Prepare to defend yourselves: IRS comes after Bitcoin

[The2ndAmendment]

IRS moves to tax bitcoins | TheHill

The U.S. government on Tuesday took the first step toward taxing bitcoins, declaring that the Internal Revenue Service will treat the currency like property.

The move could lend more legitimacy to bitcoin and other fledgling online currencies, while at the same time subjecting investors to new tax obligations.

IRS Commission John Koskinen told The Hill he hoped the new IRS guidelines would provide clarity.

"Hopefully the guidance put out on bitcoins and virtual currency will answer the bulk of the questions people have about how they are going to be treated by the IRS," Koskinen said. "Our hope is it will remove a lot of uncertainty."

Under the guidance released by the IRS, wages paid to employees in bitcoins would be taxable and would have to be reported to the IRS by employers. Independent contractors paid in bitcoins would be required to pay a self-employment tax.

Bitcoin “miners,” individuals who use computers to process bitcoin transactions in exchange for transaction fees and extra bitcoins, would also have to pay a self-employment tax.

Furthermore, people who use bitcoins to make purchases would have to pay capital gains on however much their bitcoins had increased in value since they were obtained, much as one would a stock. For example, if $5 worth of bitcoin at the time of purchase had appreciated to $10, the bitcoin owner would face a $5 capital gain if those bitcoins were used to purchase an item.

Bitcoin is the most prominent of a number of virtual currencies that have emerged in recent years. The virtual currencies have gained appeal among some for the ability to conduct transactions anonymously or without the oversight of a governmental entity.

Read more: IRS moves to tax bitcoins | TheHill
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With absolutely no constitutional authority or even a mere per-existing legal precedent, the IRS will assume the arbitrary power, from thin air, to tax Bitcoin.

Many people have seen Bitcoin as the "Last Stand" against the monopolized fiat debt currency of the Federal Reserve, as a way for the People to retake control of the money supply; however, the IRS has, without any legal justification, declared itself, without Congressional approval, able to to now tax Bitcoin however they see fit.

Bitcoin is no different than bartering. If a small community bartered with loafs of bread, the IRS wouldn't be able to tax it, yet, this is exactly what the IRS has done. They are taxing civilian/citizen made objects that are used for barter.

Without a doubt, the Marxists have declared on the remaining Freemen of this world. They are determined to reduce us to poverty under the Iron Fist of Despotism.

The American Revolution itself was primary fought over the ability to print of our currency, free of British oversight, read the writing of our Founding Fathers who confirm this:

Before the war, the colonies sent Benjamin Franklin to England to represent their interests. Franklin was greatly surprised by the amount of poverty and high unemployment. It just didn't make sense, England was the richest country in the world but the working class was impoverished, he wrote “The streets are covered with beggars and tramps.”

It is said that he asked his friends in England how this could be so, they replied that they had too many workers. Many believed, along with Mathus, that wars and plague were necessary to rid the country from man-power surpluses.

“We have no poor houses in the Colonies; and if we had some, there would be nobody to put in them, since there is, in the Colonies, not a single unemployed person, neither beggars nor tramps.” - Benjamin Franklin

He was asked why the working class in the colonies were so prosperous.

“That is simple. In the Colonies, we issue our own paper money. It is called ‘Colonial Scrip.’ We issue it in proper proportion to make the goods and pass easily from the producers to the consumers. In this manner, creating ourselves our own paper money, we control its purchasing power and we have no interest to pay to no one.” - Benjamin Franklin

Soon afterward, the English bankers demanded that the King and Parliament pass a law that prohibited the colonies from using their scrip money. Only gold and silver could be used which would be provided by the English bankers. This began the plague of debt based money in the colonies that had cursed the English working class.

The first law was passed in 1751, and then a harsher law was passed in 1763. Franklin claimed that within one year, the colonies were filled with unemployment and beggars, just like in England, because there was not enough money to pay for the goods and work. The money supply had been cut in half.

Franklin, who was one of the chief architects of the American independence, wrote:

“The Colonies would gladly have borne the little tax on tea and other matters had it not been the poverty caused by the bad influence of the English bankers on the Parliament, which has caused in the Colonies hatred of England and the Revolutionary War.” - Benjamin Franklin

This opinion was confirmed by great statesmen of his era:

"I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it properly belongs." - Thomas Jefferson

History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling the money and its issuance. - James Madison

“Banks have done more injury to the religion, morality, tranquility, prosperity, and even wealth of the nation than they can have done or ever will do good.” - John Adams

English historian, John Twells, wrote about the money of the colonies, the colonial Scrip:

“It was the monetary system under which America’s Colonies flourished to such an extent that Edmund Burke was able to write about them: ‘Nothing in the history of the world resembles their progress. It was a sound and beneficial system, and its effects led to the happiness of the people.

In a bad hour, the British Parliament took away from America its representative money, forbade any further issue of bills of credit, these bills ceasing to be legal tender, and ordered that all taxes should be paid in coins. Consider now the consequences: this restriction of the medium of exchange paralyzed all the industrial energies of the people. Ruin took place in these once flourishing Colonies; most rigorous distress visited every family and every business, discontent became desperation, and reached a point, to use the words of Dr. Johnson, when human nature rises up and assets its rights.”

Peter Cooper, industrialist and statesman wrote:

“After Franklin gave explanations on the true cause of the prosperity of the Colonies, the Parliament exacted laws forbidding the use of this money in the payment of taxes. This decision brought so many drawbacks and so much poverty to the people that it was the main cause of the Revolution. The suppression of the Colonial money was a much more important reason for the general uprising than the Tea and Stamp Act.”

Our Founding Fathers knew that without financial independence and sovereignty there could be no other lasting freedoms. Our freedoms and national sovereignty are being lost because most people do not understand our money system.

All the perplexities confusion and distress in America arise not from defects of the Constitution, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit and circulation. -John Adams

The time is nigh. Prepare yourselves, the end has begun.

 

[The2ndAmendment]

So no one finds it disturbing that the IRS has made such a wild move without approval from Congress?

But anyway... I thought that money is speech, not property???? The SCOTUS said so..

Liberals have made a convoluted mockery of the Constitution.

 

[The2ndAmendment]

Interesting that the IRS is ruling it as property. I wonder if this means bitpay and other bitcoin related businesses will relocate outside of the USA now.

Good thing for payment processor www.gocoin.com that they are not in the USA

The bigger question is how could the IRS possibly enforce this? With help from the NSA?

 

[LordBrownTrout]

So if we started bartering in rocks and pebbles we could just send them bags of rocks for tax payment. I like it.

 

[The2ndAmendment]

So if we started bartering in rocks and pebbles we could just send them bags of rocks for tax payment. I like it.

I wonder if they'd make us pay the postage?

But yes, this is exactly what the IRS has done (without congressional approval at the very least). They have set a precedent that allows them to collect taxes on any items used for barter.

 

[The2ndAmendment]

So if we started bartering in rocks and pebbles we could just send them bags of rocks for tax payment. I like it.

I wonder if they'd make us pay the postage?

But yes, this is exactly what the IRS has done (without congressional approval at the very least). They have set a precedent that allows them to collect taxes on any items used for barter.

In fact, this TAX with Congress, who REPRESENTS us, is TAXATION WITHOUT REPRESENATION.

Now we have two direct corollaries to the First American Revolution. I say "first" because the "second" revolution just started today, the financial/monetary motive now exists.

 

[AvgGuyIA]

So no one finds it disturbing that the IRS has made such a wild move with approval from Congress?

But anyway... I thought that money is speech, not property???? The SCOTUS said so..

Liberals have made a convoluted mockery of the Constitution.

. I really don't know what to think. Bitcoin sounds like a scam to me. What backs it? Just somebody's opinion that's worth something?

 

[PredFan]

Simple answer, don't use bitcoin.

 

[Toro]

The IRS is merely applying current tax law to Bitcoin.

Bitcoin users claim its a currency. Profits from currency trading are taxed. Profits from trading the euro are taxed. Profits from trading the pound are taxed. Profits from trading the Canadian dollar are taxed. Profits from trading the Polish zloty are taxed. Profits from trading gold are taxed.

So profits from trading Bitcoin are taxed.

 

[The2ndAmendment]

So no one finds it disturbing that the IRS has made such a wild move with approval from Congress?

But anyway... I thought that money is speech, not property???? The SCOTUS said so..

Liberals have made a convoluted mockery of the Constitution.

. I really don't know what to think. Bitcoin sounds like a scam to me. What backs it? Just somebody's opinion that's worth something?

What backs the US dollar?

What backs gold?

An entity's worth is literally what someone is willing to trade for it. It's all "belief" aka "fiat".

 

[Old Rocks]

LOL. How many times have I heard wingnuts of whatever variety declare the end of the world for various reasons? Death and taxes. Both gonna get you

 

[pvsi]

So no one finds it disturbing that the IRS has made such a wild move with approval from Congress?

But anyway... I thought that money is speech, not property???? The SCOTUS said so..

Liberals have made a convoluted mockery of the Constitution.

Very disturbing.

 

[bucs90]

Oh Good Lord. You rednecks just clan together in some cave in Montana with your M16's already. The "get ready" act is old.

Either start the revolt or shut up already.

 

[bucs90]

WTF is a "bitcoin" anyway? You rightwingers gonna start trading in Confederate currency next?

 

[The2ndAmendment]

The IRS is merely applying current tax law to Bitcoin.

Bitcoin users claim its a currency. Profits from currency trading are taxed. Profits from trading the euro are taxed. Profits from trading the pound are taxed. Profits from trading the Canadian dollar are taxed. Profits from trading the Polish zloty are taxed. Profits from trading gold are taxed.

So profits from trading Bitcoin are taxed.

So if a gorup of people started to claim that spilt twigs was a currency, could the government then tax split twigs (medieval Tally stick system in England)?

Furthermore, even if what you claim is true, CONGRESS has to ACT in order to tax it. A group of unelected bureaucrats at the IRS do not have that authority. That is taxation without representation.

 

[The2ndAmendment]

LOL. How many times have I heard wingnuts of whatever variety declare the end of the world for various reasons? Death and taxes. Both gonna get you

Bitcoin was the only way to peaceful way overturn the parasitical welfare state. People who actually worked for a living (including small businesses and large franchises) would have eventually migrated towards Bitcoin and away from all the contractual obligations that come with Federal Reserve Notes (taxes via the 16th Amendment is one of those obligations).

There would have been no working people to support the Parasites, and thus the parasites would have had to get jobs --- that paid in Bitcoin.

But just like King of England and Parliament overthrew the Colonial Script and taxed us into oblivion with the Stamp Act, without Representation... history repeals. Think about the literal meaning of a "revolution" it's something that comes full circle, because the same despots and tyrants and their lemmings (you) abuse the hell out of the regular dude who just wants to live in peace.

 

[dblack]

Ahh... I've been waiting for this. Now Bitcoin will get interesting....

 

[dblack]

Interesting that the IRS is ruling it as property. I wonder if this means bitpay and other bitcoin related businesses will relocate outside of the USA now.

Good thing for payment processor www.gocoin.com that they are not in the USA

The bigger question is how could the IRS possibly enforce this? With help from the NSA?

Why do you think the NSA data mining was implemented? Terrorism? C'mon!

 

[boedicca]

I'm not too worked up over this. Bitcoin is a financial instrument. If people are going to invest or speculate in it, then gains and losses should be treated the same as those involving other financial assets. BTW, that means income and cap gains taxes, not a property tax.

The real issue is why we pay capital gains taxes on anything.

 

[bucs90]

Just revolt already assholes. Or shut up. Bitcoin was a gay idea anyway hahahaha!!!