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21 sats \ 1 reply \ @nullama 11 May 2022 \ on: Ask HN: How do taxes work in a hyperbitcoinized world? bitcoin
The first thing to notice is that currently there are in the world countries with no income tax. You can have a look here.
Hyperbitcoinization will take time to adjust, but it's coming. Right now in the largest economies Bitcoin is seen as an asset, still priced in fiat. So there's the capital gain tax.
In countries where Bitcoin is legal tender, like El Salvador, there's no such capital gains tax for Bitcoin.
Also note that this is already happening in other countries. For example in the UK gold coins do not have capital gain tax, because they're considered legal tender.
TCGA92/S21 (1) (b) of the Taxation of Chargeable Gains Act 1992 states that Sovereigns post-1837 and Britannias are exempt due to being classed as Sterling currency and thus legal tender coins. Sovereigns pre-1837 are considered chattels – personal possessions – and have been given a specific exemption.
It will be just a matter of time until laws are changed to accept that Bitcoin is legal tender, and therefore doesn't have capital gains tax.
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22 sats \ 0 replies \ @glix OP 11 May 2022
Right, but the government bodies still need some sort of income to run the country. If not income, they tax something else. They tax your property, your business, they collect road tax from when you buy a car or when you pay at a toll to use the highway, etc. You can't really have a functional government if they don't have funds to to perform their jobs.
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