How would a government that runs solely on digital currency tax its citizens? It seems that, since it's very easy to create a new, anonymous address, tax fraud would be rampant.
Could a VAT-ish scheme be implemented - every transaction in the blockchain has a mandatory 0.2% fee (aside from the transaction fee) which is sent to the treasury? How hard would it be to enforce this?
>>53751414
not hard, but people would come up with a New system, so they Donat habe to pay these .2%. They just leave bitcoin.
>>53751499
Not talking about bitcoin or any other cryptocurrency in particular. I'm interested in a hypothetical scenario where a country abandoned paper money and made a cryptocurrency its official currency.
>>53751414
Federal Income Tax does not pay for programs - it is a myth that was dispelled in the 1980s by the Grace Commission. The same is true for any countries with a central bank.
Our tax code is so complicated that even IRS agents can't figure it out - it is magical thinking to assume that taxes are being calculated, collected and disbursed according to the government's official narrative.
Inflation is what pays for everything. The tax pays the bankers their counterfeiting fee. Attempts have been made for years to ramp up the "money laundering" and "muh terrorism" fearmongering to ban cryptocurrencies, but they are all kidding themselves.
The sooner technology puts an end to the central bank, the more likely it is fiscal catastrophe will be averted.
>>53751879
>how would taxation work with cryptocurrencies?
>m-muh banks!
M8 if I wanted to talk about banks I'd go to /pol/, I'm just wondering if taxation could be built into the system
>>53751919
Want to pay taxes? Give your bitcoin to the government - but you'll have to convert it to USD first, because that's the law.
That's the intent of bitcoin - to return the control of money to the person that earned it.
>>53751919
It would be stupid to build a taxation system into the currency itself because the currency doesn't know what it is buying or selling. If I go and buy a packet of cigarettes for 20 TRUMP coins, does the TRUMP coin network somehow magically know the tax rate of ciggies? Even if the network did know the tax rate of ciggies, i could tell the network that i'm buying tampons instead and avoid paying ridiculously high tobacco taxes! Even if you taxed every single transaction on the network, people would get pissed off and just use bitcoin or something else. That being said, my government somehow thinks they have the right to tax bitcoin sales so I guess my grandad was right: you really can't escape death and taxes.
>>53752617
No, God damnit, I'm not a crypto shill, I am not insisting everyone transfers to crypto, Dollar and IRS be damned, I'm just fucking asking. Fuck off.
>>53752750
Yeah, I've been thinking about that. What if you process those taxes in a regular way, but abolish income and capital gains tax etc and replace is with built in tax?
>people would get pissed off and just use bitcoin or something else.
Same thing about dollars, yet people still use them.
>>53751414
I don't see any reason why it could not be implemented to be honest.
It'd be possible today by using a smart contract and have it be deployed by 'the government', setting the address of the original sender as the 'government address' or even pass it a different address to which taxes should be sent.
>>53752909
Why don't YOU fuck off and go solve a more worthy problem? The government has far too much of our hard-earned money and labor as it is.
>>53752750
If you go out to a shop to buy cigs, the taxrate of those cigs would be added onto the total price by the POS software. The Trumpbux network wouldn't need to handle taxes, the business owners do.
It would essentially be like carrying around a debit card that you can't take your internet money out of.
>>53751414
The same way the government can tax cash transactions.
>>53752975
I guess an address associated to treasury, where it'll stay until ordered to move around. It's a single most vulnerable point, I suppose the private key would have to be held on an air gapped machine hidden somewhere deep.
>>53752984
> The government has far too much of our hard-earned money and labor as it is.
said the neet, sitting in his mom's basement, enjoying his neetbux welfare
>>53752985
My country has something similar to that to prevent tax fraud and those machines are a huge pain in the ass. I'd like something simpler desu, but that may be it.
>>53753055
Which is?
>>53753085
When you buy some shit at Best Buy with cash, do you think they will just ignore the sales tax?
>>53751414
>since it's very easy to create a new anonymous address
A government cryptocurrency would probably attach addresses to Tax ID Numbers from birth and be set up in a way where you can only get a new account if you're a victim of Identity theft.
As for taxes, I have no reason to believe that will change at all.
>>53751414
Same way you handled it when everything was done with cash. You'll have a rough idea when someone is fudging the numbers, you don't need to build it into the system.
>>53751414
No income tax but compensating service and sales taxes.
>>53751414
The same way you do now. Hard cash is just as anonymous, but fraud is not rampart as you'd like to believe.
>>53753106
So just keep it just the way it is now?
>>53753148
>>>53751414 (OP) (You)
>>since it's very easy to create a new anonymous address
>A government cryptocurrency would probably attach addresses to Tax ID Numbers from birth and be set up in a way where you can only get a new account if you're a victim of Identity theft.
That would be very dystopic actually, because of the public ledger. You may have anonymisation services, but that looks like going back to centralised financial system. I hope you are wrong.
>As for taxes, I have no reason to believe that will change at all.
Why not? US tax system is insanely complicated and it could be avoided by the most part by inserting taxation into money itself.
>>53753244
Can't move millions in cash across the world in one second though.
>>53753264
You're assuming a government cryptocurrency would work anything at all like Bitcoin.
Transactions wouldn't have to be public record, and Banks could work practically the same (with Visa and MasterCard like addresses that different from your own address)
Your Address given at birth would probably function more like a TIN than a bank account. Hell, the address given at birth would probably be where you pay the IRS.
>>53753571
Banks have been working on blockchain technology for their backend stuff for years now, the money in your bank account is going to be a cryptocurrency run by the bank and you won't even notice the difference. Not all cryptocurrencies are like bitcoin with a public ledger, the banks want their own private ledger they can share amongst themselves to facilitate transactions. We'll always be stuck with centralised financial institutions but at least we have decentralised alternatives like bitcoin. I hope decentralised cryptocurrencies will become mainstream to the point where I can buy a kebab with cryptocurrency using an nfc wallet on my phone because right now, the only thing I can buy with cryptocurrency is a vial of lsd on a darknet market. I'm definatly not saying that being able to buy lsd on the interwebs is a bad thing, I'm saying that cryptocurrency has a few issues that make it unsuitable for retail use such as double spending, long transaction times and extreme volatility.
