Recent news articles about U.S. tax law changes have prompted dozens of SurvivalBlog readers to contact me with their concerns. Some of these e-mails asked me for advice on how to minimize the impact of these tax law changes.
First let's go over the changes in the tax law that have been announced:
1.) The Federal income tax rates are increasing starting with tax year 2010, with the top tax rate jumping to 39.6%. Meanwhile they are reinstituting the death tax, creating higher capital gains taxes, and the elimination of some exemptions for people that are married and for those that have children. For a summary of the changes, see a recent post at Investors.com. ( http://www.investors.com/NewsAndAnalysis/Article/541131/201007211841/The-Tax-Tsunami-On-The-Horizon.aspx )
2.) There is a new Federal income tax reporting requirement for all goods and services by small businesses and self-employed individuals. This will especially effect coin dealers. This provision was slipped into the massive Obamacare socialized medicine legislative package that was enacted this year.. This new law requires all purchases of in excess of $600 USD to be reported on a IRS Form 1099. This has sparked an uproar. The implications of this new law are huge, especially when you consider the sheer volume of private transactions in the so-called "underground economy." Perhaps worst of all is that this new is in effect turning private citizens into unpaid IRS agents by putting this new reporting requirement on small businesses. Not only will they have to do this paperwork, but they will have to do it all at their own expense. This will undoubtedly require the hiring of hundreds and hundreds of accountants to handle this mountain of paperwork--the countless thousands of Form 1099s that will need to be filed. This is just another example of Congress not only putting unfunded mandates on the states, but also on private business.
:::for the entire post, including all links and notes, check out http://www.survivalblog.com
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