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Crypto tax evasion is 'pervasive'

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Re: Crypto tax evasion is 'pervasive'

#11

Post by throwing_away »

PretzelPirate wrote: post #7

And here I am being a fool paying quarterly estimated taxes on my staking income and capital gains.

I also pay my crypto taxes. They need to replace "non-compliance" with "non-enforcement" in this article.

In fact, I would love to see some of the "lol taxes" people have some enforcement action taken against them.

The only reason wage-tax "compliance" is so high is because there's a system in place to automatically extract as much tax as possible and make you file a refund for the difference.

I think you would find equal amounts of "non-compliance" in any cash or barter based business.

Re: Crypto tax evasion is 'pervasive'

#12

Post by bdcravens »

warkdarrior wrote: post #2

Isn't that by design? Many/most crypto schemes are designed to democratize access to money and thus they disintermediate traditional players (banks, central banks, etc.). Of course governments and tax authorities are one such traditional player, so they will be disintermediated. The government calls it "tax evasion", while the crypto world calls it a feature.

Most, if not virtually all, crypto users use exchanges, and unless they're conducting pure crypto transactions, or trading directly in cash, they use a bank at some point.

Re: Crypto tax evasion is 'pervasive'

#13

Post by xyzzy4747 »

tgv wrote: post #6
warkdarrior wrote: post #2

Isn't that by design? Many/most crypto schemes are designed to democratize access to money and thus they disintermediate traditional players (banks, central banks, etc.). Of course governments and tax authorities are one such traditional player, so they will be disintermediated. The government calls it "tax evasion", while the crypto world calls it a feature.

> democratize access to money Is that the latest euphemism? Tell me, where can I get the money? A lot of it, please.

Mining, airdrops, or minting your own

Re: Crypto tax evasion is 'pervasive'

#14

Post by OutOfHere »

bdcravens wrote: post #10
sealeck wrote: post #4

I think this is unsurpring given that the crypto userbase seems to consist mostly of speculators and criminals.

There's also a group that's against the Federal Reserve, but that belief system tends to be congruent with the "taxation is theft" group

> the "taxation is theft" group

Let's be real here. With compounding, total taxation takes away 90% of income. If that's not theft, I don't know what is. There would be an appropriate level of taxation that would be fair, perhaps 10%.

Re: Crypto tax evasion is 'pervasive'

#15

Post by bdcravens »

throwing_away wrote: post #11
PretzelPirate wrote: post #7

And here I am being a fool paying quarterly estimated taxes on my staking income and capital gains.

I also pay my crypto taxes. They need to replace "non-compliance" with "non-enforcement" in this article. In fact, I would love to see some of the "lol taxes" people have some enforcement action taken against them. The only reason wage-tax "compliance" is so high is because there's a system in place to automatically extract as much tax as possible and make you file a refund for the difference. I think you would find…

As do I, using Coin Ledger in years I've traded. Almost all transfers from crypto to fiat happen via exchanges and banks, and I can't imagine it would be difficult at all for the government to get their hands on a list of such ACH transactions.

Re: Crypto tax evasion is 'pervasive'

#16

Post by throwing_away »

sealeck wrote: post #4

I think this is unsurpring given that the crypto userbase seems to consist mostly of speculators and criminals.

Believe it or not, there are people that think real innovation is happening in crypto, and they also make investments and pay taxes.

If you search around for crypto tax software, you'll find there's actual demand from people that want to pay taxes on their crypto.

Re: Crypto tax evasion is 'pervasive'

#17

Post by throwing_away »

bdcravens wrote: post #15
throwing_away wrote: post #11

Earlier quoted context omitted.

I also pay my crypto taxes. They need to replace "non-compliance" with "non-enforcement" in this article. In fact, I would love to see some of the "lol taxes" people have some enforcement action taken against them. The only reason wage-tax "compliance" is so high is because there's a system in place to automatically extract as much tax as possible and make you file a refund for the difference. I think you would find…

As do I, using Coin Ledger in years I've traded. Almost all transfers from crypto to fiat happen via exchanges and banks, and I can't imagine it would be difficult at all for the government to get their hands on a list of such ACH transactions.

I believe that the amount of "untraceable" crypto that exists is extremely low.

Go try to buy some crypto in the US without KYC. It's already pretty tightly controlled.

Re: Crypto tax evasion is 'pervasive'

#18

Post by conradev »

warkdarrior wrote: post #2

Isn't that by design? Many/most crypto schemes are designed to democratize access to money and thus they disintermediate traditional players (banks, central banks, etc.). Of course governments and tax authorities are one such traditional player, so they will be disintermediated. The government calls it "tax evasion", while the crypto world calls it a feature.

Coinbase follows US law. They are designed to disintermediate traditional players like banks, yes, but not the USG. They are at the mercy of the USG.

Re: Crypto tax evasion is 'pervasive'

#20

Post by bdcravens »

OutOfHere wrote: post #14
bdcravens wrote: post #10

Earlier quoted context omitted.

There's also a group that's against the Federal Reserve, but that belief system tends to be congruent with the "taxation is theft" group

> the "taxation is theft" group Let's be real here. With compounding, total taxation takes away 90% of income. If that's not theft, I don't know what is. There would be an appropriate level of taxation that would be fair, perhaps 10%.

Currently less than 4% of Americans save any money. To assume that any would save enough to compound instead of spend in the absence of taxes is naive.
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