Good day everyone, it's TheRingMaster and for today I'll touch on a topic I believe is a big concern of the government but of big interest to the average person that wants to manage an escape some of the bad decisions governments make against the very people they are meant to support.
I'm sure you've heard a little about the government's attempt to take control over the crypto world and Blockchain and web 3. Surprise there because that's what many governments have been doing all these years to basically anything they say; they take control.
Well they've seen the future potential of Cryptocurrency and Web3 and excuse my language but they sure as hell don't like where it's going. Web3 and cryptocurrency is designed in a way that takes central control away and gives the power to everyone involved.
But the reason they hate it is not just about losing control, but they will be losing the main or biggest stream of income, the income tax they put on people.
Governments are greatly affected by income taxes. When governments do not know where your money is from and what you’re spending it on, they cannot collect any income taxes at all. This really matters because for most governments, income taxes account for the majority of their revenue.
This is just my opinion though but income tax especially in America looks like a disadvantage against the people of the nation. They didn’t even have them before 1913 though. However, today, the United States’ main source of funds comes from income taxes.
Let's do a little bit of history shall we. One thing that used to happen was that the U.S government used to take much of its revenue from tariffs; these are duties imposed on goods imported into a country from another country. And also revenue came from other forms of taxation that did not necessarily target individuals’ earnings (the income). While trying to lay hand on direct income tax however, this move had quite some legal battles within it. Even some kinds of these acts were deemed unconstitutional by Supreme Court in 1895. This was great win for those who considered income taxes inequitable.
However, at that point in time, 1913, things changed. This new Constitutional amendment basically helped the federal government to impose income tax upon American citizens without any obligation to share the funds with states or to make sure about uniformity of taxation all over the country. It was simply a very huge radical shift that only allowed government to begin levying income taxes on everyone. To me, this is not even constitutional since it contradicts original constitution’s idea whose main intention was limiting governmental power and making sure it doesn’t go beyond people’s control.
I remember they using one famous statement - Absolute Power Corrupts Absolutely
But nowadays income tax is everywhere. It form the largest source of finance for the United States’ government. The money from these taxes goes into many things like constructing roads, paying for schools as well as running the defense forces among others. Nevertheless, important as these services may be for national development; this doesn’t justify how the money is collected by governments in any way at all.
This is my opinion though but if Hive was the government, we could probably set a funding for these things without income tax that sometimes, certain not all but certain politicians abuse and embezzle
Income tax has one major setback in that they give the government a lot of power to pry into our own lives. They must know how much you earn, where it comes from, and how you spend it. This is a total breach of people's privacy. Let's be honest, nobody likes Tax day, apparently it's going to happen in the US next year on the 15th of April 2025
Tax Date information gotten from this Site
I honestly think that financial information should be private to individuals. The government has no right to delve into our personal finances just to collect taxes.
I feel like I'm talking a lot about income taxes but that's the main point I'm trying to make about why the government hates crypto because they lose the ability to track and take the taxes
Another problem with income taxes is their complexity. The tax code runs into thousands of pages and contains complex rules which are not easy for ordinary people to understand. This makes it very difficult for ordinary people to know how much they owe. Many have to engage professionals which are costly too.
I'm pretty sure you've watched some of the funny TikTok videos where the IRS visits people's houses and ask them to pay their tax and when the people ask how much they say, you decide and if you give the wrong number we'll jail you, hehehe.
- Even the Joker is afraid of the IRS, enjoy this funny video guys
All in all this system seems unfair because of its intricacy and if one may say so why should paying become such an ordeal?
Moreover, people can be discouraged from working harder or earning more money by income taxes. Taxes are based on the higher one earns. Many people feel that it is not worthwhile to work for extra hours or take up a high paying job because the additional salary will be eaten by taxes anyways so why bother and stress. This in turn slows economic activity as there is no motivation to engage in productive activities or invest in new business concepts and expansion.
I really think that ee should revert to the pre-1913 status quo according to my opinion. It is possible for the government to receive its financial requirements without imposing taxes based on personal income.
But let's be honest it's highly unlikely that government will do that which is why Cryptocurrency is really hated by them because it creates a situation where people can avoid the income taxes.
I really hope that Web3 and Cryptocurrency thrives, succeeds and becomes our ultimate future. This way we can take full control over our own finances.
I would most definitely love to get your opinions on this matter guys. Do you think the government will win the war they have created against cryptocurrency. Nowadays since they can't completely take down crypto and Web3, they won't to find a way to take control and influence it to have access to everyone.
