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|User Info||Sound money; entered at 2011-05-22 22:10:26|
I'll start with the last first:|
I really don't see why this is so controversial to a few. It's about freedom. It doesn't do away with transaction taxes, it just does away with taxes on holding money in a form other than the US dollar.
Oh, so it's all fiat currency eh? Well, I suppose you can explain this then:
Seems there's an awful lot of inflation in there here and there.... much of it while on a metallic currency. Never mind the deflation.
But more importantly is the fact that there appears to be little ability to control this for the common man, and the violence of the swings. This is extraordinarily damaging to anyone who doesn't have a "heads up" - and of course, the only people who do are the people causing it.
Finally, metallic currency means you need to bribe only a very small number of people, never mind the obvious ridiculous divisor that would have to be imposed to meet the current money supply. Of course those people don't care about what happens to everyone else so long as they get theirs, right?
Oh, so Swiss Francs and Yuan are not fiat currencies? Oh yes they are! They're "stable"? Hmmm..... well, if they're stable and fiat, there goes your top assertion and with it the rest of your argument goes down the bowl.
Remember, you said "When fiat currencies exist inflation is sure to follow." Then you destroy your own argument just a paragraph or two down, wondering why this is "controversial." It might be due to the contradiction right in front of everyone's face.
Nonsense. People transact in other currencies all the time. Further, we are treated to earnings reports every quarter where currency translation effects are discussed and dealt with. Finally there are trading institutions that permit holding your free cash in other than dollars, even for US residents. There's nothing illegal about it any more than there is on changing money between forms. It's perfectly fine.
Yes, you pay taxes on gains, and have losses you accrue against gains if you take them, but this is true for anything you hold as an asset of value that goes up or down in price. And "money" is an asset with a value.
One solution is to simply make holding any other form of money be treated for taxes purposes in the same manner as if it were dollars. Sales taxes, VAT taxes, income taxes, etc. would still apply, but gains would not. The result would be a much healthier economy, free of artificial gimmicks that try to avoid the most insidious tax of all - inflation.
Solution to.... what?
Again, you just got done telling us that you wanted to move money from one fiat currency to another but think this shouldn't result in taxable investment gains. Well, ok, why should then buying a stock that goes up in price be a taxable event? Five days a week there's a public exchange with quoted prices on these assets, and I can trade and out of them as I wish. Sounds a lot like a currency and in fact companies treat their stock as "currency" all the time. You only need to read financial newspapers for a couple of days to see a reference to it. Same with foreign currencies. Same with oil, gold, platinum, copper, wheat, corn, soy and other things, many of which have been used as "money" at some point.
Why should only what you particularly favor be exempt?
More specifically, given that the platform already includes a statement that taxation should not be on earnings or income, what you seek in the platform is already present in form and substance. Ergo it would appear there's nothing needed.
There is no "negative tax consequence", other than the obvious one - the government denominates its taxes in dollars. Therefore, you must acquire them to pay taxes. When you transact in some other currency than dollars you can choose to immediately translate the tax liability on the transaction or the entire thing to dollars if you wish, but you're not required to. The risk of loss or gain, however, remains yours until you do so.
That would be freedom of choice, right?
Further, the platform already says:
Likewise, taxation predicated upon income is a declaration that one receives more value from government based on their earnings. History, however, shows that what actually happens is that the wealthy effectively buy government. Therefore, taxation should be predicated on the voluntary act of consumption.
What you seek is already present in form, substance and function.
Its "controversial" because your premise is false and your own example makes clear that this is the case, as you assert, in your own text, that other fiat currencies are "more desirable" - after saying they ALL fail and they ALL bring inflation and debasement.