Debt Rattle April 5 2018
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[See the full post at: Debt Rattle April 5 2018]So many topics today. “Too much debt and not enough money remain a diagnosis for deflation and not inflation.’ Yes, maybe? But there are several causes and flavors of inflation. In particular a hyperinflation is the repudiation of the government, and its currency too. What they never catch is that hyperinflations happen with a terrible economy, high unemployment, and while prices are high, actually there is an acute shortage of money. That’s why there’s the temptation to print even more. It’s not your “oil prices raised all prices” or “the economy in S.F. is super-hot” inflation.
Opioids caused by doctors? Gee, who knew? And “This was before the FDA”. You mean the FDA that raised the number of opioid doses states (doctors) were legally allowed 10 fold after we got those poppy fields in F-stan? And then they suddenly prescribed all of them. Yeah, the government and that FDA sure has been a big help! Not like those dummies in 1800. You see now we get the same deadly service AND we pay an agency to not stop it too. Double the cost, half the results. Winning!
Bitcoin, wow, it’s a wreck. Forbes here says you owe taxes. That’s reasonable. However, neither Congress nor the IRS have ANY definition of crypto or the taxes owed. Cryptos have been defined as 1) Nothing, 2) Poker chips 3) Commodities 4) Currencies and 5) Securities. Newsflash: all 5 of these have different rules and different tax rates. Long-term gains? Short-term? International? On what schedule? Are we supposed to just make it up? Why? If I told you soda was taxed but didn’t tell you how or how much, how are you supposed to remit? Their answer, as typical for government: that’s your problem. Pay 100% of your gains just to be sure. Pay $1 and we’ll forgive our friends and sue our enemies. …And that’s just with currencies; “tokens” aren’t cryptocurrencies. What’s your dry-cleaning receipt worth? Should you file gains on your coupons? Gift-cards? Deferred cable bills? How about a car-wash coin? If a car wash goes up, do we file gains on the value? At what rate? What do you mean it’s different? If a token is good for –exactly nothing– but to provide this one service, then how can it be a currency, much less a stock security?
Oh, and I’d say none of this has gone to court yet, but it has and all the cases ruled oppositely — especially the FL Federal ruling that said they were poker chips, i.e. nothing. Under our system that IS the law. So the IRS now charges gains on non-cash poker games? But Florida says legally they can’t! Somehow seems worthy of a mention, doesn’t it Forbes?
P.S. Shut up Google employees, like everyone else you both didn’t want to know and didn’t care. At all. A 5-second search on your own platform would show you Google is evil as h311 and always has been. That’s what happens when you’re mainlined child of the “Alphabet” agencies, always have been, and been doing nothing but developing targets then later the drones to kill those targets. You blind, loud-mouthed, paid-off, sanctimonious twits are the symbol of all that’s wrong these days. If you cared you’d be camped out next to J.A. and E.S.
Re: Bitcoin taxes
The Florida ruling designated Bitcoin as “property” instead of currency (and money laundering laws thus didn’t apply to the case being tried). Capital gains tax laws still apply to sales of appreciated property, don’t they? There are some exceptions (like house sales under certain conditions), but generally if you buy some property (a painting, a classic car, a share in a company, a bitcoin), and you sell it later for more than what you paid, it seems like the government wants a slice of the pie, regardless of what property was sold (although they may turn a blind eye to car wash tokens and grocery coupons).
It gets messy, and this article from Investopedia attempts to spell it out, but they seem to make the mistake of assuming that Bitcoin’s value will only go up, resulting in capital gains (not losses):
“The IRS has made it mandatory to report bitcoin transactions of all kinds, no matter how small in value. Thus, every US taxpayer is required to keep a record of all buying, selling of, investing in, or using bitcoins to pay for goods or services (which the IRS considers bartering). Because bitcoins are being treated as assets, if you use bitcoins for simple transactions such as buying groceries at a supermarket you will incur a capital gains tax (either long-term or short-term depending on how long you have been holding the bitcoins).”
Are There Taxes On Bitcoins? By Kushal Agarwal, Investopedia
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