Monday, March 2, 2009

Here's an immediate action to help the struggling: remove taxation from bartered exchanges...

... not that I know anybody who actually pays taxes on this anyway, but it would be nice to decriminalize the process.

The NJ has a story today on how people are turning to bartered exchanges in tough times, which includes this segment:

Bartering can be less expensive than buying because there are few overhead costs for rent or staff. However, not all costs are eliminated. The IRS considers barter dollars as identical to real currency for tax reporting, and barterers must obtain a special form, the 1099-B.

Want change I can believe in?

Stop ripping off private individuals who exchange goods for which both parties have already paid.


City Upon The Hill said...

I don't know dawg, I think this could be abused. What if I "bartered" with the grocery store to exchange 20 dollars worth of groceries with an envelope that just happened to contain 20 dollars?

Shirley Vandever said...

LOL, City.

But something interesting....we have sold a few things on Craigs List (my husband does the work; I can't deal with it), and he has noticed that more and more people are wanting to "trade", let's say, a motorcycle for a car, or vice-versa. I think we'll see more of that.

Brian Miller said...

You'll see a LOT more of it, especially when you consider the soaring sales and income taxes at a state and local level that are passing as of late.

Only politicians could be dumb enough to pass massive tax increases in a killer recession... but people will adapt.

Anonymous said...

If the government wants to tax my barter, by damn I will insist on payin' with the economy of my goods. We barter because we are product, or service abled, and either cash shy or short. If Uncle Sam wants the tax on six dozen eggs for an oil change, just tell me where to throw them.