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The fascinating case of Robert Kahre

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Cenedril_Gildinaur
Post subject: The fascinating case of Robert Kahre
Posted: Tue 01 Dec , 2009 1:06 am
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In 1985, in response to demand by "gold bugs" for minted gold coins, the Federal Mint issed a "screw you" by minting one ounce gold coins with a face value of $50. The great discrepancy between the face value and the value in federal reserve notes served as a great incentive for people to not use them as currency. Until Robert Kahre found a use for them as currency.

He paid his workers in these coins. And since the United States Congress has stated, in legislation, that these coins are worth $50, he took Congress at its word and reported the income of his employees at the face value of the coins. Because the face value of the coins was so low, they pay for his employees fell below the 1099 threshold for reporting requirements.

These were used as legal tender. These aren't the standard gold coins of investors. These aren't Canadian Maple Leafs or African Krugerrands. These are officially minted legal tender American Eagles denominated at $50.

That did not sit well with the IRS. They accused him of tax evasion. The core essence of the IRS case is that these coins are not actually worth $50. The rebuttal case is that the United States Congress has declared these to be worth $50, and that for the IRS case to be true the IRS has to accuse the Congress of lying.

So either Congress is wrong, or the IRS is wrong. These coins were declared to be legal tender at the face value. If it is illegal to use legal tender at the legal face value, then the entire monetary system is criminal. Congress declared it legal tender for all debts public and private in the amount of $50. Yes, the never intended it to be used that way, but they authorized their use that way. These are post-1985 U.S. gold coins, a whole separate issue from the earlier minted coins that had been discontinued for decades or from foreign gold coins.

Of course the employees probably sold the coins upon receiving them, but that's pretty darn irrelevant.

For the IRS to claim the employer was lying, the IRS will have to claim that CONGRESS was lying. If the IRS concedes that Congress wasn't lying when it authorized the minting of those coins, then the IRS will have to concede that the employer wasn't lying. Since both are saying the same thing, either both are lying or both are telling the truth. If both are lying, the employer can't be held responsible if he claims that he believed in good faith the lies of the congress. Of course that assumes the IRS will be honest when caught in a contradiction.

The first time the case was filed, they lodged 161 counts against Robert Kahre, and failed to get a guilty verdict on a singe one. They lost completely. That is probably because they asked their own accountants what is the proper way to calculate income for the purposes of IRS code if paid in a gold coin that has a $50 face value (as determined by congress) but an $800 precious metal value (at the time). All three of them responded with "I don't know.

The IRS, realizing that losing this case undermines the entire corrupt structure of fiat currency and tax collection based on it, refiled 57 counts that were hung in the previous trial. They won and he is now going to jail.

If he had paid his employees in FRNs and paid their taxes based on the face value of the coins, I doubt the IRS would complain. But he used the exchange rate to his advantage and not the government's advantage - and made a fool of the government in the process. Unforgivable. He paid his employees in legal tender, hasn't harmed a single person, and for thta he's going to spend the rest of his life in jail.

Liberty Watch on Robert Kahre - a good synopsis of the case.
IRS Suffers Staggering Defeat - MSM Buries Story - the first round is won by Robert Kahre.
Four-month trial ends with no convictions - Federal income tax evasion case involved nine defendants - a second story on the Kahre victory.
RICO used against federal prosecutor - Assistant U.S. attorney sued by defendant - Robert Kahre strikes back.
Prosecuting Robert Kahre for Embarrassing the Federal Reserve - the reason he is the subject of such intense scrutiny.
Subpoena seeks names -- and lots more -- of Web posters - people comment against the IRS case, and the IRS subpoena's their identities from newspaper. Joke's on them, the comments were anonymous.
Jury convicts business owner Robert Kahre of tax fraud - otherwise known as "Double Jepoardy? Never heard of it."

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It is a myth that coercion is necessary in order to force people to get along together, but it is a persistent myth because it feeds a desire many people have. That desire is to be able to justify hurting people who have done nothing other than offend them in some way.

Last edited by Cenedril_Gildinaur on Tue Feb 30, 2026 13:61 am; edited 426 times in total


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Meril36
Post subject: Re: The fascinating case of Robert Kahre
Posted: Thu 03 Dec , 2009 6:50 am
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With all the anger in the land, how long before the judgement day? Before we cut the fat ones down to size? Before the barricades arise?

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