Replying to Avatar Jonathan

I'm curious, we have all these tools to self custody and protect our bitcoin, but how do we protect against the cap gains tax man? As an American we will pay 20% no matter where we live in the world, and in Cali it's 33%

Does it just come down to non KYC purchases only to avoid tracking? Will you have to earn it directly to avoid fiat paper trail from paycheck like a cash job would now?

What are the odds the U.S. abandons its federal cap gains tax?

#asknostr
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ew0k 1y ago

Contact your local politicians, be heard. RFK Jr already started to move the Overton window towards no cap gains on bitcoin.

There’s an interesting mechanism at play here, if you hate bitcoin and want to keep the tax, you disincentivize people from spending it. The more the richest consumers are disincentivized to spend it, the higher the price goes, and the higher the price goes, the more pressure there will be to eliminate the tax.

That’s the backdrop to also watching the new rich flee your country to start businesses and spend in countries without a cap gains tax.

I think the pressure is already on!

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Jonathan 1y ago

Well said! I never thought about it from that perspective. I could leave the country, but I know that they still try to tax you abroad, but that's pretty had to enforce and like you said that might backfire on them and they will capitulate to remove the tax.