In HR 684: a disaster for gold/silver investors, I urged readers to contact their representatives in Congress to vote and work against HR 684. The bill remains a potential disaster for gold and silver investors, and many readers, judging by their calls and emails, understand this. But, too many respondents to the earlier post were concerned only about HR 684’s impact on gold and silver. The bill’s negative impacts would extend far beyond precious metals industry.
If HR 684 becomes law, it would result in a massive tax increase, which would suck money out of the private sector and send it to governments. Supporters of the bill go so far as to call the existing situation–no taxation between the states as the Founding Fathers intended–a “loophole.” Seems that whenever someone doesn’t fork over still more money to the government, it’s a loophole.
The Heritage Foundation has posted an excellent piece that details the most obvious negative impacts of the HR 684 on businesses. And, the site has excellent links to insightful articles and comments by persons who would be adversely affected by the bill.
Although I have not seen estimates of how much money would be moved from the private sector to the State by HR 684, there is no doubt that but it would be massive. The average sales tax across the US, combining all taxing authorities within states, is in the 8 percent range. Think of the billions of dollars that businesses would have to collect from consumers and then forwarded to hundreds of taxing municipalities.
Further, the bill would allow taxing authorities to impose massive regulation and taxation requirements on businesses outside their jurisdictions. Compliance with such hundreds of taxing authorities would be nightmare for businesses large and small.
If you have not yet contacted your representative in the House, please do so immediately. In HR 684: A disaster for gold/silver investors, I outlined easy ways to have your voice heard in DC. There is no need to write a lengthy letter. Simply let your rep know that you are opposed to HR 684. The bill has few supporters except for taxing authorities, which always want more money. When such issues come to the public’s attention, members of Congress mostly just “count noses.” The more “nays” they get, the better chance this bill will be killed.