Could higher taxes boost crypto? (3 Jun 2021)

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Could higher taxes boost crypto? (3 Jun 2021)

Postby aardvark_admin » Thu Jun 03, 2021 7:11 am

This column is archived at: https://aardvark.co.nz/daily/2021/0603.shtml

Could the move by G7 and G20 nations to wipe out tax havens see a huge surge in demand for and use of crypto-currencies?

If so, how will those government respond to the challenges that this would place on tracking revenues and wealth so as to apply the appropriate taxation?

Might crypto become illegal or highly regulated?
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Re: Could higher taxes boost crypto? (3 Jun 2021)

Postby hagfish » Thu Jun 03, 2021 8:58 am

Governments don't have to worry about having a 100% watertight technical solution, here. They have armies and prisons. Of course you can still break the law. Don't.

A possible template for what will happen is the response by India's elite when Modi got rid of all bank notes worth more than about five bucks. As in India, most 'wealth' isn't kept as sheafs of notes under the mattress, or even in bank accounts. The rich are still rich; the poor are still poor (and further inconvenienced).

From an ecological standpoint, I wouldn't mourn the end of crypto, but it's a speculative tool, not a stable store of value. I can't see swathes of property being cashed in for Dogecoin. Sovereign nations can enact whatever programmes they have the resources and desire to. This obsession with tax - 'but how do we pay for it?' - it's just an excuse not to.
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Re: Could higher taxes boost crypto? (3 Jun 2021)

Postby Geoffm » Thu Jun 03, 2021 9:55 am

Given the governments liek to be tax havens and have overseas companies resident there (and hence paying tax), I woner how well this will work. Ireland has done very well out of being the low tax centre of Europe and I can't see them giving that up.
I can't see the uber-rich being keeon on paying tax either. When you are that rich and wealth is mobile, paying tax is almost voluntary and they don't pay the top rate - that is for the little people.
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Re: Could higher taxes boost crypto? (3 Jun 2021)

Postby Perry » Thu Jun 03, 2021 2:45 pm

Ban.
Force.
Make illegal.
Oblige.
Ensure compliance.
On and on . . .

Seems to be those are the glib answers to all gummint woes.

Time (once again) to re-visit The Little Red Hen.

There will always be crims, but I wonder what would happen if the gummint decided to play fair with taxpayers in particular and the population in general?
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Re: Could higher taxes boost crypto? (3 Jun 2021)

Postby aardvark_admin » Thu Jun 03, 2021 3:28 pm

Perry wrote:There will always be crims, but I wonder what would happen if the gummint decided to play fair with taxpayers in particular and the population in general?

Oh come on... what's the point in having power if you don't abuse it? :-D
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Re: Could higher taxes boost crypto? (3 Jun 2021)

Postby phill » Thu Jun 03, 2021 4:20 pm

i cant see crypto being used as a wealth depository
its just not worth the risk of becoming an instant pauper at the drop of a server or hacker
then there is the inheritance problems ... if you want to leave it to someone in the result of your inevitable and unplanned demise .. you have to write down the details of how to recover it and leave it with an unbiased, impartial lawyer type ( cough till you spew ) and take on the risk of them being compromised ( more than they already are ) .. just not worth the risks
its only real use is transfer and speculation ... neither requires much investment unless your excessively greedy / stupid

as for tax havens .. it will just swap no tax havens to low tax havens
it will ( for the foreseeable future ) cost a company almost as much as it charges to provide a service in a high tax country as it does today
hence no profit and no tax .. the tax on the profit from that will be paid in the original provider country which will of course be in the lowest tax countries
( ,,,,,,,, ....... A E I O U use em sparingly theres probably not enough )

i might live and eat in a sewer .. but hey look how many of these shiny things i have got
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Re: Could higher taxes boost crypto? (3 Jun 2021)

Postby Perry » Thu Jun 03, 2021 5:45 pm

Perry wrote:There will always be crims, but I wonder what would happen if the gummint decided to play fair with taxpayers in particular and the population in general?
aardvark_admin wrote:Oh come on... what's the point in having power if you don't abuse it? :-D

Add a dose of cynicism, eh?

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