I don't think the complexity would be that great. It's not like different tax rules apply, it's just a different numeraire. Now, remember, people reporting their taxes are not forced to change anything, they are just given the opportunity.
I guess the basic reason I promote currency competition is that I think people have the right no use whichever money they prefer. And in order to not give preference to the national currency, produced by the central bank, it must be possible to report ones taxes in another currency/money.
Comments
Why would the state want to take on the complexity of dealing with the situation you described, just to encourage "currency competition"?
I don't think the complexity would be that great. It's not like different tax rules apply, it's just a different numeraire. Now, remember, people reporting their taxes are not forced to change anything, they are just given the opportunity.
I guess the basic reason I promote currency competition is that I think people have the right no use whichever money they prefer. And in order to not give preference to the national currency, produced by the central bank, it must be possible to report ones taxes in another currency/money.
The purpose is not to create currency competition. The purpose would be to make it easier for citizens to interact with their Government.