From: Michael Froomkin <froomkin@law.miami.edu>
Date: Sun, 15 Oct 95 10:56:26 PDT
To: Duncan Frissell <frissell@panix.com>
Subject: Crypto & Taxes [WAS Re: Cybersecurity]
In-Reply-To: <Pine.SUN.3.91.950925060508.23639B-100000@panix.com>
Message-ID: <Pine.SUN.3.91.951015135302.4606A-100000@viper.law.miami.edu>
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On Sun, 15 Oct 1995, Duncan Frissell wrote:
> On Sun, 24 Sep 1995, Rick Busdiecker wrote:
> > I'm guessing that you're talking about the fact that fully applied
> > crypto (e. g. fully anonymous digital cash) makes it essentially
> > impossible to base a tax system on income.
> Yep.
[....]
Hold on.  This is more "factoid" than "fact":  recall that income is PAID 
by people as well as EARNED by people.  Most payers have easily 
detectible physical presence and assets that can easily be attached by 
regulators.   It will be a cold day before, e.g., my employer agrees not 
to report my earnings.  And the same is true for most employers in most 
industries.  

And if it ever stops being true, we'll just get VAT, and VAT inspectors.  
So the line about death and taxes remains as true as ever, crypto or no.

A. Michael Froomkin        | +1 (305) 284-4285; +1 (305) 284-6506 (fax)
U. Miami School of Law     | froomkin@law.miami.edu
P.O. Box 248087            | http://www.law.miami.edu/~froomkin
Coral Gables, FL 33124 USA | New address, but it's still just as hot here.