Go on the Gold Standard, YOU personally!

[hagbard]

This is an idea a former political comrade and I came up with many years ago and would work even better in the current political/economic climate.

Instead of using regular fiat currency to pay for goods and services, use gold maple leaf coins instead. They come in face values of C$1, C$5, C$10, C$20 and C$50. Obviously, the gold value is much higher than face value.

Here's what you do. Say you need dental work, the dentist is asking for $1300 for the procedure. Instead, offer him $50, but that you pay with a one oz gold maple leaf coin. You now get the work done for the equivalent of around $1100, and he claims a tax benefit as a book loss for income tax purposes. Works even better in a salary/wage situation. A win-win for both parties.

Before you say "you can't do that", those gold maple leaf's are legal tender and this hasn't been challenged in the courts nor would they likely (ie; the feds) have any ground to stand on if they did.

So, lets all go on the gold standard now and forget about the gov'ts abandoning fiat currency and force it on them. I only known one person who's actually done this, so you can go next ;)

[zoober]

Will this work at the gas station? Can I pay my electricity bills like this? :D

[Igor01]

There was a legal case in the US a while ago which made a lot of noise amongst goldbugs where an employer was paying his employees's salaries in Silver American Eagles. The IRS took him to court for tax fraud or something of the sort, can't remember how the story ended.

[CCCC3333]

There was a legal case in the US a while ago which made a lot of noise amongst goldbugs where an employer was paying his employees's salaries in Silver American Eagles. The IRS took him to court for tax fraud or something of the sort, can't remember how the story ended.
The employer ended up winning.
http://www.rense.com/general78/defeat.htm

[hagbard]

The employer ended up winning.
http://www.rense.com/general78/defeat.htm

Lew Rockwell told me the employer went to jail. A few people in the states have tried it, but apparently, their coins are not legal tender. Ours are. He said it might work in Canada.

[hagbard]

Will this work at the gas station? Can I pay my electricity bills like this? :D

Could if you know the gas station owner and he's agreeable. Electric bill could be harder. :o

This person I was talking about did it with his dentist and would regularly try it when buying stuff in stores (not large chain stores).

[brunes]

Lew Rockwell told me the employer went to jail. A few people in the states have tried it, but apparently, their coins are not legal tender. Ours are. He said it might work in Canada.

You are forgetting about the cost of acquiring all these coins. And also the potential risk in holding gold, whose price is higly volatile. You might pay $1100 for a coin this week and it would be worth only 1000 the next.

As for the tax claim angle - I don't see how you could book a loss in this case at all, because you accepted payment. IE, if I am a mechanic and do a break job that has a "book value" of $150, but I only charge you $75 because you're my nephew or whatever, I can't book a $75 loss for that, because it is NOT a loss, it is just less profit - very different.

[e909]

Doesn't sound like legal tender, and you can't pay your taxes in it. Pointless.

[hagbard]

Doesn't sound like legal tender, and you can't pay your taxes in it. Pointless.

It is legal tender, you can pay your taxes with it (but why would you?)

[dark169]

the denist's loss would be offset by the capital gain should he ever use the coin for anything more then its face value.

I'd wager its still illegal from the dentists book cooking point of view, as at the start of the transaction the vendor is agreeing to a massive discount in return for a gold coin, there is an implied worth the coin greater then the face value, taxes still need to be paid if payment is received as goods in kind. What would stop you from paying with a $50 bill when the work is done, unless part of the contract (verbal or otherwise) states payment must be with the gold coin?

[zoober]

I might have better luck paying people with paintings (http://www.27bslash6.com/overdue.html).

[konfusion666]

Even if this little scheme is legal, it seems like a disingenuous way to cheat the government out of tax revenue...

I suppose it'll depend on your political orientation on whether that is actually "good" or not.

[hagbard]

Even if this little scheme is legal, it seems like a disingenuous way to cheat the government out of tax revenue...

I suppose it'll depend on your political orientation on whether that is actually "good" or not.

Government isn't my religion so its a good thing. Time for the government to earn its money like everyone else, honestly and without force. We'll all be using gold and other medium of exchange shortly anyway when the fiat money becomes (or should I say, when we realize its) worthless.

[CheapScotsman]

This is an idea a former political comrade and I came up with many years ago and would work even better in the current political/economic climate.

.... cut cut cut ...

So, lets all go on the gold standard now and forget about the gov'ts abandoning fiat currency and force it on them. I only known one person who's actually done this, so you can go next ;)If this is such a great idea and you came up with it many years ago ... how come you didn't use it, aren't using it and aren't willing to be the next person to use it?

Let us know how the wife buys into this.

[dark169]

Government isn't my religion so its a good thing. Time for the government to earn its money like everyone else, honestly and without force. We'll all be using gold and other medium of exchange shortly anyway when the fiat money becomes (or should I say, when we realize its) worthless.

are you claiming that gold has value?

Money in all its forms, even gold, only has value when society deems it valuable. If fiat money falls apart the only things of value will be guns and ammo, welcome to the modern dark ages.

A backpack full of gold in the darkness of winter is worth less then a back pack full of paper money you can at least burn for warmth :lol:

[hagbard]

If this is such a great idea and you came up with it many years ago ... how come you didn't use it, aren't using it and aren't willing to be the next person to use it?

Because till now, fiat money worked reasonably well. And given my big month, I thought it best not give the feds any ammo.


Let us know how the wife buys into this.

?


are you claiming that gold has value?

Thousands of years of history back that up.


Money in all its forms, even gold, only has value when society deems it valuable. If fiat money falls apart the only things of value will be guns and ammo, welcome to the modern dark ages.

Gold worked even in the dark ages. And yes, welcome to the dark ages.


A backpack full of gold in the darkness of winter is worth less then a back pack full of paper money you can at least burn for warmth :lol:

Lots of things I can burn other than paper currency, but a good place to start. I'll keep the gold for buying things with.

[CheapScotsman]

Because till now, fiat money worked reasonably well. And given my big month, I thought it best not give the feds any ammo.

?

Are you saying that your fiat money isn't working now? Send it to me then.

For the "?" ... Have you sold the wife on going Gold turkey only?


Thousands of years of history back that up.Coins have been around since at least 600 BC.

[i6s1]

I read about this in Readers Digest, not long after we were given the GST, thanks to decades of spending by the Liberal party.

A small town had decided to print it's own honour-bucks, or something like that. They would pay each other in this currency. The point of the scam was to avoid the GST. Reader's Digest asked the CRA about it, and they basically said that they would keep an eye on it, and do something if it caught on.

From an income tax perspective, exchanging gold obviously wouldn't work. We pay taxes based on the value of our compensation, not just in the dollars we get. If we get a living allowance or dental plan included in our compensation, the actual value is taxed. So clearly, in the opinion of the CRA any gold coins we get paid would be taxed at their actual value.

FWIW, the case in the States didn't convict on criminal charges. But they didn't say there wouldn't be tax owing.