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Actually, I wish we could burn down the IRS instead. I have to pay $1 of taxes to the US government for every $1 of Bitcoin I want to spend, because when I pull
by dheera 3y ago
Actually, I wish we could burn down the IRS instead. I have to pay $1 of taxes to the US government for every $1 of Bitcoin I want to spend, because when I pull it out of my Bitcoin wallet (hardware, software, exchange, it doesn't matter) they consider it a "taxable event" and I have to pay taxes according to it's USD value, which ultimately makes its ecosystem still tied to USD, and makes me reluctant to spend crypto because of the taxation. Total bullshit. I'm just spending a currency.
Singapore doesn't tax this, you can spend crypto and transact crypto and none of that is taxable.
- dragonwriter 3y ago> I have to pay $1 of taxes to the US government for every $1 of Bitcoin I want to spend AIUI, if the basis price of your Bitcoin was $0 and your marginal income tax rate was 50% and it was a short-term gain, that would be correct, but: (1) Your basis value shouldn't usually be 0 or close to it, (2) Where (1) does not hold, because you got Bitcoin when the price was near 0, it should usually be a long-term gain, on which you pay the lower LTCG rate, and (3) The top marginal income tax rate that you would have to pay to the US government is well below 50% to start with. > Singapore doesn't tax this, you can spend crypto and transact crypto and none of that is taxable. Singapore is, then, tax subsidizing crypto speculation, which seems like a phenomenally bad policy (but orobably sustainable, as long as the crowd that can afford to engage in it locally is small enough that the effective subsidy can be absorbed), but, I mean, you should absolutely feel free to emigrate to Singapore if they’ll let you if this is important to you.