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0 sats \ 3 replies \ @SpaceHodler 6 Sep 2023 \ on: Which type of taxation is best? meta
A question to those bitcoiners who voted for CGT: against which currency would it be calculated? Presumably not fiat shitcoins, where if the inflation rate is 10% and your investment grew nominally by 8%, you lost purchasing power, but the tax man says you made gains and makes you pay tax on those imaginary gains, making sure your efforts to escape inflation lead nowhere.
So, is it bitcoin? Would you have to make gains it bitcoin terms to pay any tax at all?
Well, it has to be the country's fiat, because that's how the whole monetary policy is defined.
In El Salvador for example there is no capital gains for Bitcoin, because it is legal tender. But I don't know how capital gains from other assets(say an apartment) are calculated. If they either use USD or BTC to calculate the appreciation in capital gains.
I guess you have to simply define it one way and be consistent. Similar to using FIFO or other metric.
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In that case I wish those 'bitcoiners' hyperinflation. CGT is the worst type of tax, because it taxes efforts to escape inflation. The higher the inflation rate, the more you pay. So it incentivizes the government to push for higher inflation.
You buy a house for $1m, a year later it's worth $100m because the $ is worth 1% of what it was before, you've made 99% 'profit' and pay tax effectively on the entire value of the house for something that looks like a profit on paper, but isn't one. It's just a successful preservation of purchasing power, so now they have to tax you to make it unsuccessful.
And it's the most immoral tax, because it lies to you that preserving purchasing power is a gain. How brazen must one be to imply that!
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It perpetuates the lie that having more units of a shitcoin = being richer.
It comes from the same gang as the money printers.
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