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RE: Using Blockchain to Pay Tax Debts: Can a “Bitcoin Tax” Fork (BTAX) Pay Your Tax Bill?
What if a person could receive a cryptocurrency fork that covers their tax bill legally, meaning the IRS gets paid and the person keeps all of their “pre-tax” earnings? This sounds like a win-win, if it is possible!
Not paying tax, and stopping the support of the thing that keeps you a slave, seems a much more logical choice, to be honest.
Is there a risk that someone could be literally enslaved by the government for not paying taxes (prison time for tax evasion, burdensome interest/penalties, etc.)? The IRS is literally monitoring blockchain, I can link you someone helpful articles from other authors that discuss this monitoring, if you would like. Let's boil this tax issue down, two avenues:
(1) Someone does not pay tax on Bitcoin gains, and risks interest/penalties/going to prison when caught; or
(2) Someone receives a free fork of cryptocurrency that can be cashed out for fiat to pay the government taxes as legally owed, and he/she ends up keeping all of the original Bitcoin gains (effectively no tax on the Bitcoin due to the free forked currency).
In substance, #1/#2 get to the same economic result (zero taxes paid either way), but #1 is extremely risky and more importantly illegal. #2 carries much less risk, because the government gets paid the taxes legally owed, and blockchain technology helped there be zero tax on Bitcoin gain via the free fork of currency.
I think if you give another read to the article, you may appreciate the beauty of #2, it accomplishes the objective of tax reduction by flipping the script on fiat taxation, kicking fiat in the teeth, fighting fire with fire , whatever one prefers to call it. Unfortunately, #2 is just an academic theory of mine, it doesn't actually exist/I assume no current plans for it. Either way, thanks for the feedback, it was an opportunity to add more color to the opening, and hopefully encourage a second look at the article. Good day and Steem on!