This had been brought up hundreds of times before. There are Cas coins, those aren't paper, but they are physical Bitcoins with a very nice design/system. Then there were BitBills which were preloaded Bitcoins onto pieces of paper that you could use, then there were 10 offshoots of Bitbills, and there are also various Bitcoin checks.
If you are talking about Bitcoin preloaded "gift cards" like you see in 7-11, that has not been done yet, and you do not need to pay tax on them. 1. They are bitcoins, 2. they aren't real. You don't have to pay taxes on any giftcards you buy at that as well.
Cassius bitcoins are great! cool looking ext love em. But 1.60BTC for 1BTC not practical. saw other peoples paper bills ext. if you could link an legal thread on selling them that would be great.
its interesting that they don't need sales tax. Is it because its currency fixed amount? like a 50 gift card is sold for 50. What is you tried to sell a 50$ gift card for 55? When do I get into trouble "counterfitting" us currency? can I mark them 1usd 5usd 100usd ext on the bill? If one were to sell them for more then face value? Reminds me of a some one who sold silver like that. He made a lot of money but ended up in jail. How does bitcoin compare?
Don't want to end up a domestic terrorist like this guy
http://www.fbi.gov/charlotte/press-releases/2011/defendant-convicted-of-minting-his-own-currency
