The IRS Will Tax Bitcoin As a Property


The Internal Revenue Service announced on Tuesday that it will categorize virtual currencies like Bitcoin as property, and not as a currency, a move that will impose significant taxes and regulations on the fledging market, but will likely be a boon for investors.

Payments made to employees and workers with virtual currency will be subject to federal income tax, and any payment made using virtual currency will now have to be reported in the same way as other payments made in property.

But any gains investors make from Bitcoin will be treated as capital gains, meaning they could be subject to lower tax rates.

Bitcoin ‘miners’, who verify transactions made with the virtual currency and generate new currency using complex algorithms, will now be forced to pay income taxes on their earnings, as well as payroll taxes to any employees.

Governments are beginning to step up their regulation of Bitcoin…

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Anders Aslund: 12 ways in which Putin’s rhetoric resembles Germany in the 1930s

Good article that describes the dangers of ethno-nationalism and protectionism.

Voices of Ukraine

Anders Aslund: 12 ways in which Putin’s rhetoric resembles Germany in the 1930s




Adopting the mantle of Great Russian nationalism, President Vladimir Putin’s speech in the Kremlin on March 18 offered a sharp break from his or any other modern Russian public statements. Russia can no longer be perceived as a status-quo power. Rather it has become a radical revisionist and revanchist state. All Western policy must be revised accordingly.

An awful sense of déjà vu was conveyed by Putin’s speech in both substance and form. It would seem overly provocative to suggest comparisons to Adolf Hitler’s speech declaring war against Poland in September 1939, which followed Nazi Germany’s annexation of Austria through the Anschluss in 1938, of the Sudetenland in Czechoslovakia in 1938, and of Lithuanian Klaipeda in 1939. But after Putin’s emotional, belligerent, and self-pitying performance at the Grand Kremlin Palace on Tuesday, I went back…

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