Andover, Mass. voters to decide on silver dollars as pay alternative for town employeesSubmitted by bobbyw24 on Fri, 02/10/2012 - 09:14
In his petition, which received the minimum 10 signatures from registered voters to make it onto the Town Meeting warrant, Shapiro states that as of last month, the exchange rate for a $1 silver coin is $35. Employees who choose to receive part of their earnings in silver coins would realize savings by way of paying less taxes, he said.
An employee making $1,000 a week, for instance, may choose to receive half of those wages in silver coins: The town would pay $500 in paper dollars and $500 based on the exchange rate of the silver coins, Shapiro said. Based on the January exchange rate, $500 would be the equivalent of roughly 14 silver coins. So the employee would receive $514 ($500 for their approximate value when sold and $14 for their face value) in wages, instead of $1,000, thereby falling to a lower tax bracket and paying less in taxes, Shapiro said.
The tax savings also would apply to the town, as it would only have to withhold taxes on the face value - not the higher market value - of the coins, he said.