Gold Coin Sellers Angered by New Tax Law

abcnews.com ^ | 07/21/10 | RICH BLAKE

[DFG]

Those already outraged by the president's health care legislation now have a new bone of contention -- a scarcely noticed tack-on provision to the law that puts gold coin buyers and sellers under closer government scrutiny.

The issue is rising to the fore just as gold coin dealers are attracting attention over sales tactics.

Section 9006 of the Patient Protection and Affordable Care Act will amend the Internal Revenue Code to expand the scope of Form 1099. Currently, 1099 forms are used to track and report the miscellaneous income associated with services rendered by independent contractors or self-employed individuals.

[litehaus]

"It’s called PROGRESS."

PROGRESSIVISM ?

[drpix]

This is only Act-1. It is meant to track the Gold to better implement Act-2 which be either the FDR move - confiscation - or the European one - a “wealth tax.”

[agere_contra]

Buy bullion, not coins.

Bullion has less markup, and you can buy it by the gram if you like.

[tacticalogic]

Next you’ll start seeing “$500 Yard Sales”. The sale lasts until they’ve sold $500 dollars worth of stuff.

[ctdonath2]

So...
I earn $1200.
The government takes half that.
Leaving me with $600.
I buy some gold for $600.
It goes up, it goes down.
I sell the gold for $600.
I submit my 1099s form.
The government takes half that.
Leaving me with $300.
The government got $900 out of the deal.
WTF?

[Leftism is Mentally Deranged]

What other hidden and little noticed provisions are in the “healthcare” law? How many things are in there that the democrats knew about but “didn’t read?”
This is change without the hope.

[DrC]

Great. The government collects $1.7B a year in extra tax revenue by imposing compliance costs vastly in excess of this. There’s 6 million firms in the U.S. http://www.sba.gov/advo/research/data_uspdf.xls

Pretend each one only has 2 $600 transactions per month for which a 1099 has to be filed. That’s 144M forms. Now assume that between filing forms and IRS processing them it costs $10 per form. That’s $1.4B. If the average is 4 forms per month (1 per week), it’s $2.8B etc. I don’t know the true average, but have heard estimates that the total annual number of forms nationwide will be in the billions.

This is another classic case of Mickey Mouse accounting in the health reform bill. Health reform gets credited with $1.7B in savings, but all the compliance costs imposed on taxpayers and IRS are “hidden costs” not accounted for. From a social point of view, this new rule clearly is cost-ineffective, but Congress dumped it in the bill in its desperation to make it appear as if the true cost of the bill would be below $1T.

[Oldexpat]

This 1099 issue will swamp the govt computers make every tax return an error and will increase the volume of grey/black market. If you already own gold..then why sell it via a dealer with a 1099..when you can sell it to a private buyer for cash? I recommend that everyone should start hording some cash that will be also more valuable in a cash market. If you can buy a service for cash for less if no reports are issue..why use a check or credit card?
If you can get paid more (net) in cash than reported income..why report? The higher the taxes and reporting requirements the blacker our economy will get. We will all take up the tricks of the illegals and drug dealers.

[bert]

......The key is you will be taxed on your gold each year.....

I would argue that the point is to establish a document that is the basis for the transaction. Future gains and losses will be based on the 1099 issued at the time of the sale.

Pretty much all financial instruments have some formal document to establish a basis

[piytar]

Quick route to a thugocracy:

(1) Criminalize common acts

(2) Make compliance infeasible

(3) Arrest whomever you want based on political reasons.

See also fascism, national socialism, marxism, and all other forms of totalitarianism.

[piytar]

No “may” about it - we are slaves.

[OneVike]

This is the answer to all the people who yap about confiscation. The government doesn’t want your gold, just your life.

What do you do after you destroyed the middle classes ability to save money for their retirement?

You attack Wall Street to destroy the stocks they have in their IRA and 401Ks.

Then What do you do when all they have left is to flee to gold because the dollar is not worth the money it’s printed on?

You go after the surfs last last safe haven, you take away their gold by taxing it away.

The next move for this administration will be to outlaw the possession of any form of gold.

This is what Obama calls change, and in the end that is exactly what we will have left ,change.

Unfortunately for us though, we will not have that change in gold. Maybe copper, if we are so lucky.

[piytar]

Nope, not copper. That’s a useful industrial metal with some worth, which is why pennies aren’t copper any more.

Slag steel. Maybe. But I’m expecting plastic coins soon...

[OneVike]

OK, I’ll buy some more poker chips then....LOL

[KarlInOhio]

If you have proof of the price you paid for the gold, you only have to pay tax on the gain in the value. In your case $0.

[Glenn]

If your pee’s worth more than $600

Mine is pure Chanel No. 5

[Secret Agent Man]

Those who have the normal ups and downs of life buy both.

[Eagles6]

Good one.

[Pessimist]

“Optimists buy gold. Pessimists buy brass and lead.”

Hence I am correctly named. :)

[Errant]

The productive members of society need to stop producing as quickly as possible. The quicker this happens the quicker we get our country back.

The longer it takes, the more we are at risk of never being able to recover our country or possibly even civil existence.

Everyone concerned can start by making preparations to become self-reliant, DIY, and support local markets and independent Internet businesses.

We're not dependent on the big government or big corporations. Their existence depends upon us. That dependency has grown to a significant and unsustainable portion of our life's work.

Cloward-Piven works both ways and in the end, anyone dependent upon the government will be at a disadvantage. It's our best strategy IMO.