Reading up this morning on tax filing procedures for crypto here in the land of the rising sun.
While I will be feeding the wolves something to keep them away from my family and I, I have other plans in place (all in accordance with applicable law, of course) to feed myself, as well.
Of course, anytime you have an individual or other entity (in this case, the "state") putting its fingers into a pie it didn't bake (they always do) the situation is an unethical and immoral one according to basic natural law property rights. That is to say, if I take my neighbor Joe's apple pie from his window sill, it is immoral because Joe's body is his own, and thus the labor he mixed with the previously unowned raw materials/ingredients using said body renders the new product (the pie) his own. Even if Joe hadn't ground his own flour, etc, and had purchased the ingredients for the pie from the store, the situation remains the same. Joe would have worked for the money with which he made the purchase using the actions of his body. He would have exchanged his money for the storekeeper's ingredients in a fair and voluntary trade. Thus, it can only logically follow that for me to take Joe's pie is to violate his self-ownership and in essence to claim I own him as a slave, at least in part.
Paid for by tax dollars. This is the height of civilized society?
A return to dignity: my view of the meaning of crypto.
Bitcoin was created in response to the economically absurd, inconvenient, violent, dehumanizing and downright evil actions of various nation states in regard to money and currency. When I say "evil," I mean it. Perhaps I should define that. When I say "evil" I mean " a perversion of natural order and natural law." Which is to say, a blatant, calculated, unapologetic and brutal denial of the immutable biological and metaphysical reality of individual self-ownership.
Bitcoin and other cryptocurrencies have been created as a means by which humanity might return to sound economics, and by way of this, to a recognition of intrinsic human dignity. There is nothing honorable about being stolen from. Sound economics recognizes that each human being is a self-owner, and thus has full natural rights to the free and uninhibited exercise of his or her property, insofar as said exercise does not impinge on these very same rights of others.
What we see emerging now with nation states attempting to clamp down and tax (often at unbelievably exorbitant rates) the crypto holdings of investors, speculators, and simple users around the world, is the inevitable attempts of violence-based political entities (all modern, mainstream-recognized countries are) to keep power from leaving their hands and re-entering the hands of individual actors in a non-coercive free market. I think giving an example of how de-humanizing the current paradigm is to the individual might be advantageous here.
Think of the last time you received a paycheck from your employer. If you took the time to read all the deductions called "taxes," how did you feel as you read over them? Did you feel good knowing that the money you worked for had been taken without your consent, and that you had absolutely zero choice in the matter, and on top of that, that you had no choice in how the money would be spent, either?
Some people say they are happy and proud to pay taxes. Interestingly, none of them are hurrying to offer more, but are intensely interested in maximizing deductions. All humans with a working moral compass realize that to take money--FOR WHATEVER PURPOSE--from another individual without voluntary consent is theft. If I hold a gun to your head to extort funding for St. Jude's Children's Hospital my act is immoral all the same. If you think the metaphor of a gun is too strong, just try not paying taxes and resisting, when the state comes to collect them and/or you.
Now think of the first time you made a crypto transaction, paid in Bitcoin, or received some crypto from a friend. Think of your first sizable Steem payout. The transaction was immediate, wasn't it, with no middle man or third party entity attempting to arbitrarily take some of what you had worked or traded for. It felt good, didn't it? You put in the work. You got the full compensation. It is a simple balanced equation. This is sound economics, and this is an exchange that honors basic human dignity. Questions such as "Who will build the roads?" or "What about welfare recipients?" are irrelevant here. That is a matter for the free market to solve. What we DO KNOW FOR CERTAIN is that THEFT is always IMMORAL.
Actually, one of the main things the state is afraid of is generosity. That is, the real profusely generative nature of non-coercive, free market wealth. Just take a look and analyze the myriad charities, initiatives, support groups, and crypto-financial-aid endeavors happening everyday here on Steemit. Should we leave the economically unsound and mass-inflated, limitlessly-printed garbage currencies of the fiat (lit. "by decree") paradigm, and allow mathematics and human free will to subjectively value goods and services, the kid-drone-bombing, 6-trillion-dollar-losing, no-effort-inputting-but-still-taking-the-fruits-of-your-labor-and-efforts state will be shit out of luck, for lack of a better phrase.
So yeah. It's coming. The clash. Feed the wolves what you must, but don't forget why all of this started, either, or where it must ultimately go: if the state takes total control of the cryptosphere through violence, regulation, and fear mongering, crypto becomes as worthless, inconvenient, and violent as fiat. If crypto remains a monetary instrument of the dignified individual, the state can never fully embrace it. Wise as serpents, gentle as doves. Make your money, and make the world a better place. Just don't fool yourself into thinking there is no risk here, or that the line is not already drawn in the sand.
Which side are you on?
~KafkA
Graham Smith is a Voluntaryist activist, creator, and peaceful parent residing in Niigata City, Japan. Graham runs the "Voluntary Japan" online initiative with a presence here on Steem, as well as Facebook and Twitter. (Hit me up so I can stop talking about myself in the third person!)
God bless you
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The thieving no good governments can kiss my hairy arse!!!!
It seems the UK government has nothing in place yet to my knowledge regarding the taxation of crypto profits but I'm sure it's in the pipeline.
It's no surprise to me to see the Japanese take the lead in crypto taxation considering they are a puppet government of the US and effectively broke.
As far as I'm concerned this is a line in the sand, I won't give them a penny.....
EVER!
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I love the slant of this article. What I think most of the naysayers are forgetting, is that the "value" in "store of value" of crypto-currencies lies in the decentralization, or reclamation of economic freedoms.
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Indeed!
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You know how I feel about kafkanarchy84!! This is sick, just about as sick as California now being a sanctuary state and the fact that CA is now taking away the only tax deduction we had, our home interest .. nothing surprises me but I can just hope that 2017 filings create so much havic for the IRS that they just give up :) SICK!!!!! SICK!!!!!
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It is perverted in the most fundamental sense to assume the efforts by others are owed to you because you are the reason that happened for them. Isn't it funny that when you are a US citizen, your government never fails to collect your collection payment owed to them. @sunshine247 you are correct, the current systems are rigged to not allow free thinking beyond what I just mentioned. If we continue the path we are on, this will remain "just the way it is." We will not. Something has got to give.
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This all freaks me out.
"Compliance" is key I suppose but to what end?
As you said taxation is theft
Tax evasion is also "theft"
I'm not happy about any of this.
I don't think crypto earnings should be taxed
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Interesting thoughts @chelsea88. I think all tools created by people should be used to the benefit of the people as they wish. I am far from an anarchist, rather a US citizen that is not happy with the status quo, and as a citizen here I should be among the happiest due to our dollar bill being the dictionary picture of "modern international status quo." The wheel was not invented to work differently for each class, that turned out to a solid capital-tech invention that helped all who were able to learn the technology. I am all for a free market transparency capitalist based economic philosophy, but the current system is so far from that a silly concept like cryptocurrency has filled that vacuum. Great article @kafkanarchy84!
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I hear you. I'm Also here in the "greatest" country on earth & freedom couldn't be father than free, am I right?
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Very true. Nothing is ever free, and anything of value is always backed by something else of value.
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Well not everything....
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Ha ha maybe not on the surface. But it is backed by the full faith and credit of its armed forces might, and other forcible means the interest can employ to make things happen on their behalf. Also the full faith and credit of the American people's current and future economic pursuits, real estate held by the government (or protectorates). Ha, but yes I think you are at least half right.
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Right now the dollar is still backed by oil, but not for long.
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Oil? Whose oil?!!
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In reply to the question about who's oil. Any country that is still selling Oil for dollars, those sales are supporting and backing up the dollar. I know you don't believe that Oil is no longer sold for dollars, do you?
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True!
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Of course the state is afraid of generosity, since it does not play the middleman and get its cut of the generous act in a p2p generous transaction.
When absurdity rises, creative solutions become imminent. It is no surprise that blockchain technology emerged, it is the invention of the age and will hopefully take us to an era where people are responsible for themselves and get out of the grip of the father figure "a state" that manages your life for you in a non-consensual exchange of a nice juicy cut.
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The money is not able to be laundered by central government, at the expense of the public, with fees north of 30% in a lot of cases (30%+ wastage/fraud rate in medicare for example)
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Damn man, gonna have to get you and Mizue in the same room some time soon so we can work this shit out. If I'm to sell fruit and veg for Steem (or any other crypto), there's no way I'm paying taxes on it.
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We’ve always got to pay, Nick. That’s how the state takes care of us! 💩
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I reckon there should be an age limit on the state taking care of you, just like there is on your parents taking care of you. When you grow up, and leave home, and start earning money, and settle down, the state should give you the option to opt out and fend for yourself on your own. And as for those sorry bums who want to be taken care of, they should be made to forfeit their right to tell anyone else how to live.
Anyway, my nationality is British and I haven't lived there in a decade. I spent ten years in France without being French, and now I live in Japan, so I reckon I no longer have a state and no one is obliged to take care of me and I'm not obliged to take care of them. Why isn't there a stateless passport that grants diplomatic immunity?! I bet people would pay good money for one of those!
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A few weeks ago, here in Croatia the government introduced taxes for Bitcoin. Scumbags, they are trying everything they can to take some money from us. Hopefully, them and banks don't ruin cryptoworld. I think one of them is going to wipe out the other, but I'm not sure which side will win.
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Indeed. It is a crazy time to be alive. Godspeed, @croata!
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Great job of articulating the fears and concerns that I'm sure many of us here share with you.
This is my first financial year of being actively involved in Crypto and I'm hoping that any gains can be taxed to a bare minimum if possible. I can't help but wonder to myself though, how can centralised control of decentralised assets even work?
I don't deny the fact that it could all get really damn nasty, but it seems like the perfect opportunity for the state to show it's true colours to those who still believe that it exists for some arbitrary "the greater good".
I'd love to hear how others are planning for this and working to protect themselves in the long run.
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This is an interesting post also on this theme @kafkanarchy84 https://steemit.com/cryptocurrency/@lesliestarrohara/it-s-2018-and-the-cryptowars-have-begun
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Hey, @howardblott. Great thoughts here man!
Really well stated and I agree. We certainly are living in interesting times.
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I think a new idea, it is new or not I am not sure, but if we have strong crypto banking system in every country, where we can directly get our steem price can be exchanged without the intervention of the government of any country. Then our crypto currency will be safe. If we have decentralized bank to where every currency of the world be available... The problem may solve in this way. Govt are the monster who are in a mood to grab your hard work money every time. Please think about this. Have a beautiful day my friend.
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I am on the humanity and spiritual side of this coin!
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I am on the side of the person in the center of everything. Very nice article congratulations.
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Spiritual and humanity side
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On top of all that, it is sort of fun! Of course I think the same about anything anti-state. Please visit policyofliberty, too. Appreciate your upvotes! I upvoted yours as well.
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Sweden is getting crazier by the day and I'm seriously thinking about moving to Portugal in the not so distant future. Build up a Steem eco community which should be a lot of fun! :)
Don't think we have to do so much fighting to be honest, just have to create parallel structures and switch our focus away from the systems that are keeping us enslaved...
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They say the grass is always greener, I'm not from Sweden so I can't judge how you evaluate your country, but from the outside looking in it seems like one of the premier places to live.
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Yeah we got a good image but it's actually one of the craziest places on earth I'd say but I still got a very positive outlook. Just need to work hard going forward! :)
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I hope that is true, but I come from the land where people like Ed and Elaine Brown are kidnapped and their best friends shot at by Federal agents for attempting to keep their own money. The state despises parallel systems, in my experience.
I do agree, though, that the focus should be moreso on the solution than on the problem.
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Yeh I guess it's very different where you are situated but we got the numbers just have to see through all the deception and unite with a common intention for the good of humanity and all shall be well.
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Well, thank goodness I don’t live there anymore. Anyway, I am with you. Build the new system and let the old one become irrelevant ;)
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YES! :D
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Such freedom gradually becomes a tyrannical "freedom of the 'the strong' against the weak, who have no choice but to submit.” “It can be accepted that there is a price for man's work, time spent or service done, but never for human dignity.” “Slavery stands as an affront to human dignity.” you have my vote sir
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I am going to have fun reading this one!! Thank you for the post once again kafkan, we appreciate it!!
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Éstoy del lado de lo justo, el equilibrio, el valor. Millones de personas mueren a diario porque apesar que trabajaron sin parar no alcanza para la comida como un ejemplo. En que momento valemos menos que los demás ?
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Habe Deinen Artikel mit Interesse gelesen.
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thanks your ınformations
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You can laugh at me now if you want. I have to taxes here in the states as well.
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I am not a tax expert but it seems like it would be a bad idea to cash out all of your gains in one year and achieve the highest tax bracket. Instead of cashing out $400,000 EUR in one year it might be a better idea to cash out $50,000 EUR over 8 years.
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Well, precisely that same logic could be argued for why many are delaying converting more of their holdings to fiat, if the price started exploding last year, and many are in places like the EU/US/JP where large amounts would be taxed heavily then it could explain why there isn't more selling action by medium-sized wallets even at these prices. Many are probably just waiting on capital gains year holding to take effect, which would depend on when they bought in.
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I don't live in the EU..but according to that user he was taxed so heavily because it was his only income? So, could those taxes be avoided by having a crap job for one month. Would he then have "regular income", and be subject to a lower tax rate? Just wondering how that works there.
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I imagine they word it like that because the profits from the sale itself count as income, if he mined those coins then he's talking about the risks he had acquiring the mining equipment, running it all and avoiding getting his coins stolen, and he's saying his cost basis is 0 because he didn't pay in cash for the coins. If he had, and bought at say 1000 and sold at 15000, then at least he would only pay on the profit of 14000 a coin, but in his situation he has to pay taxes on the whole amount he sells for.
I'm not an EU tax expert but I believe any wages made in the year would have still contributed to his wages including the sale of his coins, as someone else suggested he could have just sold less this year, but perhaps didn't realize the tax ramifications or was afraid of a huge drop in the price. Bitcoin has dropped around 90% in a very short timeframe in the past multiple times so I can't blame anyone for getting out while the going is good.
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Very informative, thanks kafkan
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Great post @kafkanarchy84. I absolutely agree. Taxation is theft. If we don't pay tax it will be taken by force. This tax money is then used to fund atrocities. It also used to help large corporations stay rich or get richer. Any benefit from government expenditure seems more of an after thought.
Changing country might be the best option.
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I like your post, even though I kura little understand.yang but your posting good friends, do not forget to upvote and resteem my blog buddy ya
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Wow, this was definitely a rally good post and interesting, this is a topic that everyone should know about.
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Thank you so much for providing information about this
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Really fascinating post. Thank you!
"To those pursuing business. Fix before you some pure and lofty aim. Build a notion of what you seek, something viable and worthy. Monetary accumulation need not be a primary pursuit here, for the dollar is a subordinate means to a greater end, and we must not mistake this means for the end. Wealth must be kept moving, changing forms, places, and hands. It must find new channels in which to flow, new markets to supply and create new demands where no demands exist."
Love, @yourself.
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Imo, cryptocurrencies wouldn't exist without fiat currencies. If we were still on the gold standard there would be no market for bitcoin/cryptocurrencies. There is now at least 100 ounces of paper gold to every ounce of physical gold, as well as, unlimited fiat via central bank manipulation. If we were still on the gold standard, each ounce of gold would be @ $132,000 right now. Bitcoin/cryptocurrencies are the closest thing we have now to a gold standard & a free market at this point in time.
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