Posted by Chenglu Xia.
In his article, “Bitcoin Will Be Taxed as an Asset: Israel Tax Authority,” Samburaj Das states that Israel government will have a new regulation on cryptocurrency. The official tax authority is making a change, transferring bitcoin’s role from the cryptocurrency to an asset. However, Israel’s official authority is not the only one that regards bitcoin as an asset. The IRS also did the same thing; it admits the importance of bitcoins, but the precondition is that bitcoins should play a role of asset rather than cryptocurrency and should be taxed proportionately. I believe this change can make bitcoins market legal, which will also benefit the worldwide economy. If any transaction of bitcoins will be taxed, it will lead to stronger and more sustainable economic growth without some illegal transactions.
Nowadays, bitcoin is the most popular cryptocurrency around the world. It has two main characteristics. Primarily, it’s a kind of digital currency rather than fiat currency, such as USD. Moreover, it’s decentralized which use a process called mining. This process use advanced technology with some complex mathematic formulas to produce specific codes. At the beginning, most investors prefer to use this kind cryptocurrency to avoid taxation. Meanwhile, they can exchange bitcoins with fiat currency, also goods and services; and, it is difficult to track those transactions, which encourages the black market to use this cryptocurrency to carry on illegal transactions.
However, I’m considering about bitcoins’ credibility. There is no guaranteed operating organization. Bitcoin is just a virtual currency and there is no regulation when it first appeared on the Internet. I am wondering why there is an increasing number of people using this currency. In China, I heard that most people just buy bitcoins for investment. It is the similar situation with the investment in stocks, which means that most people do not regard bitcoins as a currency. They only invest in it because of high profits, although it comes with high risk. Personally, I believe that there are some organizations which use bitcoins to do illegal transactions, making high profit. Thus, bitcoin becomes a tool used for illegal purposes, which attracts the attention of national legislature. Thus, it’s profound, meaningful and effective to make the decision of taxing transactions of bitcoins.
Chenglu is an accounting major at the Stillman School of Business, Seton Hall University, Class of 2019.
Sources:
https://www.ccn.com/bitcoin-will-see-taxation-asset-not-currency-israel-authority/
https://www.investopedia.com/articles/investing/040515/are-there-taxes-bitcoins.asp
Posted by Basbibi Kakar.
According to American and European officials, United States and Iran’s are closing in on a historic agreement to limit Iran’s nuclear program. But the parties are facing problems, including when United Nations sanctions would be lifted and how inspections would be conducted.
President Obama is strongly against an agreement with Iran without curbing nuclear weapons in such a dangerous region. He also wants to reassure the world that all options would be available if Iran ultimately cheated. In an interview with New York Times, Obama said that America has Israel’s back, and he also said that he can accept a vote in Congress as long as it did not block his ability to carry out the agreement. The President said that he would make sure that Iran does not get a nuclear weapon. America also will send a clear message to Iranians that if anybody messes with Israel, America will be there.
Under Article I, section 8 of the Constitution, the Congress has power to provide for the common defense and general welfare; Congress also has the power to declare war. Congress can provide for organizing, and arming the United States. The Congress can also decide to ratify the agreement with Iran thereby restricting them or stop the process of creating the Nuclear weapon. America can go to war with Iran, since Congress has the power to organize and arm soldiers.
Obama gave new details about how international inspectors would inspect Iran’s covert nuclear sites and about how they would lift the sanctions. Obama hopes that security will be transformed in Middle East, however, the Middle East was never secure. America’s main focus is to ensure that Iran does not get a nuclear weapon.
But Iran never stopped working on their nuclear weapon. Since Iran has promised before that they would stop working toward a nuclear weapon, they have broken contract law. Contract law could be enforced and their rights to continue working the plant could be taken away. The alternative is Congress could exercise their authority under Article I to resolve the problem.
Basbibi is an economics and international trade and development major at Montclair State University, Class of 2017.