July 22, 2010

It's Gold for Your Health

By: AF Editors

What does purchasing gold have to do with healthcare?

Don’t worry; the government probably doesn’t know either.

Yet, “[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.” David Galland went as far as to speculate that “[the] implications of this move transcend just the precious metals. Rather, this is a deliberate step in the direction of implementing a VAT – once the government has everyone reporting essentially every transaction, taking the next step is a snap.”

With American policies decimating the value of the dollar, it makes sense for anyone with some insight to invest in gold. President Obama’s behemoth bill has ensured that this will not go without punishment either.