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http://www.liberty-watch.com/volume03/issue08/coverstory.php

In the mid-’90s, Kahre began exercising this alternate system. He compensated workers for their labor in the form of these gold and silver coins versus FRNs. The workers calculated their income and tax liability based on the face value of the coins.

One gold coin with a face value of $50 currently equals $806 in FRNs. If a worker earns a $50 gold coin each week, that person takes home an annual income of $2,600 based on the precious metal system, which is below the income-tax reporting threshold for an employee. However, the value of the coins in FRNs — $41,912 — is not. That’s the basic idea.

This story is awesome.

In the mid-’90s, Kahre began exercising this alternate system. He compensated workers for their labor in the form of these gold and silver coins versus FRNs. The workers calculated their income and tax liability based on the face value of the coins.

One gold coin with a face value of $50 currently equals $806 in FRNs. If a worker earns a $50 gold coin each week, that person takes home an annual income of $2,600 based on the precious metal system, which is below the income-tax reporting threshold for an employee. However, the value of the coins in FRNs — $41,912 — is not. That’s the basic idea.

Here's a question. Let's say your business has revenues of $1 million in FRNs. You pay 10 employees $2,600 in gold coins each.

Your payroll expenses are $26K in gold coins, or about $400K in FRNs.

So, do you deduct $26K, or do you deduct $400K? It seems to me that consistency demands that you only deduct $26K.

Thus, it seems to me that the business owner ends up paying far more taxes when he pays his employees in gold.

wow, that is a great story!

So are the US gold and silver coins "legal tender" under the laws of the United States or aren't they?

Do the anti-gold bugs understand the stupidity of their position. Not only can't you inflate it, you can't even tax it. LOL. Meanwhile, "hey hey, Bernanke, how many bills did you print today."