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Thursday, March 11, 2010

Competing For Dollars

I've done a number of posts on how to creatively save or earn money.  Last weekend, I did a post on  how to use online sites to your benefit ("Efficient Use Of The Online Marketplace").  In it, one of the areas that was glaringly omitted was eBay.

There was a reason for that.  It leaves a paper trail.  More accurately, it leaves an electronic trail.

Just like the example from the weekend, let's say you're looking to buy a little gold or silver for your preps.  If you go to eBay and win an auction, there is now a record that you bought those precious metals.

Even though your user name is most likely not your real name, your payment method IS tied to your real name - whether you use a credit card or Paypal.  Tying your user name and purchase  to your real name and account information is quite easily accomplished.

So what?, you say.

Let's go back to 1933.  Executive Order 6102 required everyone to turn in their gold.  You were considered a "hoarder" for not doing so, and could be fined up to the equivalent of (in today's dollars) roughly $165,000 and be sent to prison for 10 years if you disobeyed the order.  They paid you just under $21 an ounce.

Then, as a "Thank You" for your compliance, in 1934, the government devalued those dollars they forced you to take, by making the value of gold $35 an ounce.  For example, if you had been forced to sell 100 ounces for $2100, it would now cost you $3500 to buy them back.  Nice.

Call me paranoid, but when our government has shown that they are willing to confiscate something in the past, I see no reason they won't do the same thing in the future.  Governments have a way of doing that!

When you consider the dire straights our government is in at this time - very similar to the late 1920's and early 1930's - you'd be prudent to make it as difficult as possible for them to take your personal assets.

If you were considering using eBay to sell goods to make a few dollars, you might want to reconsider that as well.  It seems that there is a new IRS form that is being required by processors of electronic payments - credit cards, debit cards, Paypal, etc. - to report the sales transactions of online vendors.
Internet sellers who don't report their sales will no longer be under the radar. Starting next year, any bank or other payment settlement company that processes credit cards, debit cards, and electronic payments such as PayPal will have to issue information returns telling the IRS what merchants receive. The new returns are Form 1099-K, Merchant Card and Third-Party Payments.
Yes, their are some thresholds that must be met for the reporting to occur.  But as we have seen with recent politicians telling us, "Only the rich will see their taxes increase", the threshold for being considered "rich" seems to be moving downwards very quickly.

If you're the government, and tax receipts are shrinking, you get desperate, and start turning over every rock to find a buck.  Got any rocks to be turned over?

Accept The Challenge

Many people have the outlook that we all need to pay our fair share of taxes.  I absolutely agree with that, to a certain extent.  It seems, though, that taxes keep increasing, but the benefits keep decreasing.  They are no longer the benign entity looking out for my well being.

I have a different outlook.  I see the government as my competitor on many levels.  The most basic being, we are both competing for the dollars that I earn.  Why would I make it easier for my competitor to earn more money?

No, I'm not suggesting you break the law.  I AM suggesting that you don't make it any easier on the government to take your assets if THEY change the law.

H/T John B for the heads-up

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