I Just Filed My Taxes

One fundamental in business is NEVER take unfair advantage of another party. It will not stand, your business will be on a shaky foundation...

Our tax system is unfair. It is so very clearly designed to benefit the rich and punish the poor and middle class. It will not last, but it will not necessarily get better. It is a shaky foundation our government stands on.

I am not a tax-resistor, and have no interest in fighting the IRS, even though I understand and agree with the arguments that it is unwarranted, unconstitutional, etc for the Feds to tax US citizens.

Jesus faced this problem. He was about to enter the Temple with Peter, when a tax collector wondered if Jesus would pay the tax. Of course Jesus was not obliged to pay the tax, but in order to not give offense, Jesus had Peter go catch a fish, in the mouth of which Peter would find the coins to pay the tax. I think the point being it is a miracle if any of us pays our taxes.

The left says we need to pay taxes to help the less fortunate, the right says we do to protect our country, as though any taxes collected does either, or as though the government is the best tool to achieve either goal.

Nonetheless, there is a logic to “we print the money and set up the system, you are thriving in the system, we want some back.” It is their system, pay your tax, don’t give offense. And really, in such a rotten system it is a miracle you get the wherewithal to pay your taxes, anyway, isn’t it?

I sold some gold in 2007, financing a project. Now, I buy gold because it is real money, and to protect my savings against the risk of fake money put out by the Federal Reserve Bank, the US Dollar. Buying gold is not taxable, (at least in Washington State) because you you are just exchanging money, it is not a retail sale (which is taxable here). As such it is very common for gold to be bought and sold in exchange for cash. Indeed, the margins are so tight gold dealers will not take credit cards in payment. Of course, as a cash transaction, such sales are easily hidden form the IRS. Why would the IRS care?

Here is where it gets weird: Oil has risen in the last 5 years or so 2.5 times in terms of the dollar, 1.5 times in terms of the euro, and has not risen at all in terms of gold. Gold protects the value of your savings. The government can print all the currency they want, diminishing the value of your savings. Buying gold preserves your savings against he damage done by the government to your savings.

Now, when I sold some gold last year, I had about doubled my money in terms of dollars, but maintained the buying power I had saved a few years earlier when I converted dollars into gold.

Nonetheless, the near doubling of the price of gold in terms of dollars is considered “capital gains” and thus is taxable. Isn’t that sweet? You can protect your savings, but in doing so you accrue tax liability.

I suspect a lot of people do not know this; or worse know it and keep the capital gains off the books. I disagree. It is best to comply and complain. If you do not comply, you have nothing to complain about, but you have legal liability. It is all downside. And, if someone does break the law and get caught, we who obey the law can file friend of the courts briefs defending the crook, telling the judge we comply ourselves but understand noncompliance, since the laws are unjust. Court actions are megaphones for complaining about injustice. Perhaps a jury would rightfully render a nullification verdict.

Yes, things are going badly as the Hamiltonian adventures begin to unravel. Being self-employed, I can make money in this mess. I can save in gold instead of dollars. I can short the market instead of believe in Wall Street. But I’d much rather make money in a free system, a beneficial system, which would allow others who are now blocked from participating by democrat and republican rules, to compete with me. It is not as interesting to make money in a corrupt system designed to benefit the likes of me. If we had free markets, I’d have more and better competitors.

Bookmark this post --- Email this post