Just read some news about the potential for 0% capital gains on crypto in the US.
Trying to wrap my head around what that actually looks like in real life.
Not talking about prices, but more about how people would behave.
For ages, the big stress for holders has been this:
every time you sell, it's a taxable event.
If that goes away, everything could shift.
Less pressure to sell, more holding long-term, and maybe folks will start to see BTC as more of a property investment instead of just trading.
Feels like the mindset would change more than the actual price charts.
So, what do you all think? Would people still be trading a lot, or would crypto become more about accumulation?
Taxes are voluntary. People are tricked into volunteering without even realizing it. And since all State income taxes are based on the Federal IRS taxes, if you don't volunteer in, you don't pay. Capital gains taxes are 0% right now.
Of course, the way to make a lot more money than capital gains is, learn how to volunteer out of taxes. Then make a little in capital gains. Then when they come for you, sue them individually as men/women for using their office to harass you, and charge them $billions in the suit. Become a billionaire for making a tiny amount of capital gains.
I wasnt even thinking about legality side tbh.
More about incentives.
Right now a lot of selling isnt because people want out its because they close positions for accounting, year end, tax planning etc. You see it every cycle around certain dates.
If that pressure disappears, holding becomes the default behavior instead of trading.
So the question becomes less about avoiding tax and more about market structure does volatility actually drop if people stop being forced sellers?
Feels like it could change how cycles look entirely.
Isn't it the legal side of taxes that causes taxes? How many people would 'donate' money if they didn't have to pay taxes?
Right now there are people who buy and sell Bitcoin to earn a living off the peaks and valleys. They don't always win, but they would change their thinking if they didn't have to think about taxes in the mix.
The only reason the tax people are successful is, they focus the money-earners on something else. That something is that people have done something illegal if they don't pay taxes. But tax money comes out of a person's private property, because it represents value to the person holding the money.
In addition, if you actually follow the definitions of the words in tax law to their sources, they equal fraud. Taxation is fraud.
So, you are right. But it sounds like you are posting from a position of being convinced that taxation is the way to go = fraud is the way to go.