Today I read an article about a little known section in the health care reform bill that passed which will enable the U.S. government to track every gold transaction above $600 (which is half an ounce of gold at current prices) beginning in 2012. Gold dealers are fuming because they would be required to fill out paperwork (IRS Form 1099) for each transaction above $600 and gold investors are unhappy because they perceive these new rules as an increase in U.S. government’s intrusion in their private lives.
My understanding of the legislation is that the new reporting requirements affect more than just gold dealers. Small businesses apparently would also be subjected to the new reporting/tax requirements. Here is an article that discusses the impact of the new reporting/tax requirements on small businesses. If you own a small business it is a must read: Link
The new reporting/tax requirements are toxic to the U.S. economy because they burden small businesses with a lot more time-consuming paperwork, which is costly to deal with.
- In fact, the National Association for the Self-Employed predicts that the average small business owner will have to file 1250% more forms than they currently do now.
In addition, the new tax/reporting requirements may represent a decrease in privacy because the government will learn a lot more about what kind of transactions are being made.
- Some people speculate that the new reporting/tax requirements are a prelude to a VAT Tax, which would be lethal to the U.S. economy.
The fact that lawmakers approved something like this without really knowing that this was in the health care reform legislation demonstrates how irresponsible they are. It is no wonder why so many Americans loathe Congress right now…
Overall, the new reporting/tax requirements represent another reason to believe that an economic depression that exceeds the Great Depression of the 1930s is inevitable in the U.S and another reason to believe that the political system in the U.S. is broken...
