Wednesday, July 21, 2010

Nothing at this level happens by accident. "Health Care" law goes after gold coins and the people who own them.

Schmeckel: Yiddish for small penis. Not a flattering term. Often used to describe a person in unflattering terms. -- Urban Dictionary.

I kid you not. It is no accident that Schumer protege Anthony Weiner, a left-collectivist advocate of citizen disarmament (rated F minus by both NRA and GOA) is behind this attempt to limit economic liberty as well.

It looks like we're going to have to start hosting precious metals shows (with armed guards) where we flaunt their damn regulations and dare the IRS sonsabitches to do anything about it.

I've never gotten into gold coins (not having the resources) and I prefer investing in copper, brass and lead, but I could learn to like a K-rand or two if it meant having the opportunity of demonstrating that Weiner is no weiner, he's just a schmeckel.


Congressman Shmeckel.

Gold Coin Sellers Angered by New Tax Law

Amendment Slipped Into Health Care Legislation Would Track, Tax Coin and Bullion Transactions

July 21, 2010

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.

The issue is rising to the fore just as gold coin dealers are attracting attention over sales tactics.

Section 9006 of the Patient Protection and Affordable Care Act will amend the Internal Revenue Code to expand the scope of Form 1099. Currently, 1099 forms are used to track and report the miscellaneous income associated with services rendered by independent contractors or self-employed individuals.

Coin Dealers Flipping

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.

Taking an early and vociferous role in opposing the measure is the precious metal and coin industry, according to Diane Piret, industry affairs director for the Industry Council for Tangible Assets. The ICTA, based in Severna Park, Md., is a trade association representing an estimated 5,000 coin and bullion dealers in the United States.

"Coin dealers not only buy for their inventory from other dealers, but also with great frequency from the public," Piret said. "Most other types of businesses will have a limited number of suppliers from which they buy their goods and products for resale."

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.

An issue that combines gold coins, the Obama health care law and the IRS is bound to stir passions. Indeed, trading in gold coins and bars has surged since the financial crisis unfolded and Obama took office, metal dealers said.

The buying of actual gold, as opposed to futures or options tied to the price of gold, has been a particularly popular trend among Tea Party supporters and others who are fearful of Obama's economic policies, gold industry members such as Heller and Piret said. Conservative/libertarian commentators, such as Fox News Channel's Glenn Beck, routinely tout precious metal on the air as being a safe, shrewd investment in an environment in which the financial system -- and paper money backed by the rest of the world's faith in the U.S. government's credit -- is viewed as increasingly fragile.

The recently revealed investigation by California authorities into consumer complaints against Goldline International, which has used Beck as a pitchman, and Superior Gold Group (which has not) has put a spotlight on what one liberal leaning politician, Rep. Anthony Weiner, D-N.Y., calls the "unholy alliance" between gold coin sellers, such as Goldline, and conservative talk personalities, such as Beck.

Beck, who through his spokesman, Matt Hiltzik, declined to comment for this story, and Goldline marketers portray gold coins as a better alternative to owning bullion in the event that the U.S. government ever decides, as it did under FDR in 1933, to make it illegal for private citizens to own physical gold. At that time, the U.S. dollar was still pegged to the price of gold; the gold standard was abandoned during the Nixon administration.

Rep. Daniel Lungren, R-Calif., has introduced legislation to repeal the section of the health care bill that would trigger the new tax reporting requirement because he says it's a burden on small businesses.

"Large corporations have whole divisions to handle such transaction paperwork but for a small business, which doesn't have the manpower, this is yet another brick on their back," Lungren said in a statement e-mailed to "Everyone agrees that small businesses are job creators and the engine which drives the American economy. I am dumfounded that this Administration is doing all it can to make it more difficult for businesses to succeed rather than doing all it can to help them grow."

The ICTA's Piret says identity theft is another concern because criminals may set up shops specifically to extract personal information that would accompany the filing out of a 1099.

The office of the National Taxpayer Advocate, a citizen's ombudsman within the IRS, issued a report June 30 that said the new rule "may present significant administrative challenges to taxpayers and the IRS."


Anonymous said...

I'll wager that all the pindicks in the Senate and House are stocking up their portfolios with gold. We need to demonstrate that, when they come to confiscate our wealth, ammo shall be the new currency.

Anonymous said...

Its time!

Newbius said...

I am surprised that Wall Street isn't up in arms also. Unless they have been exempted (and I would not put that past the tyrants in office), every block of 100 shares valued $6/share or greater should be tracked as well. That is literally BILLIONS of transactions per year.

I wonder how big the plus-up of IRS staffing is really going to be? Maybe they could hire some out-of-work threepers?

Steve said...

When is 'enough' going to be 'enough' of the over reaching bullshit from the collectivists?
I have a small antique gold coin my grandfather gave my mother who gave it to me just before she died. Someone's going to have to kill me to take that coin and I will not under any circumstance 'declare' it, account for it or anything else. Period.

Dedicated_Dad said...

The rage grows - daily - and becomes ever more difficult to stuff into its little cage.

Part of me wishes for mass refusal to comply with this idiocy, part hopes people will take it to its most illogical extreme and engage in "malicious obedience" -- sending in a 1099 for every single multiple of $600...

Earn a $60k annual income? Send off 100 "1099" forms. Buy a new $25000 car? 40 forms. 4 per month just for your groceries.

Again, it's plain that this is deliberate, and intended ONLY to (1) further debilitate our economy and (2) create new "criminal" offenses to be used to imprison dissenters.

Is it time yet?


Newbius said...

"I'll wager that all the pindicks in the Senate and House are stocking up their portfolios with gold. We need to demonstrate that, when they come to confiscate our wealth, ammo shall be the new currency"

Shall ammunition be tracked $0.50 at a time? If so, where does the coup tally?

Anonymous said...

Find a local coin shop.
Remove cash from bank.
Go to shop, purchase "junk" silver coins (worn and used, no collector value) and silver "rounds" (usually .999 fine, stamped by private mints, usually 1 oz, commerative medallions).
Pay with cash. No paperwork to trace or track. And cheaper then gold.

B Woodman

Anonymous said...

Anyone want to guess what the non compliance rate is going to be? 50%, 80%??
Silver is looking better and better. But they'll get around to that to.


Defender said...

They really have no clue how people are feeling. Really. They are really afraid that when the paper dollar fails -- the international money market is considering replacing it with another country's currency -- SOME peasants will still have their independence.
I was outraged by a tax service commercial in which a man asked "My son made a couple of thousand dollars mowing lawns last year. Does he need to file a tax return?"
No, no, and not just no, but HELL, no!
If they can convince us to report on ourselves, they won't need paid informants. Don't nbe intimidated.

Anonymous said...


One might get the impression, that the Marxists want all the money. They do. You see, you have to have your driver or bodyguard, fill up your Zil when you want to go to the Dacha, for the weekend.

Try not to run over the peasants, on your way out of town. They have to walk because they can't afford to drive anymore. That's only for party members.

Anonymous said...

It is certainly time to make "OUR" lists.

Anonymous said...

I heard someone talking about this where it will be used to steer people away from real money(gold and silver)to continue propping up the fiat/bogus curreny we now use.

These bastards are not only stealing the real material wealth of this nation....they are taxing and bankrupting citizens in the process.
All of the silver has been removed from our nation's coinage...where is it all now?

Almost all of the copper has been removed from our coinage, where is all that? Its not in plumbing pipe...people use PVC.

Massive disobedience and an underground economy is in order to defy this bullshit law.

Anonymous said...



Anonymous said...

One little bit at a time, 1 new law per week or month and nobody cares. Even when they lock you in your house every night,it will be OK. It's for the children, you know.

90%+ will go along with this bullshit, too dumb or scared to even care. Most of the younger people I know think this is normal acceptable behavior, the males having been neutered before puberty and then raised on Michael Jackson as a role model. And the females just adore the metro sexual crowd, they may be gay, but they have all the money.

So that leaves a few patriot types to try to straighten out this country. But as long as they keep chipping away like this, nobody wants to get froggy and make the leap all by themselves. When, just when is enough for the shitstorm to start? I also have had enough, sick to death of watching this go on every week and not a thing we can do. They will squeeze us just as they are doing now, an arrest or two a week and more laws while nothing happens to them. This can go on indefinitely, or until the banks and gov't collapse.
Yes, it's time. For a game plan.
Semper Fi,0321

Bad Cyborg said...

Oh yeah? Well I hear they're also gonna start taxing medical devices like pacemakers and prosthetics. So they're gonna be taxing the pacemaker they probably won't replace? Reckon they'll keep taxing it after the battery runs out? Wonder if they'll want to tax the $15K titanium bracket I have in my neck or the staple in my ankle.

How long, Oh Lord, how long?

Anonymous said...


It is worse than just is ANY transaction over $600.00. Sell a used car for %700.00.....fill out a 1099. Sell an old piano for $900.00, fill out a 1099.

Mass resistance is the only hope....although I have plenty of resistance for them should they knock on my door.....heh heh

Anonymous said...

Frankly, I'm not surprised one bit at this.

Anonymous said...

Who will be the first to rise up ? How many ? The first ones to oppose the obama regime will be ridiculed and denigrated. Yet they will be the true Patriots.

As it is now the sheeple could change things for the better come November. Peaceably. They won't. They will allow the Marxist to retain his power while he slowly destroys what is left of freedom in this once great country.


DB said...

I doubt too many people will be selling their gold to dealers then. If you have ever been self employed and filled 1099, then, you'll know why. The tax no matter how much you earn is 15.4% off the top before deductions, then whatever your regular income tax is after deductions. lets say your gold sold for $600 and your income tax is 6%, $600(.154)=$92.4, now if that is all you made then and you deduct a tank of gas for the travel to the dealer ($600-$50)(.06)=$33, $33+$92.4=$125, $600-$125=$475, Not including the state tax. That is the mathematical definition of rape and the reason I got out of the self employed business.

EMWONAY said...

So when are they going to come out and make sure we all know that this is law??

This would be so unpopular and so blatent a violation that I don't think for one second that they truly intend on enforcing this. It's a catch all that can be used against whoever they choose. Enforcment will be selective. As if the tax code wasn't enough already! Lol it's one more screw they can turn among thousands of screws.

It's time. It's been time.

Why buy gold or silver?? Most of the public is pretty stupid and would give you their last bite of food, last drop of water, or even let you have a go with their daughter for something shiny. Just start collecting important looking shiny objects.

Anonymous said...

I have one thing to say to the jerkwads in the immortal words of my 32 year old daughter.."be VERY afraid"....

Anonymous said...

I'd be interested to know how many precious metal (gold coins,etc) sellers and buyers supported the creation of the obama regime ? Eh ?


Anonymous said...

The $10K lower limit on reporting deposits to the IRS, for the banks, just might come lower as well. It would have to, if you think about it.....

Imagine.... A patriot makes $1,500 on some use tools from his home shop. He wants to deposit it. But "new" regulations require that anything over $1K get reported to the IRS. KNOCK KNOCK. IRS HERE. PLEASE EXPLAIN WWHHEERREE YOU RECEIVED THAT $1,500. YOU SEE, WE SUSPECT YOU CAME ACROSS IT EN MASSE, AND THERE WAS NO MATCHING 1099.

Think they wouldn't love to force reporting compliance for EVERYTHING sold, by everyone? Of course they would!

Anonymous said...

This is akin to prohibition where folks got their illegal booze-just via the underground economy.

And that's exactly what will happen when the 1099 fiasco sets up. A more virulent underground economy will take to life for all kinds of goods and services...

Taxed to death and too poor to have gold, I've invested in lowly lead. If they insist on taking it, they can have it. I'll be happy to deliver it magnum express air mail...

The sad part is these morons in DC really have no idea how pissed folks are at them.

Bob K

Steve said...

This is yet another great incentive for an underground economy to form. The more stupid laws they make, the more immoral taxes they pass, the more people will cheat.

l said...

UMMMMM HUMMMM Ok if there is such.
We know when is when and that is when they put down the ultimate gavel to our collective nuts.
Never slow to reaction but never unjust will there be a situation put upon us to ever relinquish any more of our salvation. If in fact any action renders us opposed due to life liberty and pursuit blockaded buy laws which impede our freedom there is and will be an unknowing call buy GOD to remove the device in which we have been summoned. Never play the card to demise unless. Crap WTF do these people think they are doing. I hate to think what really comes next if we have to. It aint cool or ego driven it will become a temporary absence of GOD which is hell! I think the line may be over but give it time there will be signs in the future, I really wish this wan not happening!

Happy D said...

Every small business I know the inner workings of make $600 or more purchases that would have to be reported every month.
So how is that "Starve the Monkeys" plan going to work when your drowned and ground down in paperwork?

I still recommend reading Baugh.

Remember the Koran requires that we cut off the hands of thieves.

"As to the thief, Male or female, cut off his or her hands: a punishment by way of example, from Allah, for their crime: and Allah is Exalted in power." - Quran 5:38

Now I must go dull up a rusty crosscut saw blade for the Mr. Shmeckels of the world (come the day).

Anonymous said...

This country is broke and without a hint of the catastrophe which is ensuing. The current government is hellbent on taking the Republic on a one way trip to the bottom.

Weiner wants your gold and is demanding servitude. May he reap what he sows.

I'm afraid but stiff upper lipped about what needs to come.


Bruce Krafft said...

"10,000 and 20,000 tax forms per year"

Let's see now, if there are 5,000 dealers in the US, and each one files 15,000 forms that's 75 million new pieces of paper for the ARSE -ahem!- I mean IRS paper pushers to push. I wonder if there is some way of getting more people to file them? I'm just thinking that if we shove enough paperwork down their throats, they might actually choke.

Anonymous said...

I don't invest in gold. I invest in brass, copper, and lead! That, and a little carbon, sulfur, and potassium nitrate! Worth it's weight in gold, I hear. :-)


Anonymous said...

Someone, anyone.....tell me who PHYSICALLY WROTE this forsaken healthcare bill ?

I'd like to know the names and positions of those who physically WROTE and put words to paper on this unconstitutional piece of tyranny ?

Anyone....does anyone have a NAME of any of the scoundrels who composed this POS legislation ?


suek said...

The problem I see is one of trust. You can go with an all cash underground economy, but that means that you have to know the other party in the transaction isn't going to turn you in. You're at risk for blackmail...whenever you do one of these "unauthorized" transactions. That's going to severely limit your ability to trade outside certain circles.

Happy D said...

Bruce I think you have a good idea there!

Anonymous said...

SUEK is right on the money. When the economy tanks, the sheeple who are not prepared will be co-opted by the FEDGOV into brigades of informants, just like Cuba. Rat off your bartering neighbors, and we will increase your weekly LA BOLSA with an extra ration of food, booze, dope, or whatever. Be real careful, my friends. Snitches will abound throughout Amerika.

Toastrider said...

I find it both sad and hilarious that I page through roleplaying game supplements dealing with despotic and dystopian regimes, and see parallels and similarities between these fictional monsters and the real government.

*sigh* So, how long till we're all shadowrunning?

oldsmobile98 said...


Why do you insist on being vulgar? I thought we were supposed to be the adults. Let the statists use the kindergarten tactics.

Somewhere out there, there are probably some kids reading your blog.