Paul Krugman, who received the 2008 Nobel Prize in Economics, criticizes the crypto industry and says that it only serves for “tax evasion and illegal transactions”. The comment referred to a Bloomberg article on the Infrastructure Act, which has come under increasing criticism for a variety of reasons.
Bloomberg writer claims tax fraudsters and crypto go hand in hand
A Bloomberg opinion article entitled “Crypto Doesn’t Have to Enable Tax Cheats” takes a negative view of the situation. Author Alexis Goldstein claims the industry was deliberately designed to obscure tax practices.
“Don’t believe it. The lack of tax information from major cryptocurrency platforms has nothing to do with technological limitations. It’s a design decision. “
As an example, she cited the Uniswap token airdrop, which took place in September 2020, and went into detail. Users who qualified were given at least 400 UNI tokens, which at the time had an opening price of $ 3. Goldstein said the taxable profit was worth a few billion dollars. She added that the company was glossing over the tax ramifications, causing many to ignore their tax obligations.
“Uniswap did not send any forms to help users understand their tax liability and left it up to them to find out for themselves. Many just ignore it or turn to one of the third-party services that in some cases charge up to hundreds of dollars for tax forms. “
In response to the article, Krugman tweeted that the purpose of cryptocurrencies is to enable tax fraud and crime.