Italian Shitcoiners Will Have To Fork Over 26% Of Profits

In today's edition of YIYL (You Invest, You Lose) we take a look at the issue many shitcoiners will have to face and also bitcoiners who don't know what they own or how to use it. In bitcoin and shitcoins, you have a large cohort of people who are in it for fiat profits, they will trade regularly or try to exit at a higher fiat price over time.

When you exit a position into a fiat off-ramp it doesn't matter what asset you held and sold, once you're in fiat you play by government rules and they can enforce it as strictly as they like and there is very little you can do about it. The average shitcoiner doesn't know his arsehole from a tax filing so they don't know how best to reduce their tax burden.

They just want to put money in at x price in any shitcoin and take money out at y price of the shitcoin. Most people who do this lose money so they don't need to worry about tax, the fraction of people who make money, wind up paying tax on it.

Broke governments will always look for new revenue streams

Italy is planning to tighten regulations on digital assets, so bitcoin, shitcoins, and NFTs to take effect in 2023. The Italian government will be expanding its tax laws to include cryptocurrency trading, according to budget documentation released on Dec. 1.

Included in its 2023 budget are plans to impose a 26% levy on profits larger than 2,000 euros ( $2,062) made on cryptocurrency trading, according to Bloomberg.

If the proposed bill is signed into law, taxpayers will have the option to declare the value of their digital asset holdings as of Jan. 1 and pay a 14% tax.

The teaser tax rate is to incentivize Italians to declare their digital assets on their tax returns and also help the government create a self-doxing list of any Italian citizen with money outside the system. So anyone who doesn't want tax agents coming after them in the future will take this plea bargain now and then pay the higher rate in future anyway.

1.3 million bag holders

According to Tripe A data, 2.3% of the Italian population, which equates to about roughly 1.3 million people, own bitcoin and shitcoin assets. By July 2022, it was estimated that about 57% of crypto users were male, while 43% of users were female, with most of its users belonging to the 28–38 age group.

This is a strong cohort of earning potential and the government doesn't want the funds they earn and keep outside their system to accrue value without them getting their piece of the pie. Now the average person would think if people are going to become wealthier letting them have that wealth to spend in the economy would bring that money back into the system anyway and drive spending which you can tax.

But governments don't think that way, they think about how to get the most direct contributions and where they can choke you off as you move in and around their system of money.

Financial privacy is not a default

Personally, I think this is a bullish move for bitcoin, if you want to shitcoin and degen and you live in Italy, congrats you now have an additional 26% hurdle rate to beat in order to secure real profits which isn't going to be easy.

Your alternative is either to hold the shitcoin and watch it bleed out overtime and hope to take a profit later or hold it in bitcoin and learn to leverage it in a healthy and resonable manner.

Your other alternative is to operate in non-KYC routes which would be much welcomed, more people doing non-KYC transactions creates a more decentralised and robust economy.

Now that's my thesis but the truth is most shitcoiners will use centralised platforms or touch KYC and AML platforms to liquidate so they will have fun staying poor in the process.

Sources:

• cointelegraph.com

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Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, "I am a Jessie."

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If you liked this post, sprinkle it with an upvote or esteem and if you don't already, consider following me @chekohler and subscribe to my fanbase

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