IRS eyeballing gold and silver trades

July 27, 2010
By Tracy R Twyman

Among the many dirty tricks and hidden provisions tucked into the recently passed health care legislation is a provision requiring small business owners and self-employed people to report to the IRS all sales and purchases of goods and services exceeding $600 in any given year. This includes the purchase of gold and silver coins and bullion. The IRS suspects that tapping into this new reservoir of previously unreported income and expenditures will generate an extra $17 billion over the next 10 years. Yes — 17 BILLION DOLLARS … OVER 10 YEARS!

To put that number in perspective, in 2007, the war in Iraq alone was costing $720 million a day. So the tax revenue generated by forcing millions of Americans to sacrifice their valuable time, effort and money to keep track of meaningless minutia that heretofore nobody even bothered to write down will, over the next decade, accumulate enough to pay for about 23½ days of war in Iraq when calculated in 2007 dollars. Just today the Defense Department announced that just over half that amount, $8.7 billion dollars of Iraq development funds have mysteriously gone missing. The initial TARP bank bailout package was $700 billion, and has since grown to several trillion.

So is the collection of revenue in the form of US dollars even the real motivation behind this legislation? Diane Pinet of the Industry Council for Tangible Assets thinks the new rules will have a particular impact on the trade of precious metals. One gold buyer from Michigan told ABC news that he will now have to fill out 10,000-20,000 new tax forms per year because of this. Considering that the last major bankruptcy of the United States federal government in 1933 resulted in the seizing of all private gold assets by force, some commentators fear that a similar plan is afoot right now, and that this is the real purpose of generating all this new intelligence on who is buying and selling precious metals. It remains to be seen whether the American public will voluntarily comply.

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