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They aren't charging a tax on cash. But if you exchange a large amount of cash, they will look up your past income tax records and if it doesn't line up with th

They aren't charging a tax on cash. But if you exchange a large amount of cash, they will look up your past income tax records and if it doesn't line up with the amount of cash you have then you get taxed. Indian has a problem with large hoards of cash being used to evade taxes. This is basically a come to Jesus moment for tax evaders with these hoards. It is a pretty crazy policy, but this article glosses over some major points.

jacobolus 10y ago
There are plenty of folks who think that the US should phase out $100 bills and Europe should phase out €500 bills for essentially the same reason: they are used primarily by people trying to do very large transactions in an untraceable way, which has big overlap with money laundering, drug deals and other illegal purchases, tax evasion, etc. Most day-to-day cash transactions work perfectly fine using $20 bills. See e.g. https://www.washingtonpost.com/news/wonk/wp/2016/02/16/its-time-to-kill-the-100-bill/ https://www.washingtonpost.com/news/wonk/wp/2016/02/16/its-t... > [...] illicit activities are facilitated when a million dollars weighs 2.2 pounds as with the 500 euro note rather than more than 50 pounds as would be the case if the $20 bill was the high denomination note.
- macrolide 10y ago
  Let's see the US government do it; it'll be the end of the dollar. People around the world presently rely on the dollar; they'll eagerly move to an anonymous cryptocurrency (not Bitcoin).
- patrickk 10y ago
  80% of US currency is in $100s[1] The ECB is getting rid of the €500 note[2] [1] http://www.npr.org/sections/money/2014/08/14/340356790/should-we-kill-the-100-bill http://www.npr.org/sections/money/2014/08/14/340356790/shoul... [2] http://www.nytimes.com/2016/05/05/business/international/ecb-to-remove-500-bill-the-bin-laden-bank-note-criminals.html http://www.nytimes.com/2016/05/05/business/international/ecb...
- tdkl 10y ago
  > they are used primarily by people trying to do very large transactions in an untraceable way And ? I don't want my large or small transactions traced, monitored and monetized upon the untouchables called banks and I don't understand anyone who agrees with this but otherwise supports freedom and anonymity in tech. The whole thing is just an excuse for more control.
  - deleted 10y ago
    [deleted]
  - jacobolus 10y ago
    Using $20 bills wouldn’t make your all-cash transactions impossible. It would just make e.g. tax evasion, drug purchases, money laundering all a bit more cumbersome and conspicuous. The burden would fall heavily on illicit transactions, while only slightly impacting most cash users, if at all. (I’m not advocating for this, merely linking it as topical to the discussion.) See Ken Rogoff’s NBER paper http://scholar.harvard.edu/rogoff/publications/costs-and-benefits-phasing-out-paper-currency http://scholar.harvard.edu/rogoff/publications/costs-and-ben...
    - lostboys67 10y ago
      Quiet a lot of Europeans buy cars in cash why not ban private ownership of gold and silver coins while your at it as well.
      - shiven 10y ago
        You mean like this? https://en.m.wikipedia.org/wiki/1933_double_eagle https://en.m.wikipedia.org/wiki/1933_double_eagle
        mullen 10y ago
        Poor example. The government produced a coin and then ordered all of them melted down but 2. When 20 showed up, it is clear they were stolen and the government claimed their property. As a tax payer, I think this is a good idea.
aq3cn 10y ago
Most importantly it will discourage the culture of bribing.

jacobolus 10y ago

There are plenty of folks who think that the US should phase out $100 bills and Europe should phase out €500 bills for essentially the same reason: they are used primarily by people trying to do very large transactions in an untraceable way, which has big overlap with money laundering, drug deals and other illegal purchases, tax evasion, etc. Most day-to-day cash transactions work perfectly fine using $20 bills. See e.g. https://www.washingtonpost.com/news/wonk/wp/2016/02/16/its-time-to-kill-the-100-bill/ https://www.washingtonpost.com/news/wonk/wp/2016/02/16/its-t... > [...] illicit activities are facilitated when a million dollars weighs 2.2 pounds as with the 500 euro note rather than more than 50 pounds as would be the case if the $20 bill was the high denomination note.

macrolide 10y ago
Let's see the US government do it; it'll be the end of the dollar. People around the world presently rely on the dollar; they'll eagerly move to an anonymous cryptocurrency (not Bitcoin).
patrickk 10y ago
80% of US currency is in $100s[1] The ECB is getting rid of the €500 note[2] [1] http://www.npr.org/sections/money/2014/08/14/340356790/should-we-kill-the-100-bill http://www.npr.org/sections/money/2014/08/14/340356790/shoul... [2] http://www.nytimes.com/2016/05/05/business/international/ecb-to-remove-500-bill-the-bin-laden-bank-note-criminals.html http://www.nytimes.com/2016/05/05/business/international/ecb...
tdkl 10y ago
> they are used primarily by people trying to do very large transactions in an untraceable way And ? I don't want my large or small transactions traced, monitored and monetized upon the untouchables called banks and I don't understand anyone who agrees with this but otherwise supports freedom and anonymity in tech. The whole thing is just an excuse for more control.
- deleted 10y ago
  [deleted]
- jacobolus 10y ago
  Using $20 bills wouldn’t make your all-cash transactions impossible. It would just make e.g. tax evasion, drug purchases, money laundering all a bit more cumbersome and conspicuous. The burden would fall heavily on illicit transactions, while only slightly impacting most cash users, if at all. (I’m not advocating for this, merely linking it as topical to the discussion.) See Ken Rogoff’s NBER paper http://scholar.harvard.edu/rogoff/publications/costs-and-benefits-phasing-out-paper-currency http://scholar.harvard.edu/rogoff/publications/costs-and-ben...
  - lostboys67 10y ago
    Quiet a lot of Europeans buy cars in cash why not ban private ownership of gold and silver coins while your at it as well.
    - shiven 10y ago
      You mean like this? https://en.m.wikipedia.org/wiki/1933_double_eagle https://en.m.wikipedia.org/wiki/1933_double_eagle
      - mullen 10y ago
        Poor example. The government produced a coin and then ordered all of them melted down but 2. When 20 showed up, it is clear they were stolen and the government claimed their property. As a tax payer, I think this is a good idea.

aq3cn 10y ago

Most importantly it will discourage the culture of bribing.