The Bitcoin Block channel received the candidate for State Deputy (Brazil), Paulo Kogos, and the CEO of SmartPay, Rocelo Lopes, to talk about cryptocurrencies, blockchain technology, and other topics.
The channel’s host, Rodrix Digital, explained: “From the way society has been organized, the effectiveness and humanitarianism of voluntary relationships become more and more evident. Still, we live under a system of coercive relationships, where money is taken from us, through taxes, to finance things that we did not previously agree on.”
Then he added: “In addition to the fact that there is no real justification for the existence of a coercive entity, the economic incentives of the tax are zero.”
“Although liberal, Milton Friedman admits it in his book ‘Free to Choose,’ where he says there are many ways to spend your money, and when you spend money that isn’t yours on someone else, you have no incentive to save money and you don’t worry about the quality of the resource obtained,” he added.
Rodrix Digital also said: “So it seems clear that the nature of Bitcoin is totally incompatible with taxes and the state, yet there are many political players who try to mix the two. The transaction declaration, for example, is a way for the state to co-opt the movement of Bitcoin.”
Another way is to pay taxes in Bitcoin. The counterpoint, which is very clear, is the “hard finger effect”, where transactions can reveal not only the movement of the payer, but also possible transfers received. However, the existence of a hard wallet could, in theory, fix this.
The full video of the conversation can be seen below:
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