I was watching a news clip today where US Treasury Secretary, Janet Yellen had some bright ideas about taxation. especially with crypto. Her idea is to tax your gains even if you haven't sold into FIAT. That is purely ridiculous to even have that as a thought as it shows ignorance in the extreme. I have thought maybe they are saying these things to create some FUD and panic as people cannot be this stupid and maybe they are being smarter than what you and I think. Nah maybe not as maybe that is giving them too much credit and they are way thicker than what we could ever imagine.
Can you imagine investing into something that does 10 x or 100x and then hits a dip losing 50% within a week. You could be in for some serious losses with the receiver if this was a genuine tax ruling. Your investment may have been up $100k but now it is only 40K. We saw that with Hive not so long ago as it was only just over 3 weeks ago that this kind of thing played out.
$1.48 became less than 80c and in theory could be paying tax on the difference but we know that is never happening as we are decentralized and they have no clue who @cryptoandcoffee or any of us really is. Not so lucky on the exchanges though if they are talking to your respective Governments handing over your KYC information.
Surely sense has to prevail at some point as logic should be when you withdraw you pay taxes on the profits earned on that particular crypto. If you invested $100K everything over that amount you must pay tax on if and when you withdraw. taxing somehting that could go up or down as that just doesn't seem really fair and is a one way street.
Would they reimburse taxes if you had some bad trades where if you owed them for example $50K and after some volatility you were now in the negative. That would never happen and why the way they are even thinking is purely wrong and angled to screw everyone.
Thankfully I am not in The States but what I have noticed especially with Crypto is other Governments are just as clueless so they are happy to follow. One Government says something like we are doing this for your protection and that is all we here from other governments around the World. This type of tax law just cannot even make it to discussion as for them this is marvelous and a huge money spinner.
When you see news clips and stories like this appearing all it is going to do is make countries who are crypto friendly look even more enticing. I have no qualms having another Nationality as I already have 2 passports so would happily add another if it comes to it. Over the next 2-3 years we will see loopholes appearing as there will be grey areas or safe havens that are legitimate and above board. I have always said once I have a clear head I am going to investigate this thoroughly and will be traveling sometime next year doing just that. Maybe the @leofinance team or community has some ideas on what is possible as there has to be some.
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Everything I’ve read about this calls it a “billionaire tax” that would apply to about 1,000 people. The most recent census put the population at 331,449,281.
Right or wrong, I’d guess that the other 331,448,281 people mostly won’t be strongly opposed to the idea of somebody else paying higher taxes.
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I just don't trust things when they don't make sense and even if it was for the ultra rich surely there is a better system. If it was accepted then who knows it could be widened as a general rule for crypto.
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Oh, sure, lots of things could happen. My understanding is that the super-rich wouldn’t be reporting their own unrealized gains, the much-loved IRS will be doing it for them. That’s not something they’d be able to scale up easily.
And if they tried to expand it to a significant chunk of the other 331,448,281 people, blowback would be massive.
Meh. For what it’s worth, I’d guess that the IRS’s days are numbered, as are those of the USA itself.
Well in theory we could have an actual progressive income tax instead of just pretending we have one. But I'm not holding my breath.
If they pull that shit just imagine the fight they will have on their hands. These people feel untouchable lately but seriously they work for the people and they need a reality check in this. If they bite too hard on Crypto I have a feeling they are going to get one hell of a backlash. F'in tired of these few losers in office seriously.
Every time Janet Yellen opens her mouth, I am floored with the dumb things that come out. How can it possibly be fair to tax your unrealized asset gains? This will kill innovation and business investment, and doesn't make sense if you think about it even for a minute.
I honestly think they are just throwing random stuff out there right and hoping to see what sticks. I hope that this one will not gain any traction. As you said, that could be a very bad thing. They might as well lock me up now if that is the case!
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