Post
Topic
Board Economics
Re: How will blockchain affect the taxing system?
by
mu_enrico
on 13/10/2018, 19:23:28 UTC
It doesn't matter if you wanted to say DAO and not ICO the whole idea that we need something blockchain related for people to cast an electronic vote is childish. Two years before bitcoin was even born we had a whole country using a cryptographic vote in their election. So, no need for tokens, blockchains, ICO, DAO, or AOE.
If what you mean by "childish" is having imaginations then yes, voting on a blockchain is childish. I saw how ETH smart contracts enabling "carbon vote" and realized how cool it was.

Second, people have this weird idea that once cryptos take over governments won't be able to tax you. Seriously? Governments were able to tax you when there were no credit/debit cards when there were no cash registers and receipts, there were able to tax you even when there was no fiat!!!!

What do you think it will change if cryptos take over?
It is not weird though, I reckon Obama also worried about the "Swiss offshore account in your pocket."

A company will still need to employ people and pay them and have a balance sheet ready for fiscal inspectors, they will need to declare what they pay you, if they fail to do so, they are going to be in trouble and they won't risk millions for pennies.

Same for stores, they will have to declare what they have sold and they are going to pay both the VAT and the tax on profits otherwise they are going to be in trouble.
Of course, you can hide the income for 100 beers sold today, but how the hell are you going to hide the fact that you purchased and sold those 100 beers when both the beer factory and the customers will demands receipt for those?
I know about accounting, it has to be audited. The way the government detects corporation's fishy behavior is by sniffing corporation's, shareholders', and officers' bank account. Without access to the actual balance/accounts, tax enforcement would be difficult.

This wet dream that suddenly the government won't be able to tax you once you deal in crypto is nothing more than a dream, and a pretty silly one from my point of view.
Maybe you just need more imagination lol. It is silly for now, but I won't dismiss the possibility of these things to be true just because it seems impossible for now, even if the odds are so small.