RE: Taxes destroy all of us rich or poor

My tax accountant said that she thought that only transactions that leave the platform should be taxed

But that still doesn’t resolve that if we use tokens in the general economy such as if we start spending our STEEM tokens for coffee, the IRS is still treating the transaction as a capital gain on the increase in the value of the STEEM while we held it. Some other countries such as I think Germany have ruled that tokens are currency and thus do not tax every transaction for a cup of coffee as a capital gain.

My tax attorney said not to worry, that the rules will be rewritten so that compliance is possible.

Au contraire, the recent tax reform bill (c.f. also) made all trades between different tokens taxable events as if exchanging dollars for euros should be a taxable event.

The IRS has a big problem and they had better get their heads out of their arses and quickly.

Essentially the law is becoming inconsistent with itself. That is that hallmark of the collapse of the rule of law and collapse of Western civilization which is actually well underway. So as you noted, we the people can become collateral damage within a society that becomes dysfunctional where insanity rules. I’m sure the German people-at-large didn’t wake up one morning and decide they would like to exterminate 1 million Jews. Rather the entire society devolved into insanity.

So my point is we can’t safely presume the IRS will have a sane option to choose from.

(this perception can't come from those of us who say "taxation is theft" because most of the population has submitted)

This is why we need to get millions of people on something like Steem. The more people who are affected, the more likely the authorities will be forced to make paying taxes easy. Because most people ignore difficult tasks. This is why the government requires employers to deduct payroll taxes.

So, relax. They will rewrite the rules to save their own butt.

Rewriting rules doesn’t mean they will stop the ridiculousness of income taxation. My blog is not just about the hassle of record keeping, but also about the fact that all our rewards are taxed.

I really do not see how they can simplify the rules without ending taxation of tokens. And I do not think they will forsake their taxation powers. And the IRS’ insoluble dilemma is the elephant in the room. Because they are stuck and forced to destroy themselves whilst also destroying the citizens of the USA. They have no way out of this vice.

I’m actually also optimistic though. We will win. But we might win by leaving the USA with our token economies. So winning doesn’t mean that everyone in the USA won’t end up losing and being attacked by their own government. We will see…

I’m also a U.S. citizen so I understand that we’re playing with fire if we don’t report our token incomes and gains to the IRS. Ask Irwin Schiff or Lauryn Hill how it worked out for them to be tax protesters.