U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Old 07-06-2008, 08:44 AM
23,122 posts, read 68,391,381 times
Reputation: 47376


Caveat - don't try this at home. The scenario given in the link would, I suppose, work only in cases where minimum wage laws don't apply, such as independent contractors, or where people earn enough per hour to meet the minimum wage requirements in "old" money. If nothing else, it is good for a chuckle to show the disparity between what the government CLAIMS old money is worth (face value) and the real value on the market. I wonder if postage stamps would be treated similarly.

Robert Kahre owns a family business and instead of using paper money he paid his workers with gold and silver coins minted by the United States government. He paid them based on the “face value” of the coins. If he paid a worker a dollar an hour he paid with a silver dollar, which states on the coin that it is “one dollar” regardless of today’s value. His wages were so low that he didn’t have to file W-2 income tax forms or withhold taxes or pay workman’s comp. This upset the IRS, which charged him and his family with 161 federal tax crimes.

Link follows: Derry Brownfield -- Silver, Gold and the IRS

On September 17, the jury returned its verdict refusing to convict all nine defendants of any of the 161 federal tax crimes they had been charged with.
Reply With Quote Quick reply to this message

Old 07-06-2008, 11:20 AM
Location: Apple Valley Calif
7,473 posts, read 22,616,648 times
Reputation: 5678
I read this story in another link, and don't believe a word of it. It's another one of those guys selling a way to beat the IRS. There have been many these scam artists over the years, and most are now in jail.
YOu know the old saying, nothng is for sure but death and taxes. It's my belief you stand a better chance of living forever,than to get away with anything involving the IRS.
Reply With Quote Quick reply to this message
Old 07-06-2008, 12:09 PM
48,504 posts, read 95,531,547 times
Reputation: 18286
I think in many cases you lose by beating the IRS as they have attorneys and you pay out.Then you are like someone audited and found to own ;you are audited for years afterward.
Reply With Quote Quick reply to this message
Old 07-06-2008, 01:43 PM
3,459 posts, read 5,666,326 times
Reputation: 6677
Wouldn't the employee would owe capital gains taxes if they cashed in the coins?

As long as you're paying a tax that way, it seems like a great way to avoid SS and Medicare witholdings.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.

Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics

All times are GMT -6.

© 2005-2023, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top