- This topic has 10 replies, 1 voice, and was last updated 2 weeks ago by reddito321.
- Thursday, September 22nd, 2022 at 17:57 #380016OneThatNoseOneParticipant
Recent news has come out that Colorado residents will be able to pay their taxes in crypto. It has too much hype for too little payoff. After digging through the details, the plan actually sounds pretty terrible, if not an outright business-government scheme.
As the title says the Colorado would be able to pay personal income tax, business income tax, severance tax and withholding tax in crypto. But here’s the catch. It is done through PayPal. And Paypal charges a service fee of $1 plus 1.83% of the payment amount. At this point, you are WAY better off by converting your money to fiat and paying your taxes. Your crypto-to-fiat conversion fees shouldn’t come anywhere close to that with any half-way decent exchange.
I am very skeptical as this is the same Paypal that took almost 2 years to add deposits and withdrawals to personal wallets after initially adding crypto services. It seems to be that one of the most basic features of crypto of having full ownership of funds in a complete user-controlled wallet was intentionally delayed to squeeze as much profit as possible. This is might be a step in crypto legalization/regulation but it is not a good one.
Also, cryptocurrency generally isn’t seen as taxable by itself. You pay taxes on cryptocurrency if you sell or use your crypto in a transaction. This is because you trigger capital gains or losses if its market value has changed. This then means if you use crypto to pay tax, you also have to pay tax on that crypto.Thursday, September 22nd, 2022 at 17:57 #380017Swoopscooter
The last thing I would want to pay my taxes with. Would anyone pay for taxes with stonks?
I guess there are those flexa people buying donuts so to each their ownThursday, September 22nd, 2022 at 17:57 #380018CakeBurps
Essentially, taxes wouldn’t even be paid in crypto. Yet another “pay with crypto, but actually fiat. Enjoy paying a conversion fee on top of that.” Didn’t visa announce some upcoming way to pay with crypto, but it’s really just fiat conversion?
This really isn’t the way to increase crypto adoption. Might as well pay the taxes in Euros or some other fiat, but with a conversion to USD in the middle.Thursday, September 22nd, 2022 at 17:57 #380019Ill-Addition2024
Nice oneThursday, September 22nd, 2022 at 17:57 #380020Curvycryptoqueen
I guess any adoption is good adoption and the lack of use this service will receive could hopefully force them to find more viable solutions going forwards.Thursday, September 22nd, 2022 at 17:57 #380021dkbowl02
FunThursday, September 22nd, 2022 at 17:57 #380022dkbowl02
Converting ur crypto to fiat will also have a fee and taxable event too.Thursday, September 22nd, 2022 at 17:57 #380023magus-21
>It is done through PayPal. And Paypal charges a service fee of $1 plus 1.83% of the payment amount. At this point, you are WAY better off by converting your money to fiat and paying your taxes.
You mean it’s actually cheaper to utilize a currency that is native to an infrastructure that’s been developed and streamlined over the course of decades by thousands if not millions of developers, engineers, and financial experts as opposed to a system that is barely twelve years old and still requires shady companies that are even younger to convert your largely unregulated payments back into real money?
🤯Thursday, September 22nd, 2022 at 17:57 #380024rexxtra
This is so ridiculous. Let’s offer the people the ability to pay taxes with crpyto!!
*wait Bob, we need more money! Let’s charge a horrendous fee for if they pay with crypto…*
Absolutely brilliant.. for the people stealing peoples money 😯Thursday, September 22nd, 2022 at 17:57 #380025Slainte042
So there is additional PayPal tax on top of all other taxes.Thursday, September 22nd, 2022 at 17:57 #380026reddito321
Never have been to Colarado. Hope it’s a nice place
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