There was a great discussion on Peter Schiff’s radio program just now. The discussion involved avoiding taxes by using gold/silver dollar coins. For instance:
Instead of being paid $1300 worth of salary we instead get paid a $50 legal tender gold coin. There is less taxable income and the receiver keeps more of his money (after he sells on the open market). I think this could work for small businesses.
Anyone have any other ideas?
So…bearing in mind that you plan this to be legal, what exactly are you going to do with the money after you sell the gold coin? Somehow I can’t imagine the IRS missing out on this.
Be an independant contractor. Deduct everything.
You spend it! You can save it also. The point is you keep more of your money because it isn’t as taxable. Of course, if you are in a high tax bracket then it will help even more because being paid in $50 gold coins will lower your tax bracket. The only reason it works is because the treasury refuses to revalue the official value of gold and silver. If they did then it would be possible to have actual transactions in gold/silver and they can’t have that!
Nope.
Clayton -
Ah, I remember that case. It seems to have hinged on the fact that he used the US $50 gold coin, which is still considered legal tender. However, even if he’d used foreign gold coins (such as Krugerrands), the IRS considers income from barter to also be taxable – see here.
It sounds like they might as well put the unemployed on trial for tax evasion. I have to admit I forgot how much the government changes the rules when you find loop-holes.
Come on, the rules serve only one purpose… the government’s. To think you can find “loopholes” and exploit them is ridiculous.
However, if you remember the Hoppean principle that government workers are simply temporary caretakers of public funds, you immediately realize that the money is in plundering the public treasury not in trying to keep your hard-earned wealth out of the public treasury.
Clayton -