And the serfs paid their taxes in whatever they produced. Chickens, bushels of wheat, jugs of wine, &c. If you don't accept money for your labor, but take something else--like gold or silver coins (which are no longer money), your income--they way they measure it on the 1040 is ZERO (in dollars)
There is a great discussion of money that illustrates your point Palani, here:
http://fofoa.blogspot.com/2010_08_01_archive.html about one third down the page:
But if you don't accept FRNs, what logic does the IRS use to tax you? Do you remember that fellow who paid his employees in gold coins? The IRS made up a rule that forced him to stop. I don't remember what that rule was--but it drives them crazy if people don't measure their compensation in FRNs.
Maybe if we used BitCoins to effect exchanges we could get out of paying taxes for as long as it takes the IRS to make it taxable. I seriously doubt that anyone reports bitcoin transactions to the IRS.
Hatha
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