Thursday, July 22, 2010

Taxing Gold Transactions - Another Obamacare Tax Bomb

"But we have to pass the [health care ] bill so that you can find out what is in it.
Nancy Pelosi

Well, now we are finding out all of the little stealth pieces of legislation that was in the horrendous Obama Healthcare bill. One such provision is requiring tracking - and thus tax reporting - of physical gold transactions.

ABC News reports -
"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.

Starting Jan. 1, 2012, Form 1099s will become a means of reporting to the Internal Revenue Service the purchases of all goods and services by small businesses and self-employed people that exceed $600 during a calendar year. Precious metals such as coins and bullion fall into this category and coin dealers have been among those most rankled by the change.

This provision, intended to mine what the IRS deems a vast reservoir of uncollected income tax, was included in the health care legislation ostensibly as a way to pay for it....

So every time a member of the public sells more than $600 worth of gold to a dealer, Piret said, the transaction will have to be reported to the government by the buyer...

Rep. Daniel Lungren, R-Calif., has introduced legislation to repeal the section of the health care bill that would trigger the new tax reporting requirement because he says it's a burden on small businesses."

It is no surprise really that gold coin buyers and sellers would come under closer government scrutiny. People are fleeing Federal Reserve Notes and buying gold and silver as a hedge against the inevitable inflation that will hit us.
"The rising popularity of gold is a threat to the fiat currency scheme of the federal government. It's no wonder the statists are targeting the metal with the tax code."
- Campaign For Liberty

This will be a way for the government to "register" people who buy gold (and silver too). Eventually the government will probably want to confiscate your metal too, just like FDR did (By the way - that's called theft). Plus, they are also most likely clearing the way for a VAT Tax.

Obamacare gave way too much power to the IRS.
They will be the defacto enforcers of Obamacare.

Black Market anyone?


Investor said...

All stock sales generate a 1099B form. Gold if bought for investment should be no different.

Gold "collectible" coins on the other hand are a different matter. As I heard the law, the problem is not gold but all collectibles. The problem is created in differentiang the difference of collecting as a hobby and as a business. The former has not been taxed in the past, the latter has always been taxable

Judy Aron said...

You are accepting the premise that we should be taxed on investment gains.

I don't accept that premise because it is nothing more than government theft of people's wealth. They have no constitutional right to take any part of anyone's income - but they do and people pay it out of fear.

The 16th amendment was never properly ratified.

Anonymous said...

I believe you could buy and sell using a fake name/Id.