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US Government Ready To Tax Your Gold or Precursor for Confiscation?
No matter how you look at this, the new reporting requirement is not a good for anyone but our broke and out of control Federal government. It is common knowledge that people are really starting to hit up the physical gold and silver markets pretty hard. Just ask the US Mint why they keep shutting down and are unable to produce enough gold and silver eagles to meet the massive demand?
Physical gold and silver purchases are the only way to break up all the fraudulent activities taking place on the Comex, GLD, unallocated bullion accounts, and elsewhere. Right now it is easy for fraudulent bullion banks to sell paper claims to gold and silver that are impossible to deliver on. They have all sorts of ways to do this. However, as more and more people take possession of their bullion, their game becomes very difficult to continue as they scramble desperately to find the physical gold and silver bullion for delivery.
To me it is easy to see why our corrupt officials added this provision to the healthcare bill which was jammed packed with so much other information, that this little provision could be easily hidden there. In my opinion, I believe this clever attack hopes to accomplish:
- more privacy invasion
- set the stage for gold taxation
- set the stage for gold confiscation
- reduction of physical bullion demand
Obviously, a lot of people who buy gold and silver coins from local coin shops value their privacy. I am sure most of it is paid for with cash on the barrel. This new law when it takes effect in 2012, will prevent just about everyone from being able to have a private transaction as your transactions will have to be reported to our friends at the IRS. I believe the Federal government is well aware of this will or could dramatically cut physical gold sales. Which could be damaging to the gold market in general.
Also, by knowing what we buy and sell, this sets the stage for taxation. For sure if you make a gain on bullion you bought and sold, this definitely opens the door for taxation. The IRS is not going to sit around and watch you make money and not give them their cut! I could also someday see the US government creating a personal property tax for bullion similar to taxes we have for our cars, boats, real estate, etc. Once they see how much bullion is out there and how much they can make by adding a bullion property tax, I am sure they will be looking to insert a provision for this into some emergency funding bill.
Lastly, this also unfortunately sets the stage for future gold confiscation. Once you are on record for making physical gold purchases, they know who has gold! If they do decided that it is in the best interest of the country to confiscate gold, I assure you they will come knocking on your door looking for it. I can already see federal agents shaking down law abiding citizens for their gold (private property). What a sad reality.
If you want to try to have this provision repealed, then you might want to look into bill H.R. 5141 and have your congressman support it.
I would imagine that people who know about this are outraged. What’s your opinion on this new reporting requirement?
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My opinion?
Pure idiocy.
If they punitively tax gold in the US, then people will simply take it outside the US and sell it.
Either that, or they will use it directly as money.
If they prevent bullion from being taken outside the US, it will be smuggled out and/or turned into jewelry.
Gold is capital, and it will go where it is treated best.
I guess it gives us future expats a deadline to shoot for, December 31st, 2011. Wouldn’t it be great to start off the new year in a new country, a new home and a new system that wont sneak precious metal taxation into health care bills, WTF?!
John, I want to thank you for introducing me to Casey Research in your expat article. I’ve since subscribed to their daily newsletter and would like to mention four interesting points from todays email that relate to this subject. If you would like to read the original article here it is, http://www.caseyresearch.com/displayCdd.php?id=478
- This will go into effect starting on January 1st in 2012
- You may be thinking, hey i’ll just get around the $600 total and purchase small orders – “…Thus, two $500 gold purchases could be construed as active evasion and carry additional penalties.
- “It would really kill the small businessman; they’d spend their entire time filling out paperwork for the government. ” – Andy Schectman
- Good news, there are a few senators who are currently working to repeal both Obamacare as well as this precious metal reporting scheme.
We’ve got a year and a half before this thing goes through. That’s a lot of time to start learning about expatriating and John I look forward to more of your articles on the subject.
Silver at $17.76! time to scoop up some more. Cheers everyone.
@Dave Narby
Good comment Dave. No matter what the government does, it will not be able to stop gold in the long run. People will find alternative ways to work around these sort of laws.
You are welcome Dylan. Casey Research does really good work..I am glad you are enjoying their daily newsletter as do I.
Also thanks for the excerpt from their article. I plan to look more into all of this expat stuff. Maybe December 31st, 2011 is a good deadline to shoot for. It should be enough time to research and visit some places.
Hey keep me posted on any good stuff you find out. I will do the same.
I *really* enjoy “Conversations with Casey”. Its sent out weekly and its totally free. Theres not many newsletters I subscribe to and actually read EVERY single week! Highly recommended.
The other one I subscribe to is Soverign Man:
http://www.sovereignman.com/
If you are interested in becoming an expat (or are one already!!) then I can highly recommend this. He discussed all sorts of interesting topics. Again, one of the few daily email newsletters I actually read religiously…
@SW
Ok..Thanks for the recommendation for the sovereignman.com. I will look into it.
What’s to stop expats abroad who don’t want to be identified from buying gold from gold dealers outside U.S. who are not subject to U.S. tax law? That way, U.S. won’t have their info and won’t be able to knock on their doors abroad for the gold someday.