New Tax Plan = Outlawing Begins
Hey everyone and welcome to D Wings World: Where Information and Adventure Await! Today I am going to be looking at the 2018 Tax Plan that has gone into effect and what I believe it truly is to cryptos. Firstly, I am no expert and have only read over the bill several times, but I have also checked with others to see if my understanding of what the bill says is a correct interpretation. If you disagree or agree as always please let me know!
The new tax bill basically says that you must record all the transactions and the cost attributed to those in the United States Dollar at the time you do them. For instance, you buy $10 of bitcoin so you must log that you have put $10 in and I believe this includes your transaction fee. Move that $10 to Litecoin and you will have to again track that. So that $10 becomes $3 litecoin after that transaction so you now are showing a net loss. However, Litecoin takes off and you end up with $300 and decide to diversify into five or six different coins. All of these transactions and the amount they are work in United States Dollars must be documented. Everyone that deals with cryptos knows how ridiculous a task this truly is, and I believe that those writing the bill understood that too.
So why make it so confusing and difficult to trade in any crypto? Most here know that governments hate anything they cannot control because it scares them. If freedom is given then how will I make the little people do what I want? Really puts into perspective what social programs are really about, but back to the cryptos. The US government does not like crypto currencies, but they really don’t what to completely outlaw them either (we will get to this reason shortly). Hence, in order to push more people away from the cryptos that are out there they are not making it so hard to trade most will give up. Oh, you won’t stop or you won’t comply? Well to quote an Indiana Jones movie “Papers Please!” They will audit you to the point you wish you would have just stuck to fiat (yea that bad). This serves two purposes. It gives them a way to turn more people off of something they cannot control and a way to basically ruin anyone that would cause them a problem.
Interestingly, I don’t think they want to get rid of cryptos all together because they want to take them and make them a tool of the bureaucracy. This is backed by Trumps recent nominee to the FED stating he would like to go all digital with people only having a plastic card to access “real money” at the Fed. The government would like to issue its very own crypto and endorse it much like they do Fiat. This will take the place of Fiat and they will have access to your funds 24 hours a day and 7 days a week (lets face it once it went all digital it was never yours because you couldn’t keep it). They will do this the same way they introduced withholding taxes to the public. The Federal Government tried to do withhold taxes around the early 1900’s however the citizens revolted and it was quickly done away with. However, in the early 1940’s with World War II they found their reason for it again! The American people were told that in order to get funds to the war effort quicker they need to withhold taxes in their pay check, but it would go away as soon as the war ended (still waiting apparently). I believe this will be the same excuse they use to force us into a cashless society.
In short, be careful when dealing with this tax laws as it is gray for a reason. I may be completely wrong and this may not even be close to what may occur, but I really feel like I am not. Let me know what you think. Also, I will be touching on how this has effected my investing and my stacking in the future. As always thanks for taking a look and please remember to resteem, upvote, and comment! Thanks again! ~ D Wing
Wow D WIngs, this all sounds scary. I never really trusted cryptos and the rule of thumb in the silver community is "If you can't hold it, you don't own it." Words I live by! I honesty find the entire idea of cryptos very disturbing, it seems to be here to stay. We will just have to see what the future brings. Very interesting post. Thanks for sharing.
First off my friend, thank you so much for checking out my content! Secondly, I have worked with the government and many other entities that seem to believe the money they take from us in taxes is their money we are just basically place holders. What better way to fund your out of control spending (Cause you know they know what is best) then to have direct access to a source of wealth that as your said you never hold. They will just tell you here is an IOU and we are good for it we promise. They have been trying to do this for years with retirement accounts. A lot of our "representatives" think they should have access to those funds and you will get a government backed IOU or promise note that when you come to draw the money out it will be there. I believe that like I believe Socialism is a good idea (Side note: I don't think it in any shape form or water downed version is good). I hope you check out some of my thought to come my friend!!
This is why the crypto's with strong privacy will be very important in the near future!
I agree, but lets face it. All they have to do is either use the tax system to turn you into a criminal or make it a form of fraud to use any other cypto, but ones back by governments. This is why the Federal Government was supposed to be small. So that freedom could ring, but years of people thinking it should be a daddy and mommy has screwed us. Just my view. Thanks so much for your reply!!
I agree 100% thanks