This report was originally published by Clint Siegner at Money Metals Exchange
Inflation is the most pernicious of taxes levied by our government. Officials systematically devalue the Federal Reserve Note “dollar,” then levy capital gains taxes on assets when their dollar price rises.
The “gains” are largely illusory. Rising asset prices over time reflect the fact that the dollar buys less of everything. But the tax obligations triggered by this inflation are very real.
Bills calling for the elimination of capital gains taxes on money, i.e. precious metals, have recently been introduced in both Idaho and Arizona.
Money Metals Exchange president Stefan Gleason testified at the hearing and pointed out that “by taxing so-called gains on exchanging precious metals for devalued Federal Reserve Notes, we’re adding another tax on top of the inflation tax.”
Idaho State Representative Ron Nate adroitly observed, “Citizens aren’t allowed to declare capital losses when the dollars they hold lose value. So, it isn’t fair to tax capital gains when the gold and silver they own rises in value.”
The Idaho bill – HB206 – passed the House Committee on Revenue and Taxation last Thursday and is expected to come up for a vote on the house floor in the coming days.
The Arizona House of Representatives passed its own version of the Idaho bill, HB2014, in mid-February, sending it on to the state Senate which is holding a hearing this Wednesday. Former Congressman Ron Paul is scheduled to testify.
Meanwhile, Alabama, Tennessee, Virginia, and Maine are working to eliminate sales taxes on gold and silver bullion.
Supporters of sound money are working hard to reestablish gold and silver as money according to state law and to make sure it is treated as such in the tax code. Trading one form of money for another should not trigger any tax. There is no sales tax when customers swap their precious metals for dollars, so switching dollars to bullion should also be tax exempt.
Oklahoma, Utah, Texas, Idaho, and nearly 20 other states already exempt precious metals from sales tax. Utah and Oklahoma have gone one step further, reaffirming the U.S. Constitution’s designation of gold and silver as legal tender. As such the metals are free from all state taxes – including capital gains.
Texas and Tennessee have both approved measures to establish precious metals depositories in their states. Utah legislators are now considering a bill to authorize the same. The idea is to facilitate ownership of gold and silver bullion in state-run investment funds including pensions.
These funds are in desperate need of diversification. Most are stuffed with conventional paper assets which are at risk of going up in smoke in the event of hyperinflation in the U.S. dollar, or another 2008 style financial crisis.
State depositories will also open the door for citizens to more easily use gold and silver in transactions. Parties who have a metals holding in a state depository would be able to make payments to one another by simply and instantly transferring title to the bullion. This would avoid the expense and time delay required in transferring the physical bars.
The movement for honest money is alive and growing. And it is vitally important. The deficits, the mountains of unpayable debt and the metastasizing state and federal governments were all made possible using the black magic of fiat money.
Markets assume all obligations will be “met” when a government can print what is needed. It is simple for politicians to promise the moon and stars when they do not need to raise taxes to fund programs. They simply borrow or print what is needed.
The real prize will be sound money through federal reforms, or state nullification of federal laws and institutions including the Federal Reserve. With the groundwork being laid now, we are perhaps just one crisis away from a return to honest money nationwide.
Clint Siegner is a Director at Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals’ brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.
It is too bad that the conservative Republican Governors at the Nation Governors Association last week did not discuss this topic and develop a plan for independent state banks that facilitate Constitutional money.
Great news. I’m all for it as I have a mountain of precious metal. But what is everyone else going to do for gold & silver.
There isn’t enough to go around. Not by a long shot. 🙁
Every single State in the Union needs to take this QUE from The Idaho bill – HB206 Send this info and other similar bills like AZ’s to your REPS, to make Gold and Silver Legal Tender for commerce and debt payments satisfactions. Demand your Own STATES LEGISLATURE AND REPRESENTATIVES to pass this in your own state. The States and their Counties, need to start taking in Gold and Silver in as Legal Tender Payment for all Taxes, Property Taxes and any other forms of Fees assessed or Income Taxes. You see, the more PM’s they can accumulate and take in, in this form of payment the better off and stable your Own State will become economically. Especially at these low prices. As the PM’s increase in value they will climb out of their Debt. And the more people use PM’s for commerce, the less the FED Reserve has control of our economy. Phase these bastards OUT and their phony monopoly out of existence forever. They are Frauds and they need to be destroyed ASAP!!! Gold and silver can be minted or in Bullion for trade and commerce. A frigging Law can change this economy.
No single nation can move to a metals backed money without a HUGE spike in demand for that currency and the giant sucking sound that follows as the gold reserves of that one nation are set upon by all of the others.
Because gold is real wealth and the bankers know it.
Besides as long as the central bankers can ascribe value to paper at various denominations and have the populace use it to facilitate transactions, why would they move to metal ???
Not gonna happen.
Digital dollars are coming as I have said in times past. (Yes its in the archives). Digital dollars, and yuan, and yen, and swiss francs, and euros, and pound sterling will characterize our digital accounts. FX is the largest market in the world and it is controlled by the central banks. Thus it is a major PROFIT CENTER.
And that is the bottom line, “one world currency”.
Its just a few years away and IBM has just now initiated a scheme for software developers to create software programs to bridge the gap between conventional computers and quantum computers.
Yeah, its gonna happen. 🙁
Perhaps copper could be used as well for smaller denominations. What comes around goes around.
what happened to Sixpack??? I see Eppe passed away RIP.
There’s going to be state nullification of federal law? Didn’t AZ already try that? Along with a bunch of other states that thought they were somehow free to do that too on all sorts of lesser issues.
Somehow I figure that the way that things are going, I think that 7/11’s will be more likely to be forced to accept pesos before they are required to accept SilverMoney(TM).
Many stores in South Texas already accept Pesos as a matter of convenience; just like border stores in the North accept Canadian Dollars and vice versa. Accepting the next door neighbor’s money is common around the world.
So Texas may be ahead of the curve.
I know when I went through Canada along that border they took American money, only because my arrogant friend didn’t think that we needed to use their currency. He said that they would rather have our dollars anyway, so we didn’t need to exchange ours for theirs. Yeah, o.k.. The waitress at the restaurant wasn’t too happy about it. I don’t know what the exchange rate was at the time. I guess the waitress would have to check it daily herself.
That trip ended a day early. We put on over 650mi in one day on motorcycles to end it. All I know that I myself don’t want to be handed their tokens instead of our tokens.
” backed by the full faith and credit of the United States government “.
( insert sarcasm here ) I guess that would explain the demand for pm’s .
Joey Bagels ain’t lying. Its coming down to assets. If its not in your hand, you don’t own shit. Give new meaning to tangible assets..
Yes Stuart, the numbers do match up don’t they. The Question is this, what is the kind of curve will we be expecting by the end of March, since the WebBotts is showing us that by the time April comes around, we are diving into economic mayhem. I believe it will be sudden, will catch people off guard. California will try to exit once that takes place, Obama will use the 5th column chi-com, Russians, jihadist to attack the White House and remove Trump. Its a mess I tell you guys, its a mess.
The polarization is condensing into support of the Constitution, or not. We have accomplished everything our Founders warned against and now find ourselves in a quagmire. Redemption may be at hand, or not. The only paper that has intrinsic value is the Constitution. The good faith and credit of the United States is the stake and many States realize this. Theirs is not a call for Constitutional reform but one of compliance. To not tax is huge because it encourages a reformation.
We’re probably one crisis away from an unconstitutional ban on the possession or use of metal….aka FDR.
If anyone thinks the Banksters went to all that trouble back in the 30’s to separate the idea that gold and silver are true, Constitutional money (Congress has the power to COIN, not print) and substitute the notion that folding paper is money, only to give it up now, they flat haven’t a clue.
You won’t find one person in a thousand today that has any idea that folding stuff (or increasing digital stuff) is NOT MONEY….meaning the propaganda campaign of the banksters was a near complete success.
These bastards are NOT gonna simply roll over and play nice. Their entire base of power depends on keeping the con going.
State nullification of federal “laws” (which are actually only treaties between the several United States which any of those states can nullify by it’s sovereignty) is the very good answer to all of the problems created by the rogue “federal” (illegally imperial) government.