Senators move to exempt Bitcoin, crypto miners from proposed U.S. tax rules

Post by thesausageking » Thu, Aug 05, 2021, 4:22 PM UTC

drcode wrote: post #67

thesausageking wrote: post #57

Earlier quoted context omitted.

It's very unlikely there are US citizens in the US who are Bitcoin billionaires and have not reported it and paid taxes to the government. Unless you're planning to flee the country, at some point the IRS will catch up with you. Remember that Bitcoin is an open, public ledger of every transaction. If someone is a billionaire, paying capital gains taxes is worth their freedom without a doubt.

There is currently absolutely no requirement in the US to report crypto holdings, only crypto sales. So it is very likely there are such people, especially since it is common to divide large holdings between many separate addresses, making it impossible to infer holdings from sales income.

Post by dougSF70 » Thu, Aug 05, 2021, 4:25 PM UTC

slowmovintarget wrote: post #61

dougSF70 wrote: post #49

Earlier quoted context omitted.

I guess that is the worry of any government: money that could fuel the economy gets spirited away into dubious Crypto ventures - e.g. Dogecoin. BTC might be old news but it isn't a deliberate scam.

Wasn't Dogecoin originally intended as a joke, not a scam?

Post by animal_spirits » Thu, Aug 05, 2021, 4:26 PM UTC

meowkit wrote: post #84

animal_spirits wrote: post #76

> That means that the IRS will not be able to require that miners, stakers and companies that sell hardware or software for storing digital assets report the activities of their customers or crypto users whose transactions they verify. > In a statement, Wyden said that “investors failing to pay tax they owe through cryptocurrency is a real problem,” but that the law as previously written was too broad and would have…

You’re off base. The original definition was putting tax and KYC requirements on people who don’t have, and can’t get, that information. Network nodes facilitate transactions, they don’t broker them. Its like treating an exchanges electricity provider as part of the equity trade. It’s not tax evasion. The law as originally stated would have crippled the industry in the US.

Post by api » Thu, Aug 05, 2021, 4:32 PM UTC

ComodoHacker wrote: post #56

Tepix wrote: post #46

Earlier quoted context omitted.

I guess we need a proper CO2 tax to encourage better technology than proof of work

This would just increase the cost of electricity and thus the cost of living for everybody, and won't affect crypto miners much.

Post by overtonwhy » Thu, Aug 05, 2021, 4:35 PM UTC

dougSF70 wrote: post #2

Obviously HN community is down on crypto. This exemption is a sign that Bitcoin is getting closer to the mainstream of finance. Like most flanker-moves, Governments should be incorporating it in to their tax policies rather than shunning it. Cannabis is a good proxy, states can keep it illegal and not make tax revenue or they can legalize it, control it and tax it. The feds should do the same. Same for crypto, keepin…