Is the US Government Coming For Your Gold?

Now that the Health Care "Reform" Bill has passed we are still finding out what is really in it. The more one discovers, the more there is to dislike. One feature that escaped most peoples attention was the requirement, beginning 1 Jan 2012 to report any sales and purchases over $600. Evidently, it was added to target the sale and purchase of coins and bullion, but by the time the law was written it included "other goods." Hoboy! You know what that means!

My plumber just put in a $600 water heater. Buy a new laptop, some gold coins, or sell your used car? Yep, all those transactions would generate a Form 1099. The "Industry Council for Tangible Assets" (yes, it exists) says it expected that provision to get tossed out of the bill before it passed, because it was so outrageous. Guess what? It's still there, because no one read the bill then and we are still discovering what other little hidden "gems" are in it. 

As explained in, "$600 Sale? Get Ready for Tax Form," Section 9006 of the Patient Protection and Affordable Care Act (Public Law 111-148) adds the requirement to use a Form 1099 to show sales, gains and losses on purchases and sales of goods as part of a trade or business.

That article adds:

The section reads (in relevant part) “SEC. 9006. EXPANSION OF INFORMATION REPORTING REQUIREMENTS. (a) IN GENERAL. – Section 6041 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsections:

‘‘(h) APPLICATION TO CORPORATIONS. – Notwithstanding any regulation prescribed by the secretary before the date of the enactment of this subsection, for purposes of this section the term ‘person’ includes any corporation that is not an organization exempt from tax under section 501(a).

‘‘(i) REGULATIONS. – The secretary may prescribe such regulations and other guidance as may be appropriate or necessary to carry out the purposes of this section, including rules to prevent duplicative reporting of transactions.’’

(b) PAYMENTS FOR PROPERTY AND OTHER GROSS PROCEEDS. –

Subsection (a) of section 6041 of the Internal Revenue Code of 1986 is amended –

(1) by inserting ‘‘amounts in consideration for property,’’ after ‘‘wages,’’
(2) by inserting ‘‘gross proceeds,’’ after ‘‘emoluments, or other’’, and
(3) by inserting ‘‘gross proceeds,’’ after ‘‘setting forth the amount of such.’’

In other words, a transaction is going to generate the requirement to file a Form 1099. It is obvious why. The government wants to make it illegal to have a transaction such as a barter or trade that goes unreported to the state. So now, whatever the exchange, if you don't file a Form 1099 you just broke the law. The reason for the need the thousands of new IRS agents as well as the massive 12-gauge pump shotgun buy for the IRS starts to become clearer now, doesn't it?

Why would the government want to do this? Some say it's because they need this information to incorporate an inevitable value added tax (VAT). Others suggest the State wants to know who has gold coins, bullion and other non-traditional assets and needs to track purchases to do it. Remember, when FDR signed Presidential Executive Order 6102 on April 5, 1933, it began a mandatory gold confiscation process that outlawed the ownership of gold. It was for the common good of course. Don't expect President Obama to wait for legislation either, since he too knows that a simple stroke of his pen can outlaw ownership of coins and bullion and fill the coffers of the US Treasury as easily as he extorted $20 billion from BP last month.

All this makes it easier to determine who has "too much." Once they know who that is, they know where to go to "spread the wealth around a bit." Once, if you told me something like I just wrote I would have thought it well beyond the realm of possibility in a place like America. But not any longer. In my ignorance I failed to grasp the momentum of progressive socialism that depends on the ignorance and dependence of those who are going to be recipients of that "spread-around-wealth."

But those were the days I never thought that a President or Congress could go outside the rule of law and seize property and assets of people and corporations. Now looking back at what the government has done in both cases without hesitation, one can see this nation of ours is now in a hybrid state. What is not clear is what follows next is complete and total economic implosion.