Digital Currency Paper

Question Description

a large portion of the so-called “tax gap” results from sole proprietorsunderreporting their revenue to the extent that it is received in cash.This results in the underpayment of income tax and self-employment taxthat is actually owed to the government. One suggestion as to how toclose this portion of the “tax gap” is to switch the country to adigital currency and eliminate paper money and coins. This wouldtheoretically lead to the ability of the U.S. government to track almostall transactions of taxpayers. Do you think that a digital currencycontrolled by the government is a good idea for closing the “tax gap”?What would be some potential positives and negatives of this plan? Is itpossible that we will eventually get there without a government digitalcurrency due to the digital nature of many transactions in the currentenvironment?

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