Let's say the members of a community somewhere here in the USA decide to do all their business in gold. The dollar price of everything would be much less. A $3 latte would go for about ten gold cents, in that the price of gold on the market (circa $1267 per ounce) exceeds that of the official Treasury price  ($42.22) by a factor of thirty.

If this community is of decent size, any number of businesses and individuals could make close all their income via gold transactions. Somebody might clear, for example, $3000 in gold income in a year, or $90,000 if translated into paper dollars.

Because of the abundantly established legal precedent for treating gold and paper dollars the same, the maximum subject to taxation would be the $3000, an amount easily eliminated by the standard deduction on the income tax.

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