Supporting Bitcoin: Tax Evasion and Terrorism
If you support Bitcoin, you may be using the same system terrorists in ISIS are using. Is that something you want to do?
Anarchists already know that Bitcoin is a great way to evade paying taxes. In the current reporting structure, each transaction is reported as a loss or a gain when you spend a bitcoin, not when you acquire it. Places that take Bitcoin neglect to inform consumers of that. When approached, Nashville’s “Flyte” would not comment on the reporting requirements. If businesses informed consumers of the reporting requirements, they would lose the edge of saying they accept ‘Bitcoin’.
Anarchists don’t want to pay the same taxes we do, so that means we must pay more to make up for what they won’t pay. In addition, terrorists are proposing use of Bitcoin. According to Sky News, “Global Jihad Could Be Funded by Bitcoin“:
“According to the post: “This allows our brothers stuck outside of the ardh Dawlatul-Islam to avoid government taxes along with secretly fund the mujahideen with no legal danger upon them.””
“This system has the potential to revive the lost sunnah of donating to the mujahideen, it is simple, easy, and we ask Allah to hasten it’s usage for us.”
What do tax evaders, anarchists, and terrorists have in common? Bitcoin.
If you ask your average Bitcoin user if they understand the reporting requirements, the answer will be no.
According to Cointelegraph, “US Rules on Reporting Bitcoin Transactions Are a Nightmare“:
That means that legally, if you buy a cup of coffee with Bitcoin, you have to keep a record of that transaction plus the BTC/USD exchange rate on that day. Obviously, everyone familiar with Bitcoin’s sometimes-wildly fluctuating value will realize how much of a massive pain this will be.
Nashville’s Flyte restaurant was curiously quiet when informed about this. Most Bitcoin users and Anarchists want a decentralized form of currency, free from government hands and regulation. The way it works now, reporting is voluntary, there is no cross reporting for the government to check against as it does 1099 recipients. If you choose not to report your gains in transactions, the IRS will never find out. That is WRONG. With the current 1099 system for cash payments, the IRS can cross check and find non reported income.
The IRS needs to strengthen their regulation of Bitcoin and come up with a way to make sure people pay their fair share so the rest of us don’t pay more than our fair share.
Bitcoin users argue the system is broken and the government shouldn’t be involved but in the end as long as the current system is in place, I would argue they either need to ‘get with the program’ and act with integrity in reporting, or go to another country that better suits them. If you don’t like it, LEAVE. Don’t make the rest of pay more! As long as it’s the law of the land you need to obey it, not try to find ways around it. You are NOT above the law. Why do you need anonymity unless you are a terrorist or tax evader??!! The dollar works fine. But it’s traceable. Why do you need decentralization? What are you all really up to?
Bitcoin users clamor for anonymity. But Cryptocoinnews reports Bitcoin users true intentions in a new article, “GOOD BYE TRADITIONAL BANKING SECRECY, BITCOIN TO THE RESCUE“:
Bitcoin and the New Banking Secrecy
It’s interesting to speculate of the impact of the end of banking secrecy on the emerging Bitcoincrypto-economy.
It doesn’t seem too likely that wealthy tax evaders will suddenly decide to become good citizens. On the contrary, it’s much more likely that they will look for new ways to store their wealth out of sight of the international tax authorities.
The Bitcoin world, and especially the Bitcoin underground of anonymous and untraceable transactions based on altcoins (e.g. Darkcoin) and anonymizers (or new privacy-orientedsidechains), seems an evident place to look for new forms of banking secrecy.
In reality, though, the IRS will have a difficult time tracking any of this. Bitcoins offer near anonymity, because computerized wallets aren’t tied to actual individuals. So, while following the law will be annoyingly difficult, there’s little chance of a crackdown on the average Joe.
“Nobody in their right mind would ever comply with that,” said Steven Rosenthal, senior fellow with the Tax Policy Center. “The IRS can’t even get the information they need from normal consumer purchases.”
This is what Bitcoin Anarchists are counting on. In the end I’ve yet to meet a Bitcoin user who also isn’t anti-government and Anarchist. Bottom line, until the IRS can really get a good handle on collecting taxes on Bitcoin and businesses like Nashville’s Flyte respond to simple inquiries about Bitcoin reporting, it seems a bit ‘criminal’ to me.
Sound confusing? That should tell you all you need to know about Bitcoin as an investment. If you don’t “get” it, don’t get it.
Sounds great to me Dave!