No. It won't kill income tax. The taxes we have to pay for purchases is a lot.
Even if I have to give 0.01$ to my friend , including the fees and all I will have to pay around 0.15$.
That's a lot of fees/tax. But in the near future if this problem is solved , then it might kill income tax.
You are not paying tax to governament. You are paying transaction fees to third party site. They will charge that amount to send your coins to another person. This is the third party site income. If you pay the tax directly to governament, then they will not disturb Bitcoin, and they will allow Bitcoin as legal currency in your country.
I think you are wrong because the governments are aware about bitcoin and they will adapt the tax system. This is not very difficult for them cuz everything is under their control.
Yeah that's true. Governments are much awake watching every moment of bitcoin. So if they are in plan to Levy taxes sure in a short will make regulations and make people get adopted to it. Recently one country have added bitcoin to the taxable assets list. Bitcoin killing taxes will not be much effective.
Maybe the least country will entertain this Bitcoin. Already existed countries will not entertain this Bitcoin.