(btw, i'm not 'fighting', just enjoying the discussion, and of course clearing up the understanding in my own head 
Re: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Tax-Responsibilities-of-Bartering-Participants
From what I understand from this,
Say, if you employed me and paid me in bitcoin, we'd both have to state it. Then pay tax appropriately? Yet, if I have no cash, how would I pay tax? would they insist that I pay the market value in fiat (of the total value I had earned)?
Probably, hope so. And that's part of the plan as far as I understand Satoshi.
Eventually they would realise that the £1,000 in tax (random number) I'd paid 2 months ago was only worth £700 now (as I'd still be getting paid the same amount in bitcoin as the value of fiat continued to drop). Sooner or later they'd realise they need to tax in bitcoin to avoid a massive loss.
At this point they adopt bitcoin as taxable itself. Which ever government does this first (when bitcoin is much bigger) would avoid losses first, and thus gain power over the other countries of the world, until the others follow suite.
Inevitable.
Re: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Tax-Responsibilities-of-Bartering-Participants
From what I understand from this,
Say, if you employed me and paid me in bitcoin, we'd both have to state it. Then pay tax appropriately? Yet, if I have no cash, how would I pay tax? would they insist that I pay the market value in fiat (of the total value I had earned)?
Probably, hope so. And that's part of the plan as far as I understand Satoshi.
Eventually they would realise that the £1,000 in tax (random number) I'd paid 2 months ago was only worth £700 now (as I'd still be getting paid the same amount in bitcoin as the value of fiat continued to drop). Sooner or later they'd realise they need to tax in bitcoin to avoid a massive loss.
At this point they adopt bitcoin as taxable itself. Which ever government does this first (when bitcoin is much bigger) would avoid losses first, and thus gain power over the other countries of the world, until the others follow suite.
Inevitable.