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Legal Tender Gold and Silver? This Will Get You a Prison Term.

Written by Gary North on March 29, 2012

Sometimes, Americans get the silly idea that the words “legal tender” on American coins mean legal tender. Then they try this stunt. They pay workers in silver coins at face value. This reduces the workers’ income tax bracket.

The employer who tries this is risking a prison sentence.

Variations of this story have been published repeatedly over the last half century.

This one involves a man named Robert Kahre, He is in a federal prison today.

Kahre was convicted in 2009 of conspiracy to defraud the Internal Revenue Service, tax evasion and hiding assets. But his real crime was something far more serious in the eyes of the IRS and federal prosecutors. Kahre paid his employees as independent contractors rather than salaried employees and he paid them in gold and silver coin.

By doing so, he brought unwelcome attention to the ongoing official debasement of our money supply. This action is what brought the full might of the federal government crashing down upon him. . . .

When Kahre offered to pay his workers in gold and silver, the legal tender laws should have considered those coins at face value. This means that an employee receiving 50 American Eagles annually would be making only $2,500 at face value. Therefore, the employee’s wages would fall below the threshold of reportable income.

Of course, the IRS takes umbrage at the thought of someone earning roughly $83,000 in Federal Reserve notes and not paying what the tax collectors consider their “fair share.” But there remains the issue of legal tender laws that clearly state that those Eagles are worth $50 face value.

If the federal government makes gold and silver coins that are legal tender, then why punish those who use them at face value? So which standard are we to follow? For that matter, why are there two different standards in the first place?

These troublesome questions are likely what prompted federal prosecutors to go after Kahre with a vengeance.

A federal SWAT team crashed through the gate of Kahre’s business with an armored vehicle and held Kahre’s employees at gunpoint for hours when the feds made their move. Kahre was charged with 49 counts of failure to collect or pay employment taxes, four counts of tax evasion, two counts of attempting to interfere with IRS laws and a single count of wire fraud. An uninformed jury convicted him on the judge’s instructions and he was sent to prison for 15 years and ordered to pay millions of dollars to the IRS.

He will be in prison for a long time.

The United States of America is supposedly a nation of laws. But it is not when these laws challenge the collection of taxes.

You had better be aware of what you are dealing with before you try to escape paying taxes by a legal technicality.

Continue Reading on www.stgeorgeutah.com

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12 thoughts on “Legal Tender Gold and Silver? This Will Get You a Prison Term.

  1. Obey the Constitution, go to prison. How far we have strayed away from what made this country great. The "money changers" control our once great nation, and we are but simple slaves. Ron Paul will fix it and Restore America!

  2. This action exposes the hideous and egregious theft committed by our government against all its citizens.

    A man earns $100,000 by doing $100,000 worth of work. At the time he earns the money, 100,000 will by six two bedroom houses, free and clear. He keeps it in a bank account for fifty years. At the end of fifty years, due to the government printing unbacked paper currency to spend, spend, spend, like Nancy Pelosi with a stolen credit card, the $100,000 will now only buy a single, one-bedroom condo.

    The government insists that this is legal for it to play this game. But if a citizen tries to play the same game, the IRS accuses him of theft.

    Our govenment has really gotten the idea that it is god. Perhaps that is why it doesn't want any mention of any rival God in public schools. That is what any god, including the God of the Bible says: "How dare you question my motives or my ethics? I'm God."


  3. Bobby, you are delusional to believe that Ron Paul is the answer to America's woes. I don't think that any of the current candidates are capable of doing that, but of them all, Ron Paul is the least of them. That being said, all conservative voters need to rally aroud whomever the nominee turns out to be so we can defeat Mr. O-blame-a in November.

  4. Gloria P. Sterling says:

    Did anyone else notice and read “an uninformed jury”? Then the “judge” instructed them how to vote. How unconstitutional is that? I’m not advocating someone try to “cheat” the government of what is owed (pay unto Caesar what is Caesar’s); however, I don’t appreciate the government “cheating” the citizens, either.

  5. Yes! Pray about your vote in November. Ask God to give you wisdom and guidance. The ONE TRUE GOD, that is!!!!!!!!!

  6. Wasn't this the guy who had a window right by the payroll window offering to buy those same gold and silver coins for federal reserve notes at their fair market value?

    Probably not the best way to try and show you believe the 'true' worth of that Gold Eagle is $50 when a few feet down the hall you're willing to buy it for $1500+.

  7. NoMoreMarxistsInDC says:

    The IRS is a debt collection agency for the privately-owned Federal Reserve Bank, that is owned by a few of the richest families on the planet–e.g., Rockefellers, Warburgs, Rothschilds, etc. These are the players who hold the US (and most of the world) hostage for its debt. Robert Kahre had poor legal representation and needed to hire the top anti-tax attorneys in the country, like Don MacPherson, Michael Minns, Joe Izen, David Grossack, Jeff Dickstein, Larry BeCraft, Tom Cryer, etc.- -http://www.livefreenow.org/about-us/freedom-fighters/best-freedom-attorneys.html

  8. A broader perspective will do you wonders.

  9. Look at the 1934 Federal Reserve Note

    eBay Image Hosting at http://www.auctiva.com

    FEDERAL RESERVE NOTES are legaltender. Gold & silver coins are lawfulmoney. In 1934 Silver coins wood be the lawfulmoney of the US .

    ARTICLE 1 Section 8 Powers Granted to Congress
    ARTICLE 1 Section 8 # 5 To coin money, regulatate the value thereof and of foreign coin and fix the standard of weights and measures;

    It's unconstitution for Federal Reserve to coin lawfulmoney. All coins lawfulmoney are US Treasury not Federal Reserve.

    The US pays interst to Federal Reserve on all Federal Reserve notes printed. What deal for Bankers.There no interst on lawfulmoney or US coins.

  10. "When a government becomes destructive to these ends, it is the right of the people to Alter or Abolish it".
    — The declaration of Independence.

  11. Bubba, I would say your belief that there is any distinguishable difference between a Representative bearing the letter "R" after their name oppose to a "D" is as foolish as believing in Santa Claus! They are all wolves feeding on the dumbed down (thanks to the dept of education) American sheep.

  12. lilbear68 says:

    sadly the jury was uninformed about 'jury nullification' a rule that makes judges and prosecuters have nightmares