How do I avoid uncle sam to stick its hand in my cookie jar and takes the tax share?
What if I don't report it?
Face to face trades.
Of course, not paying your share into a system that you benefit from makes you a freeloader (or at the very least a leech).
I'll gladly pay the transaction fees/withdrawal fees of trading my bitcoins into USD and then transfering USD to my bank account.
I'm paying my share to the system I benefitted from, BTC that is. I didn't benefit from USD.
So you don't use roads? You don't take advantage of the electrical grid? You aren't protected by the US army? You won't receive social security?
/devilsadvocate
This. What your trying to do is one of the main reasons government is against Bitcoin. Pay your shit like the rest of us and be thankful your in a country like the United States.
I pay my taxes every year, bitcoin however is outside the government control. Worst case scenario I will withdraw in a tax haven account.
So if everyone uses Bitcoin, then how will all the services that are paid for with taxes be completed?
And don't get me wrong - I think the government could easily be 1/10th the size it is now, but I do believe that SOME form of government is essential for maintaining services like fire dept, police dept, roadways, utilities, national defense, etc.