More of Uncle Sam Killing Us With Taxes

Photo source: Millennial Money Man

Photo source: Millennial Money Man

If having you taxed for everything from personal income to private property to gasoline for your vehicle wasn’t enough, Uncle Sam has found another way to crawl into your wallet:

WHEN YOU EXCHANGE a $20 bill for two $10 bills, you don’t pay sales tax on the transaction, even though, theoretically, you are “buying” the tens. The notion is utterly preposterous. Yet if you purchase a gold coin that was created by the U.S. Mint and is legally usable for commercial transactions, in some states you have to pay sales tax on that coin. Uncle Sam also says people who buy and sell such coins are liable for capital gains taxes. Of course, you would never buy a silver dollar from the mint for, say, $35 and then use it to pay for a $1 candy bar, but the point is that such coins are legal tender.

Read more: Sales Of Gold And Silver Should Not Be Taxed

Posted on March 22, 2019 and filed under Taxes.