What most voters don't realize about high tax rates is that the rich (and wealthy) don't pay them. When a rate gets high enough, they simply arrange their financial affairs as circumstances demand or, they simply leave. Therefore, high tax rates are SYMBOLIC, not real, for both individuals and businesses. They're designed to win votes and affect progressive imagery. If you have a problem visualizing this, then think about the various assault weapons bans we've had in America since the 90s and how utterly useless they've been. Imagery. Symbolism. And it's not just the Left that's guilty.
Tax havens and shelters should really be used by more Americans, but many mistakenly believe these to be illegal, or they think of them as exclusive tools for the rich and wealthy, or they simply have never put in the time to understand them. Well, they should, and something interesting is happening in the major tax havens. You see, with the rise of Decentralized Finance and the event horizon of interoperability encroaching, many of these tax havens have realized the enormous threat posed to their business model by crypto. As such, they've quickly enacted incentivizing (dare I say enticing) cryptocurrency legislation. And it's working. They've wisely done the opposite of trying to fight crypto with [failed] drug war tactics. Take the country of Singapore for example (population half that of NYC), and look at the number of Ethereum validator nodes operating there. It's staggering, and many of these nodes belong to centralized exchanges as well as individuals. Even Vitalik Buterin spends an enormous amount of time there. If Singapore had the cheap energy of say a Kazakhstan, Bitcoin mining would be raging in Singapore after the Xingjiang province crackdown in China. With the staking rewards tax legislation likely to pass here in the United States in September when congress is back in session, expect this to augment.
The Singapore of the US are the Cayman Islands, and the Singapore of Europe is Luxembourg, Switzerland, and oddly Ireland (not Northern Ireland, that's part of the UK). But several unexpected Latin American countries are wising to the benefits too. I was in Mexico recently (fuck I love that country I don't care what anyone says, I'll probably retire there) and was somewhat shocked by how many businesses accepted Bitcoin. Then doubly shocked by the Bitcoin mining growth. I was biking in the mountains east of Puerto Vallarta and suddenly there was this huge solar farm which I assumed powered the costal city. Later I found out it was "Jalisco cartel" property. For the "Beetcoin." A bit of business which apparently has helped see a large decrease in violence. There were others though, and one in this small town was really cool: so everyone in the town bought into it and owned a small share and were paid every evening on their phones. I don't know, I just wasn't expecting to see infrastructure like this in Mexico just yet.
So the whole purpose of this writeup was to ask the thread if they'd be interested in a small user's manual on cryptocurrency tax strategies (for educational purposes only) which will include DeFi techniques and simple offshore procedures. It would be geared towards Americans (sorry everyone else, I don't know your tax laws) and focus on the close proximity opportunities in Latin America and Grand Cayman. I'll collaborate with a tax attorney on this as well. I hope to make everything extremely accessible and relevant for anyone owning ~5 or more ETH. One caveat however, will be that the techniques will require users to mostly leave CEX's (centralized exchanges) behind, which I imagine many are not comfortable doing just yet. Anyway, I'd like to post it here next week, and I'll get my account/wallet linked to accept 🍩 too.
Lastly and unrelated, I hope many of you are following the major points of the SmartCon Summit that started yesterday. Some absolutely mind-blowing things being talked about there with regard to the EVM's top dapps. G'day.
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