Looking for a legitimate loophole in our tax system to save you some extra cash – a legitimate way to shaft the IRS? The state of Utah may have done you a favor. In 2011, the state of Utah passed a law banning taxes on the use of gold and silver coins as currency and permitting residents to remit state taxes in these coins. But isnt that already guaranteed in the Constitution? Currently, in federal law, if you buy things with gold, for example, you have to declare the taxable gain. But this is a federal law. Translation? Its not a real law, rather an administrative law that may be tough to enforce in court. Just think about it, though: if enough people get together and decide to make transactions in gold, “somebody might clear, for example, $3,000 in gold income a year, or $90,000 if translated into paper dollars.” And given Utah’s 2011 statute, even the most experienced business lawyers in Utah would be hard pressed to disagree that everything with that plan seems above board. And when you’re only paying taxes on $3,000, why wouldn’t you get on board with this idea? Should this little experiment start to gain a bit in extent, it could have the effect of requiring business in this country to cut their taxation costs by arbitraging the gold-note dollar spread that the United States has allowed to emerge over the past century of serious inflation. #businesslawyersinutah
Posted on: Sun, 09 Nov 2014 20:10:31 +0000
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