The renowned Spanish economist spoke about Bitcoin and its position on taxes.
In a video titled Why the Government wants to increase its control over Bitcoin Era and which was presented within its Youtube channel, the famous Spanish economist Juan Ramón Rallo expressed to his audience his vision about the new tax reform that the Spanish government is making.
Referring precisely to this reform of the tax laws that, as we mentioned before in Cointelegraph, will focus, among other things, on the operations with crypto currencies that the Spanish have, Rallo expressed that this is a sign that the Spanish government is seeking to increase control over the assets of its citizens.
Given this scenario, the Austrian economist recalled that states, not only Spain, are currently in excessively high levels of debt and that this poses a „greater need for confiscation of the wealth of citizens“ in order to settle their accounts. „During the next decades we will go to a much more confiscatory tax regime because of its high levels of public debt,“ Rallo said about his visions for the future at the tax level.
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Bitcoin and its impossibility to confiscate
Faced with this scenario of increased „state confiscation“ of citizens, Rallo declares that we will see how „those assets that are resilient to state confiscation will be revalued,“ making reference to Bitcoin, which also mentioned that this lawsuit along with its limited emission system will make its price increase over time.
However, Rallo pointed out that he expects a Bitcoin that will be increasingly taxed, although he states that, given the impossibility of confiscating Bitcoin holdings, what is expected is to see the State convert Bitcoin „into the tax base to generate tax in Euros“.
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„They’re trying to stop Bitcoin from being an escape route from state parasitism,“ Rallo later noted, although he clarified that governments can’t really tax Bitcoin holdings on their own, since the Bitcoin system is a pseudonym and needs the citizens themselves to communicate about their Bitcoin holdings.
„It’s an impotent call for the collaboration of the victim with the executioner,“ economist Rallo said almost at the end, to make clear the idea that the government needs the voluntary collaboration of the citizens, adding as a corollary that „Bitcoin is a new counter-power to the omnipotent states.