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The Hyperinflation Tax
545 sats \ 10 comments \ @HardMoney 28 Oct 2023 bitcoin
Capital gains tax is based on nominal price. You buy the S&P and it doubles in price you pay tax on that 100% gain when selling although the overall trade has only maintained your purchasing power.
If the Dollar hyperinflates except draconian tax measures to steal the nominal growth of assets. Hypothetically bitcoin could be priced at $1M (while $1M is really $100k of todays purchasing power) and the tax you’d be charged will be on the full ~million gain.
The devaluation of the dollar will be weaponized. Example: new rules where income over 10M is taxed at 90%. Then devalue to dollar so much any worthwhile asset results in effective confiscation when selling or trying to leave the country via exit tax
Won’t impact those who have unfortunately lost their keys in boating accidents
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221 sats \ 1 reply \ @Ray 28 Oct 2023
Property tax does a similar thing. The nominal value of my home has almost doubled the last 3 years and the property taxes are increasing to catch up. Nominal inflated fake appreciation must be paid for by dollars earned by real work.
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0 sats \ 0 replies \ @HardMoney OP 29 Oct 2023
I’m just waiting for property tax measures on unrealized capital gains. Especially for “those greedy bitcoiners”
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142 sats \ 1 reply \ @DarthCoin 28 Oct 2023
capital gain tax is the most moronic thing ever and only US shitizens are obsessed with paying it.
STOP paying taxes FFS! Paying taxes is literally supporting terrorism!
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0 sats \ 0 replies \ @HardMoney OP 29 Oct 2023
Tax the cuck buck one earns, tax it again when spent, tax it again when invested wisely, and tax all the property appreciation in fiat terms
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100 sats \ 1 reply \ @TheBTCManual 29 Oct 2023
Yeah man I totally feel this one, I see it already the wealth effect is nuts as the currency devalues even though people know that their money is losing purchasing power certain nominal figures still have their eyes lighting up because they're basing it on the past and present and cannot account for future purchasing power
People will sell their Bitcoin at certain tops, pay taxes, and never be able to acquire that Bitcoin for as long as these cycles exist
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0 sats \ 0 replies \ @HardMoney OP 29 Oct 2023
The craziest change of mindset is realizing the S&P is the rate of Asset inflation, not net new capital returns on investment
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10 sats \ 3 replies \ @Zepasta 28 Oct 2023
Dont sell your bitcoins for fiat, buy directly with btc, no tax.
If you are into bitcoin only for the gains, sell them via P2P like Robosats, no tax.
Taxation is theft.
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7 sats \ 2 replies \ @HardMoney OP 29 Oct 2023
Well technically you’re still supposed to “report” the transaction. The smart and logical thing for governments to do would be enact measures that allow transaction 1k and below to be non-taxable.
If you sell on Robosats what fiat method of payment do you choose?
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0 sats \ 0 replies \ @Zepasta 29 Oct 2023
If you sell on Robosats what fiat method of payment do you choose?
Thera are a bunch of them: CashApp, Revolut, Amazon Giftcards, SEPA Transfers, USDT
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0 sats \ 0 replies \ @Zepasta 29 Oct 2023
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