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With a truly crypto/defi setup, nobody would have to pay taxes. Everything would be zero-sum and no one would be incentivized to have to pay taxes to a central
by randomopining 5y ago
With a truly crypto/defi setup, nobody would have to pay taxes. Everything would be zero-sum and no one would be incentivized to have to pay taxes to a central party to ensure the things you just listed exist.
If you are rich and have 1000 BTC in various wallets, able to avoid capital controls, etc... why would you pay the 45% biden cap gains? Thus society loses out and rich whales get to hodl
- Jiocus 5y agoYou describe a problem that is beyond any particular technology of choice in tax evasion. These problem already exists in society, and has existed since before the advent of cryptocurrencies. Tax evasion, in the individual style you describe, can be detected in lifestyle choices and consumer habits. Generally, the burden is on you to explain how you've been able to spend more than your official tax records report.
- randomopining 5y agoYeah so? Crypto improves the ability to evade. You must agree with that. Thus it will increase the problem of people benefitting from society but not paying back into society. Taking resources that would never be able to grow in a vacuum.
- Jiocus 5y agoNo, I don't share that view. I think cryptocurrencies seem, at most, equal to conventional evasive techniques, maybe even less useful when factoring in the hoops and overhead in actually translating the funds into real world goods and services. It's also unknown what the future holds in regard to effective tracing capabilities, retroactively, by law enforcement and agencies. My view is based on crypto and society ‘as is’ today. I would have to imagine a different society, with a radical adoption of crypto, to support your argument. But I would if that was the case.