Having fun with the tax code

The US mint still puts out gold coins that are legal tender. They are mostly sold to collectors but they are still legal tender. Got that?

In fact, if you try to pass of a forged coin as legal tender the full weight of the law can come down on you regardless of whether the gold content is the same as this case proves.

So what happens if you try to pay your employees with legal tender gold coins and report their income based on the face value of the coins (i.e. the amount that the coin is legal tender for)? The full weight of the government comes down on you for tax evasion because the coins are worth more then the amount they are legal tender for. Thankfully, we still have jury system in this country so the company in question did not get convicted.

Still, I think that it is disturbing that they only got off because of a hung jury. In my opinion, it should have been a straight acquittal. How can you make something legal tender and then demand that they value it according to some other standard for tax purposes?

Granted, the construction company that was doing this was trying to help its workers avoid taxes on their wages. But lots of companies use more dubious methods then this to avoid paying taxes and get away with because it is legal. The way that most companies account for stock options would be just one example. Why pick on the blue collar companies?

If you don’t want them reporting their wages according to the face value, don’t make it legal tender. How hard of a fix is that?

Masud owns Musharraf

Comparing the capabilities of historical figures is always a little ridicules. There are so many variables involved that who is to say that this person is better then that person. But even allowing for that, I think that it is fairly safe to say that Masud was far better commander then Musharraf is.

After all, Masud had the Taliban fought to a standstill for years. And all during this time, Pakistan and radical Arabs were providing heavy support for the Taliban. There are even reliable reports of Pakistani military officers directing artillery fire on Masud positions for the Taliban. And all during this time, Masud received next to nothing from outside sources. It was for being such a pain that they brought guys all the way from Algeria just to assassinate Masud.

Contrast this with Musharraf. He is in command of a massive army that has all kinds of modern weapons. He has received billions of dollars in aid from the US. Presumably the Taliban are not receiving nearly as much aid from outside sources as they use to get. And yet, the Taliban are overrunning Musharraf’s military bases.

It would be one thing if Musharraf was having trouble chasing the Taliban out of the mountains. Every major military in the world has had trouble with guerrillas. America in Vietnam, Russia in Afghanistan, and France in Algeria just to name a few. But it was almost unheard of for the military forces of those nations to lose a fortified military out posts to a guerrilla force. In other words, they were driven out by attrition. Not by losing ground.

By contrast, The Pakistani military is losing ground to Taliban.

I use to think the relatively poor performance of the Pakistani military was because Musharraf did not want to push too hard for domestic reasons. But the latest battle resulted in hundreds of dead Pakistani solders, scores of Pakistani solders held captive, and overrun Pakistani military outposts being used by Taliban. Now the Pakistani government is begging for peace.

Maybe Musharraf has been trying all along to defeat the Taliban and has just been getting his but kicked.