11–20 of 35 posts
The article neglects that people have to pay income taxes on however many dollars of income you make. If you hypothetically made 100% of your income in bitcoins, and conducted all your financial transactions in bitcoins, then you would have 0 tax liability and wouldn't need dollars to pay taxes.
The article neglects that people have to pay income taxes on however many dollars of income you make. If you hypothetically made 100% of your income in bitcoins, and conducted all your financial transactions in bitcoins, then you would have 0 tax liability and wouldn't need dollars to pay taxes.
If your company buys you a house, you still pay taxes on it.
The article neglects that people have to pay income taxes on however many dollars of income you make. If you hypothetically made 100% of your income in bitcoins, and conducted all your financial transactions in bitcoins, then you would have 0 tax liability and wouldn't need dollars to pay taxes.
Do you want to save money on taxes? Then stop working for other people, start your own company or speculate on the markets, and take up philanthropy. Capital gains tax is a lot lower than income tax and charitable deductions are very generous.
People in the bitcoin community periodically worries about bubbles. The only thing that we can do is figure out cool stuff that you can only do with bitcoin. Other than that, people are encouraged to sell and buy things for bitcoin. A lot of cool stuff is in the pipeline though: 1. A decentralized DNS registration system utilizing bitcoin technology. http://www.bitcoin.org/smf/index.php?topic=6017.0 There's even a 35…
The article neglects that people have to pay income taxes on however many dollars of income you make. If you hypothetically made 100% of your income in bitcoins, and conducted all your financial transactions in bitcoins, then you would have 0 tax liability and wouldn't need dollars to pay taxes.
The article neglects that people have to pay income taxes on however many dollars of income you make. If you hypothetically made 100% of your income in bitcoins, and conducted all your financial transactions in bitcoins, then you would have 0 tax liability and wouldn't need dollars to pay taxes.
People in the bitcoin community periodically worries about bubbles. The only thing that we can do is figure out cool stuff that you can only do with bitcoin. Other than that, people are encouraged to sell and buy things for bitcoin. A lot of cool stuff is in the pipeline though: 1. A decentralized DNS registration system utilizing bitcoin technology. http://www.bitcoin.org/smf/index.php?topic=6017.0 There's even a 35…
Does community have expert economists? I mean the traditional currency markets have been around for quite a while and a lot of really smart people participated in their development. Bitcoin has a small and immature community and there are a lot of things which require certain expertise and experience to judge about correctly.
It really depends on what school of economics you followed. If you follow keynesian economic rather than the Austrian, you will have quite different conclusion about the possible failure mode of bitcoin.
Is deflation bad for the bitcoin economy? Most bitcoiners will say no because they don't buy the idea of deflationary spiral and Keynesian economics plus their experience within the bitcoin economy informs their opinion.
Two out of the three words of the title contain buzz words (CHECK!) Ok but seriously I don't see the "bubble" here. If this is a "bubble" what are the implications of it popping? The value is set by the people who exchange it and not by a governing authority or even, groups of people. As I understand it, that means the value can never be manipulated. Also, don't bubbles imply that there is some sort of governing body…
The primary problem with bitcoins as it stands now is that there is no oversight so any sort of price manipulation possible is legal.
The article neglects that people have to pay income taxes on however many dollars of income you make. If you hypothetically made 100% of your income in bitcoins, and conducted all your financial transactions in bitcoins, then you would have 0 tax liability and wouldn't need dollars to pay taxes.
They conclude that if they using something other than money as money, the law won't have a say because they are operating outside the precisely defined input.
Not so. The law can handle fuzzy situations, and since it can deal with subjective things such as what was in the minds of the people doing things, it will have no trouble incorporating Bitcoin transactions into the tax structure.
As a first pass, it could treat them as barter transactions, which are well covered by the tax system. In fact, there is a large body of law dealing with people trading non-currency items. It is quite interesting. Suppose I buy an X and you buy a Y. Later, we swap them. If they are the same kind of thing (we are trading my Picasso for your Rembrandt) there are no tax consequences. If I later sell the Rembrandt, it is taxed as if I had bought the Rembrandt for the price I paid for the Picasso, and so my tax is based on the profit based on that. Same for you.
If, on the other hand, X an Y are not the same kind of thing, then it is treated as if we did a pair of sales. For example, if I trade my Picasso for your race horse, the law would treat it as if I had sold my Picasso to you and used the proceeds to buy your horse, and you sold your horse to me, using the proceeds to buy the Picasso. I have to report income equal to the difference in value between the horse and what I paid for the Picasso, and similarly for you.
Subsequently when I sell the race horse, it is treated as if I had bought it for in the imaginary double sale, rather than whatever I paid for my Picasso. This price that you track in order to determine what the base price is to use when determining profit or loss on a real sale is called your "basis" in the item. In a like kind exchange, your basis in the received item is the same as your basis in the item you gave away. In an exchange that is not like kind, you get a new basis that is what you paid for the item in the imaginary double sale transaction.
There's case law and regulations dealing with all kinds of variations on this theme. For instance, if I trade my male horse for your female horse, is that a like kind exchange or not?
I don't think the law will have any trouble at all dealing with taxation and Bitcoin.