All Your Gold Are Belong To ObamaCare

[sgreger1]

Lol. Here we have a double-whammy. Republicans already hated ObamaCare, until blam, pow, zoom, now its gonna mess with their Gold purchases too?, and make them pay (existing) taxes on it. LOLOLOL OMG GOLDEN DEATH PANELS ARE UPON US!



Those already outraged by the president's health care legislation now have a new bone of contention -- a scarcely noticed tack-on provision to the law that puts gold coin buyers and sellers under closer government scrutiny.

Section 9006 of the Patient Protection and Affordable Care Act will amend the Internal Revenue Code to expand the scope of Form 1099.

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. The tax code tweak is expected to raise $17 billion over the next 10 years, according to the Joint Committee on Taxation.


http://abcnews.go.com/Business/gold-...ry?id=11211611






I knew the tax collection effort would increase once this recession thing started, they wanna make sure Caesar gets every dollar that's owed to him.

[Old Frothingslosh]

I think it covers any purchases or sales over $600 in a given year. It's a good way for the government to know who has what and where to go to confiscate it.

[pactactrefugee]

Yet another reason why I did not vote for Obama!

[Snusdog]

Time to bury the gold and silver out by the well again............................. and shoot any damn Union troops you see coming.

Metaphorically of course

[lxskllr]

So, what if you buy gold at $800 per ounce, and sell it at $400 per ounce because you really need the cash? Typical double/triple/quadruple... dipping of the government :^S

[Jwalker]

Wow makes you wonder if section 9728a1 is a ban on snus. We won't know until someone reads it.

[Jwalker]

Let's not kid ourselves this is the government I meant to say makes you wonder if section 9728a1 is a 200 percent tax increase to be enacted in June 2011 and to retroactively collect the tax on previous purchases with 400 percent interest of course and fees, processing fees, and tax on those fees and processing fees.

[RobsanX]

So coin dealers haven't had to pay income tax before? Sounds like they had it pretty good for a long time.

[texastorm]

So coin dealers haven't had to pay income tax before? Sounds like they had it pretty good for a long time.

No it's not the coin dealers not paying the taxes... read it properly. If you as Rob Citizen walk into a coin dealer and want to sell grandma's 20 dollar gold piece. If they give you over 600 bucks now they have to get all your tax info and send you a 1099 at tax time. So in essence its the citizens who have been avoiding these taxes. The coin dealers aren't pissed because they will be paying more taxes, because they wont, they are pissed because if they have a brisk business now they will have to hire extra people just to deal with the paperwork. Knowing coins as I do I know the low margins you have to work with, and therefore understand this paperwork will be a burden. All because Rob Citizen isn't paying his rightful share of taxes voluntarily.

It's total bullshit, and should be repealed. I get enough 1099's as it is without having to get one from the pawn shop when I sell them my old crap one day. Besides I don't want people at the pawn shop knowing my tax info... have you seen some of the people they hire?

[RobsanX]

Ok, I didn't see that in the excerpt. I guess if I was a gold coin/bullion dealer I wouldn't like the extra reporting burden either.

[texastorm]

From the article in the link...

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.

Pat Heller, who owns Liberty Coin Service in Lansing, Mich., deals with around 1,000 customers every week. Many are individuals looking to protect wealth in an uncertain economy, he said, while others are dealers like him.

With spot market prices for gold at nearly $1,200 an ounce, Heller estimates that he'll be filling out between 10,000 and 20,000 tax forms per year after the new law takes effect.

"I'll have to hire two full-time people just to track all this stuff, which cuts into my profitability," he said.

[danielan]

All the more reason to stick with silver for your metals investing. Gold is starting to look like a bubble anyway, IMO. Or silver is ridiculously under-priced. Either way.

[texastorm]

All the more reason to stick with silver for your metals investing. Gold is starting to look like a bubble anyway, IMO. Or silver is ridiculously under-priced. Either way.

Its not just gold, it ANY PURCHASE a business makes form another business or individual over 600 dollars!

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.

Lets say you are broke, and you need to sell your Gibson Les Paul to the local pawn shop... If they give you 2500 dollars for it... you get a nice tax slip in the mail for the income!

This is not about gold, its just the coin dealers are the first to speak up.

[pactactrefugee]

[QUOTE=texastorm;313565

Lets say you are broke, and you need to sell your Gibson Les Paul to the local pawn shop... If they give you 2500 dollars for it... you get a nice tax slip in the mail for the income!

This is not about gold, its just the coin dealers are the first to speak up.[/QUOTE]
So, then your saying that you get taxed three times on the same money? Once when you earn it again when you buy the guitar then again when you sell it? Now that's the Amerikan way! Next there going to tax us for selling cars and everything else.

[texastorm]

So, then your saying that you get taxed three times on the same money? Once when you earn it again when you buy the guitar then again when you sell it? Now that's the Amerikan way! Next there going to tax us for selling cars and everything else.

Most countries have Estate or inheritance taxes. Ours was repealed but has a sunset on the repeal after this year. If you think about an Estate tax someone earned money and paid taxes all their life, and that money has been taxed, only to be taxed tremendously upon being handed down to someone else in the family. So in some cases the government can take up to 60% of the total amount after all the taxation combined. Sounds fair doesn't it?

I am actually FOR a national sales tax only IF the income tax is repealed, but I think we are headed to a national sales tax pretty soon considering how much debt we have.