with is inheritance tax. When someone leaves money in their will to you all of this should probably go to you but depending on the country you live in you could be paying some hefty tax on that inheritance and the tax man will be laughing but otherwise I think tax is a good thing it usually contributes to your countries infrastructure and medicine. If you live in a third world country your tax is probably a lot lower but then the trade off is poorer living condition. It would be interesting whether this had any correlation between the two.
Slight differences between countries within the EU is perhaps understandable, but having discrepant considerations as to the nature of what crypto is effectively considered to be, and the discrepant criteria derived on its tax treatment, is just absurd.
Why do you think European countries are any different to American taxes compared to European? They are not one country and have individual laws and rules. The european countries are in a union and they decide common grounds but I don't think Bitcoin taxation should be in the discussion between countries. Germany looks the place to go if you have a large amount of Bitcoin though.
I don't think that's ridiculous. The government has set income tax according to how much is generated every month. If someone has income from bitcoin trading or other income, they will still pay income tax. What's wrong with paying taxes? We can enjoy the cleanliness of the city and the beauty of the park thanks to us paying taxes.
Taxes do get spent on the countries infrastructure but how much percentage actually goes in the back pockets of the politicians? Every country has probably had a scandal where a politician was caught spending tax money on personal items. There needs to be a decentralized or at least a transparent way of showing where tax money is being spent.
That's fair and if there's a law about it then you must pay that income tax or else the government will run to you. Government needs money to run the whole country, taxation is a must but if there's a corruption then that is the time for us to say that our government is really unfair. I do pay taxes, and I'm happy because of that little money I was able to help my country grown and feed more people who are really in need. Don't think about the bad side of the government, think that your taxes are for the poor people who badly needs the support of the government.
Does your government use your money to feed those without food? Usually the government spend tax money on fixing roads and giving money to charities. The charities are usually the ones that make soup days to the homeless or build new hospitals. In many countries you can get tax relief by donating directly to a charity and I think that might be the better option if you wanted to feed the poorer people of your country or improve the infrastructure because more of that money is probably going to get distributed without going in the pockets of politicians.
