Mexican billionaire Ricardo Salinas believes that bitcoin can serve as a safeguard against inflation tax, as the cryptocurrency cannot be debased. In an interview with Bitcoin Magazine, Salinas emphasized that people's savings are being taken away without their knowledge or consent. He described the debasement of currency as a deceptive tactic employed by fraudsters to avoid increasing taxes or debt.
A Defense Against Inflation Tax
Salinas, the chairman of Grupo Salinas, discussed the impact of bitcoin on economies, particularly in Latin America. He highlighted the global issue of increasing inflation tax, which adversely affects people's savings, especially those relying on it for retirement. According to Salinas, bitcoin's significance lies in its resistance to taxation, particularly in hyperinflationary economies found in various Latin American countries.
Raising Awareness and Fighting Fraud
When asked about the necessary steps for widespread bitcoin adoption in Mexico, Salinas stressed the importance of people realizing that they are being scammed and robbed by both criminals and the government. He referred to them as fraudsters who commit fraud while claiming to be implementing monetary policies. Salinas urged individuals to understand the workings of the system to protect themselves, as the government is unlikely to relinquish its power to confiscate wealth willingly.
Salinas further explained that the debasement of currency serves as a cunning technique in the fraudsters' arsenal to avoid raising taxes or accumulating debt. He believes that it is crucial for everyone to grasp this concept in order to defend against such manipulations.
The Impact of a Bitcoin ETF
Regarding the potential effect of a bitcoin exchange-traded fund (ETF) on BTC, Salinas acknowledged that it would introduce a new source of demand and facilitate easier investment in bitcoin. However, he noted that the authorities in power, including Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), understand the implications and choose to block its progress. Salinas concluded that their motivation lies in protecting their means of financing government spending without relying on tax hikes.
It is clear that Salinas holds a strong belief in bitcoin's potential to counter inflation tax and protect people's savings. By raising awareness and understanding, he hopes to empower individuals to defend themselves against fraudulent practices. The billionaire also sheds light on the obstacles faced in the introduction of a bitcoin ETF, suggesting that it threatens the existing power structure. What are your thoughts on Ricardo Salinas' views? Share your opinions in the comments below.
Frequently Asked Questions
What amount should I invest in my Roth IRA?
Roth IRAs can be used to save taxes on your retirement funds. These accounts cannot be withdrawn until you turn 59 1/2. If you decide to withdraw some of your contributions, you will need to follow certain rules. First, your principal (the original deposit amount) cannot be touched. You cannot withdraw more than the original amount you contributed. If you are able to take out more that what you have initially contributed, you must pay taxes.
You cannot withhold your earnings from income taxes. You will pay income taxes when you withdraw your earnings. Let's suppose that you contribute $5,000 annually to your Roth IRA. Let's also say that you earn $10,000 per annum after contributing. On the earnings, you would be responsible for $3,500 federal income taxes. That leaves you with only $6,500 left. Since you're limited to taking out only what you initially contributed, that's all you could take out.
If you took $4,000 from your earnings, you would still owe taxes for the $1,500 remaining. In addition, 50% of your earnings will be subject to tax again (half of 40%). So even though your Roth IRA ended up having $7,000, you only got $4,000.
There are two types of Roth IRAs: Traditional and Roth. A traditional IRA allows you to deduct pre-tax contributions from your taxable income. When you retire, you can use your traditional IRA to withdraw your contribution balance plus interest. You can withdraw as much as you want from a traditional IRA.
Roth IRAs don't allow you deduct contributions. After you have retired, the full amount of your contributions and accrued interest can be withdrawn. Unlike a traditional IRA, there is no minimum withdrawal requirement. You don’t have to wait for your turn 70 1/2 years before you can withdraw your contributions.
How does a gold IRA account work?
Individuals who want to invest with precious metals may use the Gold Ira accounts, which are tax-free.
You can purchase gold bullion coins in physical form at any moment. You don't have to wait until retirement to start investing in gold.
Owning gold as an IRA has the advantage of allowing you to keep it forever. Your gold holdings will not be subject to tax when you are gone.
Your heirs will inherit your gold, and not pay capital gains taxes. It is not required that you include your gold in the final estate report because it remains outside your estate.
You'll first have to set up an individual retirement account (IRA) to open a gold IRA. After you have done this, an IRA custodian will be assigned to you. This company acts in the role of a middleman between your IRS agent and you.
Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual returns.
After you have created your gold IRA, the only thing you need to do is purchase gold bullion. Minimum deposit is $1,000 If you make more, however, you will get a higher interest rate.
You will pay taxes when you withdraw your gold from your IRA. If you are withdrawing your entire balance, you will owe income tax plus a 10% penalty.
Even if your contribution is small, you might not have to pay any taxes. There are exceptions. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.
It is best to not take out more than 50% annually of your total IRA assets. A violation of this rule can lead to severe financial consequences.
Can the government steal your gold?
Your gold is yours and the government cannot take it. You worked hard to earn it. It belongs exclusively to you. But, this rule is not universal. For example, if you were convicted of a crime involving fraud against the federal government, you can lose your gold. If you owe taxes, your precious metals could be taken away. However, if you do not pay your taxes, you can still keep your gold even though it is considered property of the United States Government.
Can I purchase gold with my self directed IRA?
Your self-directed IRA can be used to purchase gold, but first you need to open an account with a brokerage firm such as TD Ameritrade. Transfer funds from an existing retirement account are also possible.
Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts are financial instruments that are based on gold's price. They let you speculate on future price without having to own the metal. But physical bullion refers to real gold and silver bars you can carry in your hand.
How Does Gold Perform as an Investment?
The supply and demand for gold affect the price of gold. It is also affected by interest rates.
Due to their limited supply, gold prices fluctuate. Physical gold is not always in stock.
What are the advantages of a gold IRA
You can save money on retirement by putting your money into an Individual Retirement Account. You can withdraw it at any time, but it is tax-deferred. You are in complete control of how much you take out each fiscal year. There are many types available. Some are better suited to college savings. Others are intended for investors seeking higher returns. For example, Roth IRAs allow individuals to contribute after age 59 1/2 and pay taxes on any earnings at retirement. These earnings don't get taxed if they withdraw funds. So if you're planning to retire early, this type of account may make sense.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA, you don't have to worry about paying taxes on your gains while you wait to access them. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.
You can also enjoy automatic withdrawals, which is another benefit of owning your gold through an IRA. That means you won't have to think about making deposits every month. To avoid missing a payment, direct debits can be set up.
Finally, the gold investment is among the most reliable. Because it isn’t tied to any specific country, gold’s value tends to stay stable. Even during economic turmoil, gold prices tend to stay relatively stable. As a result, it's often considered a good choice when protecting your savings from inflation.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
investopedia.com
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Legal – WSJ
finance.yahoo.com
irs.gov
How To
The History of Gold as an Asset
From ancient times to the beginning of the 20th century, gold was used as a currency. It was widely accepted around the world and enjoyed its purity, divisibility and uniformity. It was also traded internationally due to its high value. Because there were no internationally recognized standards for measuring and weighing gold, the different weights of this metal could be used worldwide. For example in England, a pound sterling equals 24 carats. In France, a livre tournois equals 25. Carats of golden. Germany had one mark which equals 28. Carats.
The United States started issuing American coins in the 1860s made of 90% copper and 10% zinc. The result was a decrease in foreign currency demand, which led to an increase in their price. This was when the United States started minting large quantities of gold coins. The result? Gold prices began to fall. The U.S. government was unable to pay its debts due to too much money being in circulation. They decided to sell some excess gold to Europe in order to do this.
Many European countries didn't trust the U.S. dollars and started to accept gold for payment. Many European countries began to use paper money and stopped accepting gold as payment after World War I. The value of gold has significantly increased since then. Even though the price fluctuates, gold is still one of best investments.
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By: Kevin Helms
Title: Bitcoin: A Tool to Protect Against Inflation Tax, Says Mexican Billionaire
Sourced From: news.bitcoin.com/mexican-billionaire-advocates-bitcoin-for-wealth-protection-people-need-to-realize-theyre-being-robbed/
Published Date: Tue, 24 Oct 2023 02:30:24 +0000
