they are coming for your crypto

The ProPublica Tax Leak and Your Crypto

By benn0xake | cryptoinvesting | 10 Jun 2021

ProPublica recently published a report of leaked records showing what everybody knew: The ultrarich in the United States pay no taxes. The reports they got were raw IRS records that proved beyond a shadow of a doubt that folks like Elon Musk, Jeff Bezos and Warren Buffett are making billions and not paying shit.

The method for not paying is pretty simple. Instead of taking income from a job, the rich borrow against assets. Borrowed money isn't taxed. Because you've got the Fed promoting inflationary policies, these guys actually never have to pay these loans back, honestly. The nominal value of the assets keeps going up. Worst case scenario, they pay the money back with devalued dollars.

I follow money, so none of this is new information. And you don't have to be ultra-rich to follow the "buy-borrow-die" strategy ProPublica tries to promote as some super hidden secret formula. Anybody can do it, even wage earners. Start a side hustle and funnel your luxuries through the business as expenses. Even if you get money taken out of your check, you can legally request a tax refund. That's not the ideal way to do things — you should eventually get out of the rat race and build up assets/start a real business, but hopefully you get the point. The problem is education, not that the rich are doing something out of everyone's reach.

You can have an overseas bank account. You can buy real estate outside of the US. Even if you're working your first job and it's your first house. Right now. You don't need to join some club to do this.

Here's the larger point. Virtue signaling politicians are going to use this to tax you, crypto rich dude. And you're not really even rich. But you seem rich to wage earners, and you become a target for politicians who will say they'll target the ultra rich but end up targeting you.

For instance, that stupid G7 "global tax" isn't going to hurt Facebook or Apple, the companies these idiot politicians are naming in their campaign for the policy. If shit gets too hot, the FAANG companies will just move into better jurisdictions, just like Tesla moved from California to Texas to avoid Cali's ridiculous new laws. These policies are going to hurt you, the new jack tech guy who feels as though they have to do business in Europe or Japan to make any money. You're stupid if you believe that, but the real education isn't really made public knowledge. Jack Mallers is going to make a fortune in El Salvador plus become politically powerful, and he did this by completely circumventing the first world system.

You can bet that politicians in the US are going to view your crypto gains or crypto business as a huge target. So you've changed your life and made a couple hundred thousand. Good job. But you're nowhere near rich — one lambo and you're fuckin done. But in the eyes of these politicians, you're a target. They get to make an example of you by saying they're targeting the rich because you look rich to the morons who didn't catch crypto before 2021. The truth is that you're nowhere near rich, and the laws coming down the pike are going to make sure you never get rich.

I've said it before; I'll say it again. The government can't tax your crypto. They are taxing your citizenship. The less of a citizen you are, the less you get taxed. God help you if you're some sort of stupid patriot, but hey, you may have your reasons. But just know you're going to bear the brunt of unfair taxes.

I've found that to get rich, you have to act like rich people when it is least convenient — when you are poor. That's the only way you'll avoid this fraudulent wave of theft that's coming in the US. First of all, move away from centralized exchanges and learn about anonymity. It's an investment that is more than worth the time. That's the first investment you should make with your crypto gains.

Secondly, start new accounts that are disconnected from your CEX accounts. You'll need to use coin mixers to make this happen. It's not hard. Learn to use defi and move out of fiat using P2P exchanges.

Third, learn to use the buy-borrow-die strategy with crypto. If you don't want to go through the trouble of actually learning crypto, you can just use the same strategy Bezos and Buffett use. It's not a fuckin secret. If you bought bitcoin, you have an asset you can borrow against. Don't trade your bitcoin; don't sell it. Just borrow against it. As it stands now, you're not taxed on bitcoin purchases, nor can you be taxed on borrowed money. Use that borrowed money to live life. If you want to get really avoidy, use the borrowed money to start an LLC in crypto-friendly Wyoming. That way, you can claim expenses against any profits that you make for more tax protection without needing to hide any of it.

If you really made a lot, I would consider a second passport or real estate/residence permit in a jurisdiction without an extradition treaty with the US. A second citizenship. Something that will get you a bank account that is not connected to the US system. That way you have fiat in the real world alongside your crypto holdings and a vacation spot in case the IRS decides to audit and freeze your shit. The point is to have assets outside of the United States. The US is a declining power. These emerging markets are happier, more exciting places. It doesn't matter what you're looking for — culture, partnership, business — places like the Colombia, Singapore and the Philippines are creating societies that will lead the world forward in the coming decades while the US is having its heart attack.

I'm not a tax guy. But I do realize that you don't have to be rich to act rich. The financial system has been democratized, and you should take advantage. If you don't, then don't complain when US politicians take all your crypto money in the name of taxing the rich. You have time to start setting shit up now. Make it happen for your future generations and for yourself.


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