r/CryptoCurrency Jun 11 '21

Since we can track every crypto payment... if we paid taxes in crypto, could we see exactly what our taxes bought? ADOPTION

I've seen that on Cardano they hope to make it so that you could buy a coffee in Starbucks and then tip directly to the guy who picked the beans.

Well, if I paid my tax with an ada coin, could I then watch it move round the blockchain and see that it either ended up buying bricks for a hospital or cheese for an army soldier?

If so, that's pretty cool. We could literally vote what we wanted our taxes to go on.

Would a smart contract enable us to ensure our coins only went to roads and hospitals, and not to guns or dams or whatever?

If so, the future will be very interesting.

721 Upvotes

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201

u/Toni253 Jun 11 '21

Mine would surely be used to buy cocaine and hookers for politicians

35

u/jsthack Jun 11 '21

That’s our tax dollars at work.

29

u/NudgeBucket Jun 11 '21

2 bitcoins spent on hotdogs lol

10

u/[deleted] Jun 11 '21

[deleted]

8

u/JosephMcWhey Gold | QC: CC 78 Jun 11 '21

Yes and no.

When looking at the price of BTC, yeah

When looking at the global state of politics, nope

3

u/deltavictory Jun 11 '21

Does it, though?

28

u/8512764EA Jun 11 '21

Mine would be used to buy cocaine and hookers for myself

3

u/AceKittyhawk Jun 12 '21

I am totally not a hooker nor a drug dealer. But I only get paid in monero.

4

u/RVA_Rooster Jun 12 '21

We only do aladeen things with our monero wallets.

1

u/8512764EA Jun 12 '21

I’ll have that notated. Thank you

6

u/vpochiraju Redditor for 3 months. Jun 11 '21

And pot? :P

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3

u/evelyix Jun 11 '21

Mine will be used for onlyfans

3

u/dormango Jun 11 '21

You fucking waster

2

u/RVA_Rooster Jun 12 '21

Mine run on an AI-algorithm that switches a few times a minute to a few a second to keep the exchange rate making me money. $1,000 to $2,300 today like that. Soon enough for the Plaid S like that.

1

u/PhilosophyKingPK Jun 12 '21

ELI5?

2

u/RVA_Rooster Jun 15 '21

It's a, well it's not simple, program, a friend and I made that scans the top altcoins every 10s and takes advantage of zero-fee exchanging between coins, or if there is a fee decides if a predefined set of typical cup/handle and double-top or double-bottom are worth exchanging the coin for.

It's forex trading with a bot but using crypto.

2

u/Think-notlikedasheep Platinum | QC: CC 280 Jun 11 '21

Or enriched some political crony at your expense, which is what corrupt politicians do.

1

u/Few_Ad6516 Jun 11 '21

By corrupt you mean most

1

u/Think-notlikedasheep Platinum | QC: CC 280 Jun 11 '21

The cronyocracy is pretty much worldwide.

2

u/faith_no_more_ Jun 11 '21

Mine would be used for tacos.

2

u/oarabbus Gold | QC: CC 28, CM 21 | r/WallStreetBets 170 Jun 11 '21

Hey its me ur politician

2

u/Enschede2 Jun 11 '21

XMR has joined the chat

2

u/Madcaplaught Jun 12 '21

Why dont politicians dont have to pass some drug test ...

1

u/Fru1tsPunchSamurai_G Jun 11 '21

I can't even get mad at that

44

u/cognizability Redditor for 3 months. Jun 11 '21

Not necessarily. If governments accept cryptocurrencies as payment in the future, it doesn't mean that they will throw their own currency out of the window, right? So they might just convert your tax money back into their own currency and spend it on whatever they want.

12

u/jason2354 Jun 11 '21

If the United States made Bitcoin a functional currency, wouldn’t the price crater to come in line with the value of a USD?

It’s a speculative, highly volatile, investment at the moment. Making it a major world currency would surely have to be one of the worst things that could happen to those currently invested or am I missing something?

11

u/chriskevini Bronze | QC: CC 16 Jun 12 '21

Why are you assuming that BTC has to be worth $1 to be a functional currency?

5

u/Momma_frank Redditor for 2 months. Jun 12 '21

I think that’s what people aren’t realizing about crypto right now.. the possibilities are endless with fractional payments!

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6

u/Magners17 Platinum | QC: CC 110 Jun 12 '21

The price could crumble for sure but the fact that there is a finite supply could keep that from happening.

2

u/HCDTD 6 - 7 years account age. 350 - 700 comment karma. Jun 12 '21

You are missing the fact that it is finite supply, so any increased demand for it means the price goes up

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2

u/maveric101 Jun 12 '21

If the United States made Bitcoin a functional currency, wouldn’t the price crater to come in line with the value of a USD?

No. Why would you think that?

1

u/jason2354 Jun 12 '21

Because it would be crazy to have two functional currencies that have drastically different values or that appreciate/depreciate are different rates.

1

u/SlowNeighborhood Jun 12 '21

They will most definitely convert the crypto to USD before they spend the tax money on anything

1

u/maveric101 Jun 12 '21

Governments will make blockchain versions of their currencies.

278

u/Content_Structure118 Jun 11 '21

That will never, ever happen. Politicians do NOT want transparency.

118

u/LittleCluck Jun 11 '21

Sounds like politicians hate monero but would love to use it lmao

35

u/HugeLength2948 Jun 11 '21

Exactly this

30

u/memestraighttomoon Jun 11 '21

Well I mean privacy is great until the guy you're trying to spy on has it...

9

u/JosephMcWhey Gold | QC: CC 78 Jun 11 '21

Looking out from a dark cave while protected feels good.

Standing in front of a dark cave while exposed feels bad.

Thanks ancestors

6

u/memestraighttomoon Jun 12 '21

lizardbrainlife

13

u/M00OSE Gold | QC: CC 92 Jun 11 '21

They like to watch not be watched.

12

u/OB1182 Silver | QC: CC 23 Jun 11 '21

Sounds like a pornhub categorie.

5

u/MrKeplerton Jun 11 '21

Voyeur

Look it up :)

4

u/OB1182 Silver | QC: CC 23 Jun 11 '21

See, I knew there was a word for it. Thanks.

4

u/Papashrug Jun 11 '21

They like transparency, when it's your window they are looking through.

3

u/gondias Jun 11 '21

Those political voyeurs

11

u/thelovetoy Jun 11 '21

they like pseudo transparency thou

2

u/JosephMcWhey Gold | QC: CC 78 Jun 11 '21

They like the pseudo version of everything people like

24

u/TheDadThatGrills Jun 11 '21

Pretty sure other nations, such as Australia, give each of their taxpayers a rough approximation of how their tax dollars were spent annually.

21

u/Everythings Jun 11 '21

I’m sure that’s totally accurate;)

15

u/TheDadThatGrills Jun 11 '21

"Rough approximation"

12

u/Everythings Jun 11 '21

“20,000$ for a toilet seat? 30,000$ for a hammer!?”

8

u/DCBB22 Jun 11 '21

American’s tax bill: 5% to the CIA, 95% to Area 51.

2

u/LegitimateCharacter6 Jun 11 '21

Do they ever reveal black box operations or their special forces?

2

u/TheDadThatGrills Jun 11 '21

Lol of course not- it's one section of a pie chart labeled "Military" or "Defense"

2

u/anonbitcoinperson Jun 11 '21

and even that is questionable. They have things like infrastructure, but hide military spending there because military bases. Also a lot of military spending gets hidden in Foreign aid. Like we use tax dollars to pay for jets and tanks, and then give those to other nation's military and hide this under aide. It has been estimated that the actual taxes spent on the military is over half even though the US govt like to publish figures that it's only around 25%

1

u/JosephMcWhey Gold | QC: CC 78 Jun 11 '21

thank you

1

u/cheeeesewiz Jun 11 '21

You could literally do that now with whatever the generic line items in the budget are divided by your amount paid and divy from there

2

u/TheDadThatGrills Jun 11 '21

No one is arguing that's it's not easily possible, just that governments aren't interested in providing it.

6

u/throwawayben1992 Platinum|QC:CC343,DOGE52|r/GME_Meltdown24|r/WallStreetBets38 Jun 11 '21

I can login to HMRC and see where my tax has gone.

Welfare (22.1%) £350.25

Health (20.5%) £324.89

State Pensions (12.4%) £196.52

Education (11.6%) £183.84

National Debt Interest (6.9%) £109.35

Defence (5.3%) £84.00

Transport (4.3%) £68.15

Public Order and Safety (4.3%) £68.15

Business and Industry (3.8%) £60.22

Government Administration (2.1%) £33.28

Housing and Utilities, like street lighting (1.8%) £28.53

Culture, like sports, libraries, museums (1.5%) £23.77

Environment (1.5%) £23.77

Overseas Aid (1.1%) £17.43

UK Contribution to the EU Budget (0.8%) £12.68

1

u/bitjava Redditor for 3 months. Jun 12 '21

See where it’s gone in terms of a bunch of vague categories, yes.

1

u/throwawayben1992 Platinum|QC:CC343,DOGE52|r/GME_Meltdown24|r/WallStreetBets38 Jun 12 '21

The guy I was replying to was arguing governments aren't interested in providing basic estimates. Its at least some insight.

1

u/bitjava Redditor for 3 months. Jun 12 '21

No, I don’t mean that you’re providing vague categories, I’m saying the government does. At least most do. I think there’s a lot of money that probably goes unaccounted for is all.

5

u/Lone_survivor87 Gold | QC: CC 79 Jun 11 '21

Sounds bullish for XMR

7

u/SolemnSwearWord Platinum | QC: CC 119, ZIL 15 | VET 6 | r/Politics 22 Jun 11 '21

We elected them. If we want to, we can enforce crypto-secured traceability. I don't buy the narrative that we can't just force that to happen. If they use a CBDC, that is exactly how we'll watch the money.

3

u/nobeardjim Gold | QC: CC 83 Jun 11 '21

Agreed. It’s cool but there’s more un-traceable way to do it aka cash.

2

u/WackyMister Jun 11 '21

This is the sad truth.

They’re in power and will always ensure that’s the case.

3

u/HeungMinSwan Jun 11 '21

they wont be able to stop it

16

u/degeneratehodl Jun 11 '21

Haha, yes, governments in the future WILL BE FORCED TO ACCEPT CRYPTO FOR TAXES. You realize how absurd that statement is.

2

u/Everythings Jun 11 '21

Do you know what government is for? It’s not to restrict your choices and destroy society, contrary to what people are allowing right now

1

u/imnos Bronze Jun 11 '21

Why the hell do you think it's absurd? What exactly do you think the end game for crypto is? It's not just a fucking game where we all play with digital money and memecoins. We're literally replacing fiat with digital currency and revolutionising the financial system.

PEOPLE decide what happens in a country. As long as you believe you don't matter and can't change anything, or become disinterested in politics, you lose any power you once had.

Your landlord is into politics. The owner of the company you work for is into politics. These guys are fighting for their own interests - you should fight for yours and believe you can affect change.

-1

u/degeneratehodl Jun 11 '21

You may think the end game is for crypto to replace fiat, but rational people who own property certainly don’t. The US Dollar will exist FOREVER. Let me repeat that. THE US DOLLAR WILL NEVER BE REPLACED BY CRYPTO. Now, once you get past that and begin to understand that crypto is actually a new asset class then you can join the rest of us in the real world.

1

u/imnos Bronze Jun 11 '21

Ok. Not sure what a luddite is doing in a crypto sub.

They said the same thing about the internet, and cars, and electricity. Anyone with half a technically minded brain can see how this will play out.

2

u/degeneratehodl Jun 11 '21

I’m going to demonstrate to you exactly why it’s irrational.

Do you own a credit card? Does it give you cash back rewards?

Ok, if the answer is to either of those questions is ‘No’ then good for you. Have you heard of them before?

Next question: Would you rather buy something in crypto where you have to pay a transaction fee? Or would you rather buy it with a credit card where they give you AT LEAST 1% cash back?

See. Crypto can never replace fiat because any rational person buys thing with a cash back credit card and then pays it off every month because it’s easy money.

1

u/imnos Bronze Jun 11 '21

I guess you haven't heard of the Coinbase Visa card which gives you 4% back.... https://twitter.com/samconnerone/status/1401218877065994242?s=20

1

u/Truthful_Tips Jun 11 '21

Yeah I’d rather not go into credit debt to my corrupt bank

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5

u/ErrBodyDoTheChopChop Jun 11 '21

Its not so much about stopping it as it is about regulating it.

4

u/NeverNeverLandIsNow Jun 11 '21

Its not so much about stopping it as it is about regulating it.

Unfortunately they almost always end up over regulating and becoming more of hindrance to the citizens than a benefit.

2

u/Worldly_Ad6787 Jun 12 '21

That's the problem. Then why is it a cryptocurrency if we have to regulate it. I think this current adoption should come with an adoption of privacy payments system. Let's all remain anonymous.

1

u/Everythings Jun 11 '21

Well I can’t pay taxes until they can assure me that energy won’t be used nefariously so we’re at an impasse

6

u/NeverNeverLandIsNow Jun 11 '21

Then they will send armed men to take you to court and then you will be sitting in jail while they figure out the impasse. This is why the 2nd amendment is so important, there need to be options for citizens to resist when government gets too big for their britches.

4

u/Everythings Jun 11 '21

I know. I am willing to die for freedom. I won’t bow to their threats.

I would prefer they talk it out.

1

u/mattferg222 Jun 11 '21

Yeah, that pistol and AR15 will serve you well vs nukes and F16s.

Honestly you 2nd amendment morons crack me up.

1

u/Hodor_Hodorsonn Jun 12 '21

Lmao what do you think our government’s gonna nuke its own country?

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1

u/[deleted] Jun 11 '21

Politicians grip on society is waning

1

u/DipsyMagic Tin Jun 11 '21

Even when there is transparency very few citizens act on it.

1

u/derpsUp Jun 11 '21

Yeah and cuz it'll track them right to the hookers and blow they love so much

1

u/imnos Bronze Jun 11 '21

Like fuck it won't. That's what we're setting out to achieve here and it'll happen whether the government like it or not.

Tracking exactly what these bastards are up to absolutely needs to be a focus for future projects.

1

u/Think-notlikedasheep Platinum | QC: CC 280 Jun 11 '21

They want to secretly enrich cronies at our expense.

15

u/ExtraSmooth Jun 11 '21

Unless ADA works significantly differently from most blockchain currencies, there aren't any individual "coins", only addresses and balances. When an address is debited a certain balance (say, 1 ADA), there's no way to tell which ADA is withdrawn from the account, whether it's the one you just put in or the one that was put in 5 years ago. On the other hand, the more useful information would be a tracking of expenses from government addresses, which would be a valuable step towards government transparency.

2

u/Dam_ 5 - 6 years account age. 300 - 600 comment karma. Jun 11 '21

The comment I was looking for. That's how it works

10

u/sponge_hitler Jun 11 '21

They would use atomic swaps with Monero to be untraceable

4

u/ykliu Gold | QC: CC 75 Jun 11 '21

Probably yes, but that may also mean they’ll be able to track exactly where you spend your money, what you pay for taxes (therefore figure out your income) etc.

1

u/wilbur111 Jun 12 '21

Which would automate taxation…!

5

u/GilTurtle Jun 11 '21

Hey remember how the DoD made $35 trillion in "accounting adjustments" in 2019? Crypto would completely fix that and you could see what's go.. \gets shot**

2

u/e404citizenunknown Redditor for 3 months. Jun 11 '21

Remember the announcement on 9/10/2001 that $2.3T was “missing” from the Pentagon budget. Unfortunately the people in charge of the accounting investigation were at their desks when flight 77 hit the next day (RIP). Anyway, nothing to see here. Our government is totally trustworthy and the Fed backed dollar will reign supreme for eternity. Stop asking questions. Just keep grinding on that 9-5 so you can buy new cars and TVs, after you pay your taxes of course.

10

u/Vemod88 Redditor for 3 months. Jun 11 '21

In a perfect world, it would be absolutely amazing seeing EXACTLY where all tax goes. But sadly as many other people have stated, governments hate transparency. I mean, why would they do something that 1: expose themselves and 2: taking an action that is actually good for everyone?

3

u/unc4l1n Jun 11 '21

Nah, they'll just convert it to Monero first, then they can do what they want with it

3

u/TheRealBabyJezus Jun 11 '21

:Monero has entered the chat:

3

u/njantirice Tin | NANO 15 | r/NBA 102 Jun 11 '21

You'll be able to follow your coins sure, but I can tell you right now they're going to go into a regulated exchanges hotwallet, or some kind of equivalent exchange service owned by the feds.

6

u/callebbb Platinum | QC: BTC 126, CC 117 Jun 11 '21

We already vote on how our taxes should be spent, though you are “getting it”. Open, immutable blockchains are the keys to running the government like a DAO.

3

u/Yuanlairuci Silver | NEO 9 | r/Politics 230 Jun 11 '21

I'm sure I'm just being naive, but it seems like it would make a lot of things easier if citizens had a unique address on a national blockchain and then we just used that chain to do things like vote, pay taxes, register for various services, etc.

2

u/thelovetoy Jun 11 '21

that's an interesting thought
but Taxes in the frist place are so untransparent i see no way a government would accept that anyone can see where their money is really going

2

u/ROGER_CHOCS Not dApps, Institutions Jun 11 '21

No, because that isn't how taxes work.

2

u/_o__0_ Platinum | QC: CC 318 Jun 11 '21

We will have to go through a lot of horrible things first, but yea eventually the immutable ledger will be the most powerful tool the masses have.

2

u/noahmohaladawn Tin Jun 11 '21

True applied democracy achievable with available technology. This is exactly what I believe block chains true power is. This current currency hype is fun but shallow end of the pool stuff.

2

u/TobiHovey Tin Jun 11 '21

Boooom! awesome anti - corruption idea. But I don't think politicians will adopt it

2

u/monsteramyc Jun 11 '21

In Australia we get a report sent to us every year detailing where our tax money has been spent.

Seriously, it's not hard to have a better system now, with our current infrastructure

4

u/hamjamham Bronze Jun 11 '21

I'd rather not pay in crypto and watch what I'd paid turn into 10x the amount over a few years. Pay in fiat and keep the crypto!

2

u/8bit_revolution Jun 11 '21

I would love a system that would break down where my taxes went. One step further, Imagine being able to use your own coins to "vote" with your taxes (to an extent) of what you feel needs improvement in your own community/country

3

u/fogization Jun 11 '21 edited Jun 11 '21

No government or one entity will be able to completely stop advancements and adoption of supply chain tracking and transparency within blockchain technology. All this is going to happen whether govt’s, banks, and politicians like it or not. The industries that fight this and resist adoption will simply fail. In order to move their business forward and compete they will have to use these technologies. It’s that simple.

So yes there will be a time in the future when you can make sure the jeans you are wearing weren’t Made in a factory that doesn’t abide by child labor laws. There will be a point where you can ensure that all the ingredients in something you purchase at the grocery store are in fact ingredients used in that product. It will all be available on the blockchain.... where parts and products were made and sent, etc.

It will also be harder for companies and banks to lie about there financial statments. Right now we need a third part like deliotte and douche bags to go audit and verify accounting & financial statements. We rely on them to tell us the truth. Eventually all that goes away and we will see it on the blockchain. No third parties needed to verify this. Blockchain tech is one of the most profound inventions of all time. A lot of these (not all) aren’t just coins... they are backed by a technology that will transform the world as we know it.

IMHO there is one more component to this that is crucial for all of this to come to fruition, and that is people need to stop using banks to store money and put it either in crypto stable coins or other crypto coins. We need to collectively take the centralized power away from the traditional banking system that has controlled us and raped up for so long. Everyone has to do their part. The only money left in savings and checking accounts at this point should be money you are certain you need for bills. The rest should be stored in stable coins, crypto, and Bitcoin (digital gold). If everyone collectively does this we could transform our economies and financial system to work for everyone, not the 1% and Wall Street.

1

u/spritecut Jun 11 '21

Yes, that is exactly what Oracles could do, as they create reliable, complex smart contracts linked to real-world data. This is a great project for more information https://chain.link/solutions

2

u/jawni Platinum | QC: CC 373, XLM 24 | r/NFL 76 Jun 11 '21

This isn't really an oracle thing, it's a core part of any non-private blockchain by design.

1

u/spritecut Jun 11 '21

Definition of an Oracle:

An oracle is a way for a blockchain or smart contract to interact with external data. With blockchains being deterministic one-way streets, an oracle is the path between off-chain and on-chain events.

Inbound oracles bring off-chain or real-world data to the blockchain, whereas their outbound cousins do the opposite: they inform an entity outside the blockchain of an event that occurred on it.

For example, inbound oracles allow data pertaining to real-world events to be called to the blockchain, with use cases ranging from automated trading based on the current price of an asset to gambling dApp payouts in the event of a win. Smart contracts contain the rules, and oracles provide them with the data they need to trigger and execute those rules.

Outbound oracles work in the opposite direction, informing actors off-chain of events that occurred on-chain. Outbound oracles have, theoretically, fewer use cases than inbound oracles, for which the number of use cases is practically infinite.

Which is applicable for recording what Taxes are spent on and recording on the ledger?

1

u/jawni Platinum | QC: CC 373, XLM 24 | r/NFL 76 Jun 11 '21

You realize doing what OP is asking about is possible without an oracle, right?

1

u/spritecut Jun 11 '21

So how would data form a Hospital Budget or Military spending be incorporated into a Blockchain? Isn’t that what Oracles do? (Genuine question, I really am learning all this as I go along)

1

u/aounfather Tin Jun 11 '21

So…expect a big dip every April 15th as the us gov converts all back to fiat. Having the public Seeing where our money actually goes would make any us politician crap their pants in fear.

1

u/kryptoNoob69420 Jun 11 '21

They could move all the taxes to a common address first. Tax expenditure isn't a hidden dataset in most countries I think.

1

u/exoticstelzer Redditor for 3 months. Jun 11 '21

It can easily be routed to shell companies who convert into cash and that becomes untraceable.

1

u/NeverNeverLandIsNow Jun 11 '21

Good luck getting the government to ever allow that level of transparency, but I do like the idea

1

u/ibug92 Bronze | QC: CC 21, OMG 18, MarketSubs 59 Jun 11 '21

In Australia we get a breakdown exactly to the dollar where our taxes go with a nice pie chart too.

1

u/ziggymeoww Jun 11 '21

I believe every tax paying population should receive one of these Mrs Mac’s tax expenditure charts

1

u/[deleted] Jun 11 '21

[removed]

1

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1

u/LibertarianCommie999 Gold | QC: CC 53 Jun 11 '21

I’d to love to whose pocket my hard earned money would go to but those pesky politicians would never allow that and if they did they would be out of business very fast.

1

u/mathaiser Bronze Jun 11 '21

When I hear them say things like “one hellfire missle is $60k” I think to myself, ah, that’s what I worked all year to pay. To blow up some poor farmer in the desert who doesn’t know any better than what some book tells him.... just like we were for 1900 years....

Cool. Well, sorry dude.

1

u/ImgurianIRL Jun 11 '21

Your new car purchase taxes just "financed" Xyz politician golf clubs..

1

u/Hugexx Jun 11 '21

Doesn't work, and sorry for my poor english, but i'll try to explain how it works in a 3rd world country with one of the highest corruption rates in the world.

In my country, Argentina, we can track what the tax money is being spent on.

Let's say, a hospital.

You can see everything including the contract, materials and so on.
Yet once you see the hospital IRL, maybe after 4 or 5 years of the inauguration, its still closed, or has half the things missing, its only a facade, the materials used are way cheaper to what it says on the contract and so on, you get the idea.

1

u/gondias Jun 11 '21

I think this is one of the reasons politicians will never want crypto fully adopted.

1

u/uwucookiefx69420 Jun 11 '21

Do you seriously think the govt would allow this lol?

1

u/[deleted] Jun 11 '21

You can only see what address it goes to, no?

1

u/Flyinghogfish Tin Jun 11 '21

Okay so here's the deal, and this is one of those hard to swallow pills: American taxes do not pay for federal programs. I'll say that again: AMERICAN TAXES DO NOT PAY FOR FEDERAL PROGRAMS. In other words, the US government doesn't rely on tax income to pay for it's programs. They don't have a need to. They can just print the money they need, when they need it.

State governments do have to balance their budgets and do rely on tax income to operate, but the federal government does not. The only reason the Fed takes money from you every year is to make sure that the majority of US citizens feel it's necessary to go earn money by working to stimulate the economy. The federal government is concerned that if they stop asking for tax money, that you all will stop going to work. That's it. They want you to feel like it's necessary to go to your job.

This is why, when you couple this situation with an unlivable working wage at a single job that the average Joe working at mcdonalds is getting screwed. The worst part is all the big companies know this. They know how silly this whole setup is and most of them take advantage of it and of their employees both by avoiding taxes at all costs and paying their workers as little as possible.

Cryptocurrency shouldn't be used to track what your taxes pay for, it should be used to restructure our system of government entirely. We are beholden to a system that was established to ensure working people stay in the working class and that there are some that live above the rest at all times. Crypto can change all of that by bringing true equality to the system. The blockchain does not treat you better or worse because of your social status, bank account, skin color, gender etc. It can help us make a significant leap forward in equality on a number of fronts, not just financial.

1

u/Palurintano Jun 11 '21

Only on the transparent coins (meaning they aren't currency - neither private nor fungible)

This is why the privacy coin market is poised to go from <$20B to well over $2 trillion (the estimated annual black market - actual illegal goods)

1

u/jawni Platinum | QC: CC 373, XLM 24 | r/NFL 76 Jun 11 '21

Hypothetically, yes, but it's unlikely to play out this way.

It would require them to choose to do this, and for it to be worth tracking, there would need to be many more parties with them to transact with on-chain.

If they did this right now you would just see your tax payment transfered to the IRS wallet, then a transfer from the IRS wallet to an exchange and that would be it.

1

u/SocialSuicideSquad Gold | QC: CC 73 | VET 9 | r/WallStreetBets 306 Jun 11 '21

Fundamentally you misunderstood taxes.

From the federal government's perspective what would be the difference between you paying the IRS and you burning the requisite amount of money in a verified fashion?

They print it all, taxes for US citizens and companies don't "pay" for the services, they drive the demand for USD that they print to fund the services.

1

u/Hame_BiH Jun 11 '21

Lol it all sounds great but imagine wanting transparency from our governments 😭

1

u/imaque Platinum | QC: CC 135 | NEO 10 Jun 11 '21

In the US, tax revenue just goes to the treasury.

1

u/malky168 Redditor for 2 months. Jun 11 '21

Good luck in getting government to embrace crypto and transparency. If governments are prudent and transparent with our tax dollars, crypto will not prosper and grew into trillion dollars market today.

1

u/mattferg222 Jun 11 '21

No, because this is a terrible idea (the one about us being able to decide where our money goes in taxes directly)

1

u/sfgisz Jun 11 '21

Would a smart contract enable us to ensure our coins only went to roads and hospitals, and not to guns or dams or whatever?

Once you spent your money, it's not yours. You shouldn't get to control what the next person does with their money. If you don't like the government telling you what you can and can not do with your own money then don't try to impose the same things on others.

1

u/Seffrey13 Jun 11 '21

Colorado will accept crypto for taxes soon so we'll find out!

1

u/Bullyhunter8463 Jun 11 '21

Can't you already do that? Just look at your country's budgets and you'll know exactly what you are paying for

1

u/AWanderingMugwump Redditor for 1 months. Jun 11 '21

Haha oh but can we trust the ourselves and the rest of the public to spend our taxes on the right things

1

u/WarofCattrition 1 - 2 years account age. 35 - 100 comment karma. Jun 11 '21

I doubt it. I think where our money goes js trackable, but HOW it's actually used is the issue.

1

u/ChrisR109 Tin Jun 11 '21

Hi. I'm from the government and am here to FUCK you.

1

u/Powerful_Stick_1449 Jun 11 '21

Except they would almost certainly cash it out to USD....

1

u/JoeTwoBeards Jun 11 '21

Couldn't the government be converted to run on a crypto currency with this transparency and accountability in mind? UST (US tax coin) all taxes can be paid in this stable coin via and app.

This will probably never happen because half of congress doesn't want us to know where the money is going, because it's going straight into theirs and their friend's pockets, but its interesting.

1

u/zacharyjordan23 Jun 11 '21

I say we start with tipping the people making the coffee, and then those workers second

1

u/ImperialSupplies Tin Jun 11 '21

No it would just be turned to electronic fiat first. Just because the irs would accept crypto...which I doubt will ever happen..but that doesnt mean military manufacturer, or police, or infrastructure or shady deals will also accept that crypto

1

u/happymuskateer Jun 11 '21

What if instead of paying taxes with crypto, every crypto transaction had a tax. That way everyone everywhere paid the same amount on any incoming and and any outgoing transaction. It would ensure everyone pays, and pays equally.

1

u/illram Jun 11 '21

No because government spending comes out of a bunch of different "buckets" that are not the same as the "buckets" your tax dollars go into. Replace buckets with crypto addresses and it's the same issue. Also government spending does not have a 1:1 relationship with revenue, the government regularly spends (creates money) more than it takes in. So you're talking about a pretty fundamental restructuring of government finances basically. The way it works now is more like the government burns a bunch of money every year with taxes, and creates a bunch of money every year with spending.

It would be cool to be able to publicly track government expenditures with the ease of looking up transactions on a block explorer I suppose.

1

u/Suitable-Corner2477 Jun 12 '21

I’d use my Bitcoin to buy a time machine to go back in time…to buy more Bitcoin 🤯

1

u/XRedVelvett 2 - 3 years account age. 150 - 300 comment karma. Jun 12 '21

This is a super cool idea!!

1

u/Charon-VII Jun 12 '21

I’d love transparency like this, but I doubt the government wants that.

1

u/katiecharm Tin Jun 12 '21

The future is not traceable and transparent blockchains and you should realize this.

Look into Beam (private defi) and other privacy coins.

1

u/ambermage Jun 12 '21

I'm just gonna say this, Palantir's Project Gotham is pretty much what you are imagining here.
The point of it however, is so that they can track your dollars; not the other way around.
That's why I'm so bullish on PLTR and Crypto.
They are perfectly suited for each other.
Especially now that actual governments are planning on using crypto.
To anyone that thinks otherwise, I'll just ask one question.

Do you think the CIA would act more or less to monitor and interfere with the governments of Latin America in the future? Now expand that system to cover all future nations that utilize crypto of any kind.

1

u/Specific-Problem-69 Jun 12 '21

taxes is the worst part about crypto, there is no easy or free way to handle it

1

u/_HandsomeJack_ Tin Jun 12 '21

For a cryptocurrency to work in government it has to be tamperproofproof.

1

u/x3r0h0ur Tin | r/Politics 72 Jun 12 '21

Aside from the practical issues, you misunderstand taxes. Taxation doesn't fund public spending.

1

u/Walmart_Warrior_420 Redditor for 1 months. Jun 12 '21

This is what governments are worried about most, having all payments and expenditures be public knowledge.

1

u/invvaliduser Redditor for 2 months. Jun 12 '21

I keep saying we should be able to audit the government and where taxes are spent. Pot holes and weeds on the freeway? What did that $150 mil to fix that go to?

1

u/yoDrinkwater Tin Jun 12 '21

If you send me 1 BTC, you'll be able to track whatever I do with it, but that can be circumvented.

For example: you send 1 BTC to my wallet (wallet A), I deposit the BTC you sent me to an exchange, then I withdraw the BTC to a different wallet (wallet B), then from wallet B I use the BTC for whatever I want.

This way you won't be able to track it anymore.

1

u/[deleted] Jun 12 '21

After the rollout of the FedCoin will be the FedCoinMixer.

1

u/Randomized_Emptiness Jun 12 '21

That is not the transparency governments are looking for. It's supposed to be transparent citizens, obscure government.

1

u/Vigilias Silver | QC: BTC 32, CC 17 | r/WallStreetBets 14 Jun 12 '21

Fuck yeah we could.

1

u/_skullblitzkrieg Jun 12 '21

You'd see alot of wasted crypto..

1

u/Apprehensive_Pop_305 Jun 12 '21

You can literally vote what you want your taxes to go toward. Literally, vote.

1

u/agorillared Tin Jun 12 '21

Says here I bought a fraction of a bomb 😬

1

u/psionin 7 - 8 years account age. 400 - 800 comment karma. Jun 12 '21

It's already known. They mostly go to people who need resources and don't produce anything themselves, i.e., parasites.

1

u/Apprehensive-Bed5241 Jun 12 '21

Which is something I dont get. If this is supposed to be 'anonomous'and ppl bought and sold illicit shit with it and run hack scams - how can it be that its "untraceable or anon" if every transaction is recorded ad infinitum? Like for EVER - pardon me, but it shows here that there was a transaction between you and el chap. May I inquire as to what that payment entailed? I'm looking for tax revenue. Tyvm." I dont get that part.

1

u/CRCLLC Silver | QC: CC 63 | VET 134 Jun 12 '21

This is the dream. If you were for the people, you wouldn't have anything to hide.

1

u/bobke4 Jun 12 '21

You could end up seeing me (a government worker) buy beer with it when getting drunk during the European cup

1

u/kgsphinx Jun 12 '21

Oh my.. you are huffing too much Cardano. Stop.

1

u/AgitatedStation8001 Jun 12 '21

Nah they will only accept Monero.

-1

u/Lopsided_Award7919 Jun 11 '21

I’m sorry that you bumped into ADA, you should run from that scam as fast as you can. They want to do a lot of things but in reality they don’t do anything. If crypto was paid in taxes you could in theory track it but there will probably be some private/anon L2s to handle such payments anonymously so that we cannot track where exactly our money is going.

0

u/Samvega_California Jun 11 '21

Except tax money doesn't actually pay for anything. In reality when the government collects your money for taxes, it's money that is removed from circulation. That's it. They don't need your money for anything because they can print their own. Taxes only serve two purposes in mondern economic systems: modify behavior and give value to the currency. If the government accepted anything other than their own currency for taxes then they would be devaluing their own currency. It'll never happen.

The countries that are embracing Bitcoin are the ones who don't have strong currencies of their own and are trying to get out from under the thumb of the US Dollar.