Paying Your Taxes In STEEM???? Another State Considering It.
It is a very interesting time in the world of cryptocurrency.
On any given day, we see another bank ban the purchase of cryptocurrency using a credit card. The latest to join is TD Bank. Of course, we all know that even though they talk about trying to protect investors, that the banks main interest is to try and make purchasing crypto has difficult as they can. Since many people do not have liquidity, turning to credit is an option. While I believe it is stupid to buy anything like this on credit, it is the only way some people can get involved. Nevertheless, the banks are putting a stop to that.
Then we have the government. While there are calls for bans, regulation, and an assortment of other things, some states are looking to it as a way to get their tax money.
Earlier in the month, we saw reports that the Arizona State Senate passed a bill to allow people to pay their taxes to the state in bitcoin and other cryptocurrencies. This bill will be taken up by the State House and, if passed, go to the Governor.
Now we see the state of Georgia doing something similar. In fact, their bill mirrors that in Arizona mandating the state convert the cryptocurrency to fiat within 24 hours.
Senate Bill 464, introduced by Republican state senators, Joshua McKoon and Michael Williams, proposes that “[t]he commissioner shall accept as valid payment for taxes and license fees any cryptocurrency, including but not limited to Bitcoin, that uses an electronic peer-to-peer system.” The bill stipulates that once payments are received, the commissioner will convert the cryptocurrency to US dollars within a period no longer than 24 hours.
To me, this is another piece of news that shows how things are transitioning. In spite of the FUD we see each day, there are steps being taken all over the place that is pushing cryptocurrency forward. States taking it as payment essentially validates it as "currency". One of the reasons why fiat is so powerful is that government entities accept it as payment for taxes. The passing of bills like this will only further dent fiats hold while enlarging the prospects of crypto.
Wouldn't it be nice to be able to pay for that driver's license renewal using STEEM?
The reason I mention this particular currency is because of the zero transaction fees. When someone owes $2,500 in state income taxes, Bitcoin or something else might work. However, if one is looking to pay $35, the fees on Bitcoin might be prohibitive. Also, when paying taxes, one wants to make sure it gets there. The three second transaction time could also be of interest.
One issue people are starting to look at is the fact that by paying one's taxes in cryptocurrency could trigger to a larger tax bill since there could be gains on the crypto.
While initially the news may seem like a boon for crypto users, tax law expert Robert Wood wrote in an expert take for Cointelegraph that using cryptocurrencies to pay taxes could actually lead to paying more taxes, since gains in cryptocurrencies used for tax payments could themselves be subject to capital gains tax and investment income tax.
https://cointelegraph.com/news/us-georgia-next-state-in-line-to-accept-crypto-for-taxes-licenses
So what?
If I use the crypto to pay another bill or buy a new car, I am still subject to the same tax implications. Thus, I don't see why it is any big deal if the tax bill is triggered to pay one's state tax. It is going to happen sooner or later.
Which does bring up another point. If states start to adopt a cryptocurrency like STEEM as payment for taxes, then it starts the debate of it being a currency.
And currencies are not treated as securities.
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As a matter of principle, I wish we could not give government "our" money. I hope that as a matter of course, crypto becomes recognized more as a way to avoid being extorted. I think we will get there. I suppose there is value to this in that if what I suggest happens after they see crypto as legitimate, it would multiply the effectiveness of resisting that extortion. Either way, we are living in the most trans-formative moment in human history.
On a similar note, I think crypto will replace taxes as a voluntary way to pay for social programs. This will be more transparent, competitive and peaceful than the paradigm of State monopoly on social projects. When that starts happening, and it will, states will crumble quickly. I'm not sure that will be an entirely pleasant transition as the society has to grapple with the change.
Yes I agree with you. It's a very unnatural state right now to give our money away to a massive party that is suppose to protect our country. Why give our money away to a massive country when we won't really benefit that much from that trade? We would be much more happy to give our money to our community where we actually will benefit from it! So money should be going to our smaller community of let's say 150 people.
Now what is our community now that is a good question. Since we now have both an offline community and real world community where we live and enjoy life. Clearly the government have stopped to care that much about us as a person in a big country where we mostly just is a number. We males do not like that since it's not right that they have so much power over us to control things. We should have some power too.
I also agree with you that we are living in some of the most trans-formative times as far as we know. So many questions that will pop up now what is life and what our responsibilities here are. This comes up mainly because we are creating abundance so fast now. So people can pursue a bit whatever they want as a lifestyle. Clearly this will have major effect on society as a whole.
More competitive market that is also very true we are seeing it so much with the cryptocurrency industry. Over 1500 different ones talk about legit competition! And only the best will come out on top! I don't see any place for taxes as well in the modern world since things are getting so much cheaper all the time. We can clearly see a path towards more abundance as Elon Musk has talked about.
What an interesting concept this would be. If Arizona allows crypto for a means of paying taxes, it will be a big step in the right direction for the future and adoption of cryptos.
Thanks for letting us know about that. I knew a Senate bill had passed in Arizona and there is also legislation pending in Wyoming that is friendly to crypto assets but did not know about Georgia. I hope more states do this because that would make it more difficult for the federal government to implement laws banning crypto assets. I'm hoping we end up with something like we're seeing with the marijuana laws, except in reverse, where the states act quickly to legalize crypto assets so that it effectively ties the federal government's hands or at least limits its ability to ban crypto assets.
More info about some of the Wyoming legislation:
In a watershed moment for United States blockchain and cryptocurrency law, Wyoming’s House of Representatives unanimously voted “aye” to pass two blockchain bills – HB 70 the “utility token bill” and HB 19 the “bitcoin bill” – sending them to the State Senate for consideration. HB 70 defines utility tokens as neither traditional money nor securities; HB 19 exempts cryptocurrency from the 2003 Wyoming Money Transmitter Act (passed in the state before Bitcoin’s invention in 2008).
[snip]
https://bitcoinmagazine.com/articles/wyoming-house-unanimously-approves-two-pro-blockchain-bills/
It's very entertaining this whole thing since we have finally broken the monopoly of only the government be able to create money! Now geeks can create their own money! Clearly this is amazing. How hard is it really to create a Blockchain? Clearly this opens up for any person to actually create money!
But will they actually succeed in taxing all these things? Especially when people no longer will have to use bank accounts? Maybe the next step would be for geeks to create their own decentralized Blockchain bank? Yes this is giving me a headache too! It looks like it will take years before the government will get a handle on this. But then it will already be too late! Since innovation doesn't stop. It's only picking up speed!
Only way to stop this is to shut down the whole Internet. The authority of government is lost. What is their role in this new economy? In math we now trust when it comes to money. Not a emotional person with shady incentives.
Anarchy as a society is not a generally a bad thing. People tend to get organized for example: If I want a protection I will hire a bodyguard and will not rely on a police protection, but if I don't want protection why am I paying police?
Police is actually something that is already built into males. Every male being a police is the ideal situation. As you said people organize themselves very quickly into a system that works.
Males are hardwired to protect and provide. When you start to involve a third party like government police you start to remove trust in a family and the whole structure starts to fall apart. But for this to work you need to create smaller tribes.
Police is an attack on masculinity and tries to take their role away. Males are trustworthy and can run things themselves. That is my view on it. When males get more responsibility they will take better care of things.
Yes, right on the spot.
I don't want to sound sexist but some jobs are easier for certain gender.
And paying for some service that I will spend the rest of my life not using even once.
It is an absurd world where some celebrity makes millions joust for showing up and someone who will save your life will get a regural paycheck. But sorry I digress from the topic.
I know implementing cryptos on a day to day trading and living will make a huge impact on society. It will even start some changes that will lead to a better and more social society. All I'm saying people are not generally bad, and we tend to organize and function in a smaller group both as individuals (with some specialized knowledge) and as group (collective mind)
While the state legislators are wise to 'legalize' or 'legitimize' cryptocurrencies, there is a deeper concept here that must also be talked about; the legitimacy of the state and the coercive power of the state to demand, extort or coerce taxes from people.
I've spoken for years how our relationship with the state is an abusive one and that we all have the right to say 'no'. The consequences of that choice demands that we stand up and provide for our own needs and security. A journey that only a hand full have contemplated. But the implications of seeing our relationship with the state as an abusive relationship demands that we establish our own boundaries. As such, I will NOT be taking advantage of their attempt to gain any sort of jurisdiction over cryptocurrencies. That is the most dangerous part of their legislative enactments. They recognize that distributed cryptocurrencies sit outside of their jurisdiction and the moment they and we legitimize it with the state, we risk losing the currency to the fictional constructs that have been rendered impotent by the technology.
They need to make their minds up. One minute cryptocurrency is a speculative bubble, the next they are taking payments in it to pay taxes or auction off criminals crypto assets in order to profit from them. They can't have it both ways. They need to accept it for what it is: mainstream currency .
The dream would be no taxes at all because they find it too complicated to try to understand! Maybe they will just see it as value being shared. Eventually they will have to give up to the Blockchain and create their own. If you can't beat them join them!
Clearly a big problem is that they look at what other governments are doing. Nobody wants to be the first government to make a big mistake! I would love to see all governments open up their local Steemit account so I could transfer my 5% tax with 0 fee cost! People are tired of the 50% tax abuse that many western people have to pay!
I think I read that even Japan is considering taking/raising taxes in crypto currency.
The future is upon us.
But something else to ponder on:
How can Government take taxes on something they don't want to condone? This looking tax regime speaks to the fact that mainstream financial system will soon accept crypto currency as a legal means of transaction. It's almost here.
Governments are actually preparing for cryptos while playing games on media.
I already commented on another post that had this subject covered as well, but this is definitely good news.
The fact that tokens can pay taxes legitimizes the whole thing, and I'm eager to see Arizona's law getting completely approved, passed and applied. They do seem to be going in the right way.
Exciting times no doubt.
I'm curious what will happen once people start paying for things like second hand cars for example with crypto but they declare that they bought it with 5$ and pay taxes on that 5$. What will the governments do then? :)
Hey. I'm from Arizona and here is an update on the AZ Bitcoin bill as printed in 'Request to Speak' a publication for registered advocates (I am). It hit my mailbox less than 1 hour ago. This is as printed, don't take me to task for the commentary :)
"SB1091, sponsored by Sen. Warren Petersen (R-12), would allow the payment of income taxes using Bitcoin. US currency remains valuable in part because the government demands it in payment for taxes. Bitcoin, in contrast, has no intrinsic value at all (and hence an incredibly volatile price) and is highly susceptible to market manipulation. Arizona currently doesn’t accept any currency other than US legal tender. Why do this for the “naturally occurring Ponzi scheme” that is cryptocurrency? Its volatility would almost certainly have a negative effect on our state’s already cash-strapped revenue streams. Passed the Senate 2/8, with only Brophy McGee (R-28) crossing party lines. A House committee assignment is next. OPPOSE."
Thanks. Do you have a sense as to whether the bill will be passed in the Arizona House of Representatives, and if so, whether the Governor would sign it?
I think it will make it out of the House committee. I would say it has about 40% chance in the House, and if it gets through the Governor will sign it. My best guesses. I'd have gone a little higher but we just lost a member (R). Guy was an asshat and they booted him out of sexual misconduct charges. He was my rep :)