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

marketwatch.com

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

#91

Post by jonathanpeterwu »

Tepix wrote: post #46
danielvf wrote: post #22

Finally found the text of the amendment: https://www.finance.senate.gov/imo/media/doc/Wyden%20Lummis%... The amendment is short and explicitly notes that that the following categories do not count as brokers: (A) validating distributed ledger transactions (B) selling hardware or software for which the sole function is to permit a person to control private keys which are used for accessing digital assets on a distribu…

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

We should probably also find a way to tax US dollar usage with CO2 tax as the net energy usage here is quite high as well

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

#92

Post by nitrogen »

nprz wrote: post #54
amalcon wrote: post #32

Earlier quoted context omitted.

Because they typically operate out of jurisdictions that don't feel like prosecuting them.

Why not just ask for a paypal or a wire transfer then? If they don't care about revealing their identity?

Those are usually easily reversible.

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

#93

Post by purple_ferret »

> The changes will lead to the bill raising $5.2 billion less than the $28 billion envisaged by the initial legislation, according to a Politico report citing the Joint Committee on Taxation.

How do they come to this conclusion since taxes are still owed? Just that they expect about 5 billion in tax evasion from this?

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

#94

Post by davidlee1435 »

KingMachiavelli wrote: post #41
drcode wrote: post #4

It seems rather unprecedented that there are currently US citizens who are billionaires because of their crypto holdings, without the government having any insight into precisely who these people are. It seems like eventually the government is going to push for more onerous reporting laws to return to the usual equilibrium, where the government has at least some basic idea regarding who owns what (which I think they…

It's not a big deal. It isn't that different than finding a significant amount of oil/precious metals on your land. As soon as you try to extract the value of the resource/crypto, the government will know. If you just sell it, the crypto exchange will report it to the IRS. If you try to trade/buy goods with it directly, any assets you get will create a paper trail that the IRS will eventually discover. Consider the f…

> And if you quit your job prior to selling (i.e had ordinary income Not a tax advisor, but I thought capital gains counts as taxable income? So someone who sells $50k worth of BTC will pay 15% on $10k.

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

#95

Post by admax88q »

api wrote: post #87
ComodoHacker wrote: post #56

Earlier quoted context omitted.

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

The parent is simply pointing out that all consumption taxes are regressive. A CO2 tax by itself is a tax on the poor, especially the rural poor who have longer commutes and are more dependent on automobile travel. A CO2 tax is only fair if it's paired with progressive tax breaks in other areas and/or subsidies for transition to renewable energy. An example would be a progressive subsidy for electric vehicle purchase…

A CO2 tax and rebate is progressive. The poorest people would receive more back in a rebate than they pay. But the biggest CO2 users would pay way more than they receive back.

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

#97

Post by tornato7 »

whichquestion wrote: post #86
sputknick wrote: post #52

Earlier quoted context omitted.

ETH PoS mainnet transition is underway and will be completed early 2022. With this holders of ETH will be able to earn fees from transactions, just by running an application on their standard normal computer. The only encouragement you need to move off of POW is profit motive.

Hasn’t PoS been something “in the works” for ETH for something like 6 years now[1]? I don’t think anything guarantees its delivery in early 2022, it all seems like hopeful speculation until they deliver something. [1] This stackexchange question dates back to 2016, the earliest evidence I could find of ETH proposing PoS. https://ethereum.stackexchange.com/questions/9/why-does-ethe...

This time it's very different. There are billions of dollars of ETH locked up in the staking contract, and proof of stake has been live and operating on the beacon chain for many months.

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

#98

Post by purple_ferret »

jb775 wrote: post #90
Tepix wrote: post #46

Earlier quoted context omitted.

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

If you use your brain to think through the initial 3-4 domino effects of a carbon tax, you'll quickly realize that the end result is the little guy paying the actual tax via inflation while the big guy actually enjoys larger profit totals (maintaining profit margin % on newly inflated prices = more profit). The tricky part is actually using your brain to think it through.

Carbon tax is about transitioning away from carbon. If you're afraid about the little guy, couple it with a tax cut on lower incomes.

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

#99

Post by gruez »

jb775 wrote: post #90
Tepix wrote: post #46

Earlier quoted context omitted.

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

If you use your brain to think through the initial 3-4 domino effects of a carbon tax, you'll quickly realize that the end result is the little guy paying the actual tax via inflation while the big guy actually enjoys larger profit totals (maintaining profit margin % on newly inflated prices = more profit). The tricky part is actually using your brain to think it through.

>you'll quickly realize that the end result is the little guy paying the actual tax via inflation while the big guy actually enjoys larger profit totals

What's the alternative then?

Implement regulations, forcing companies to increase costs => "enjoys larger profit totals "?

Tax companies only, forcing them to pass them onto consumers => "enjoys larger profit totals"?

Do nothing?

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

#100

Post by mjburgess »

jb775 wrote: post #90
Tepix wrote: post #46

Earlier quoted context omitted.

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

If you use your brain to think through the initial 3-4 domino effects of a carbon tax, you'll quickly realize that the end result is the little guy paying the actual tax via inflation while the big guy actually enjoys larger profit totals (maintaining profit margin % on newly inflated prices = more profit). The tricky part is actually using your brain to think it through.

https://www.economicshelp.org/blog/139283/economics/what-is-...
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