What are the advantages and disadvantages of the government's 'pay-as-you-earn' system for collecting federal income tax for cryptocurrency holders?

1 answers

• Nov 25, 2021 · 3 years ago
  As a cryptocurrency holder, I can see both the advantages and disadvantages of the government's 'pay-as-you-earn' system for collecting federal income tax. On the positive side, this system ensures that taxes are paid throughout the year, which can help individuals avoid a large tax bill at the end of the year. It also provides a steady stream of revenue for the government. However, there are also drawbacks. The tax rules for cryptocurrencies are complex and can be difficult to understand and comply with. Additionally, the government's ability to enforce compliance with this system may be limited due to the decentralized nature of cryptocurrencies. Overall, while the 'pay-as-you-earn' system has its benefits, it also presents challenges for cryptocurrency holders.
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