Silver and 90% Tax Rates

Believe it or not, there are times when the tax rate can go as high as 90%. And if you add all of the local, sales, state, federal, medicare and other taxes, you can come close to that 90% rate. Add to that, America may get the VAT tax to help meet the surging debt. However, if you are able to hold silver bullion, you can help hedge against that taxation and inflation by using your silver to buy everyday things.

You can get around taxes. But you can avoid exposure to more expensive taxes

The first victims of the tax surge will be investors. Or more specifically, successful investors. In fact, you could argue that capital gains tax is a tax on success. So, for instance, if you buy the SLV silver ETF and make a 50% profit on the investment, it is quiet possible that the government will take 90% of your profit, leaving you with a 5% profit. Now, if you buy junk silver and silver goes up 50%, you can take that silver and buy whatever you need, (food, gas, laptop, property) and you don't have to pay the capital gains tax. You are simply trading your property for someone else's property.

Example #1:

You buy $50,000 in SLV ETF.

Silver goes up 50%

You make a $25,000 profit minus 90% capital gains tax leaving you with a $2,500 profit.

Example #2:

You buy $50,000 in Junk silver

Silver goes up 50%

You take your $75,000 in Junk Silver and buy gas, food and other everyday items, paying only the sales tax.

Silver in your hands gives your more control and more options

While you can own silver as an ETF or as a stock, the most sure way to own the precious metal is to own the silver in your hands. If capital gains taxes do explode upward, you can find legal and creative ways to get around a capital gains tax by transferring your silver into property rather than straight cash.

How fast will taxes rise?

Chances are, the President is not going to come on TV and suddenly say that taxes are at 90%. The government is good at sneaking in higher taxes. Look at smaller taxes that may rise such as capital gains tax or the collectables tax on precious metals. Also look at new taxes that may come out of nowhere. The bottom line is, all these little new taxes and increases will lead to an overall 90% tax rate for just about everyone.

Summary

As the government goes deeper into debt, Americans face a world where 90% of their earnings and capital gains will go to Uncle Sam. However, owning silver, in your hands, will give you more options on how to transfer your wealth into property, goods and services.