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From the Russ Roberts podcast (goo.gl/mNcQW), they discuss the tax issue. Apparently you're not taxed on bitcoins.
by tgrass 16y ago
From the Russ Roberts podcast (goo.gl/mNcQW), they discuss the tax issue. Apparently you're not taxed on bitcoins.
- nhaehnle 16y agoNot right now, but that is simply because the volume isn't large enough to have attracted government attention yet. There was a case some years ago in Germany where something similar happened. A local initiative introduced a local fiat currency, and initially people did not pay taxes on sales etc. in that currency. At some point, this got the government's attention, and soon after that, the tax advantage was gone. People had to pay their taxes in Euros. Something similar will happen to BitCoin if it takes off. It may be somewhat harder to enforce for the government, but then again, paper cash transactions are anonymous, too. You still pay sales tax when you purchase something with paper money. There is no truly fundamental difference here to how BitCoin works.
- Tichy 16y agoI think the same happened to Linden Dollars (Second Life). However, I don't see a problem, as presumably they can only tax you on the corresponding dollar value of the currency. Like if you earn 1000 BTC and they are worth 1000$ at current rates, you are taxed for 1000$, if they are worth 0$, you are taxed for 0$.