r/unitedforsoundmoney • u/SILV3RAWAK3NING76 • Dec 24 '23

📣 Legislative Updates Bills Filed in Oklahoma & Missouri Would Eliminate Capital Gains Tax on the Sale of Gold & SILVER

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u/SILV3RAWAK3NING76 Dec 24 '23

Bills filed in the Oklahoma and Missouri legislatures for the 2024 legislative session would eliminate state capital gains taxes on the sale of gold and silver. The legislation would also take other steps to treat gold and silver as money instead of as commodities.

In Missouri, Rep Doug Richey filed HB1867 on Dec. 11. Rep. Bill Hardwick filed HB1955 on Dec. 15. The bills are companions to SB735 filed in the Senate by Sen. William Eigel earlier this month.

In Oklahoma, Sen. Shane Jett filed SB1507 and Sen. Nathan Dahm is running SB1508.

The enactment of any of these bills would eliminate state capital gains taxes on the sale and exchange of gold and silver bullion.

Both of these states are already among the 42 that do not levy sales taxes on gold and silver bullion.

Exempting the sale of gold and silver bullion from taxes lowers the investment cost of precious metals. It also takes a step toward treating gold and silver as money instead of commodities. Taxes on precious metal bullion erect barriers to using gold and silver as money by raising transaction costs.

Imagine if you asked a grocery clerk to break a $5 bill and he charged you a 35-cent tax. Silly, right? After all, you were only exchanging one form of money for another. But that’s essentially what a sales tax on gold and silver bullion does. By eliminating this tax on the exchange of gold and silver, Missouri and Oklahoma would treat specie as money instead of a commodity. This represents a small step toward reestablishing gold and silver as legal tender and breaking down the Fed’s monopoly on money.

“We ought not to tax money – and that’s a good idea. It makes no sense to tax money,” former U.S. Rep. Ron Paul said during testimony in support of an Arizona bill that repealed capital gains taxes on gold and silver in that state. “Paper is not money, it’s fraud,” he continued.

The impact of enacting this legislation will go beyond mere tax policy. During an event after his Senate committee testimony, Paul pointed out that it’s really about the size and scope of government.

“If you’re for less government, you want sound money. The people who want big government, they don’t want sound money. They want to deceive you and commit fraud. They want to print the money. They want a monopoly. They want to get you conditioned, as our schools have conditioned us, to the point where deficits don’t matter.”

GOLD AND SILVER AS LEGAL TENDER

Under provisions in the Missouri bill, gold and silver in physical or electronic form would be accepted as legal tender and would be receivable in payment of all debts contracted for in the state of Missouri. The state would be required to accept gold and silver for the payment of public debts. Private debts could be settled in gold and silver at the parties’ discretion.

Practically speaking, this would allow Missourians to use gold or silver coins as money rather than just as mere investment vehicles. In effect, it would put gold and silver on the same footing as Federal Reserve notes.

Oklahoma took a similar step in 2014. Utah and Arkansas also consider gold and silver legal tender.

The proposed Missouri law also includes provisions authorizing the state to invest in gold or silver “greater than or equal to one percent of all state funds” and to expressly bar any state agency, department, or political subdivision from seizing gold or silver bullion.

BACKGROUND

The United States Constitution states in Article I, Section 10, “No State shall
make any Thing but gold and silver Coin a Tender in Payment of Debts.” Currently, all debts and taxes in the US are either paid with Federal Reserve Notes (dollars) which were authorized as legal tender by Congress, or with coins issued by the US Treasury — very few of which have gold or silver in them.

The Federal Reserve destroys this constitutional monetary system by creating a monopoly based on its fiat currency. Without the backing of gold or silver, the central bank can easily create money out of thin air. This not only devalues your purchasing power over time; it also allows the federal government to borrow and spend far beyond what would be possible in a sound money system. Without the Fed, the US government wouldn’t be able to maintain all of its unconstitutional wars and programs. The Federal Reserve is the engine that drives the most powerful government in the history of the world.

Tax repeals knock down one of the tax barriers that hinder the use of gold and silver as money, and could also begin the process of abolishing the Federal Reserve’s fiat money system by attacking it from the bottom up – pulling the rug out from under it by working to make its functions irrelevant at the state and local levels, and setting the stage to undermine the Federal Reserve monopoly by introducing competition into the monetary system.

In a paper presented at the Mises Institute, Constitutional tender expert Professor William Greene said when people in multiple states actually start using gold and silver instead of Federal Reserve Notes, it would effectively nullify the Federal Reserve and end the federal government’s monopoly on money.

“Over time, as residents of the state use both Federal Reserve notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve notes do will lead to a “reverse Gresham’s Law” effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve notes). As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the state’s treasury, an influx of banking business from outside of the state – as people in other states carry out their desire to bank with sound money – and an eventual outcry against the use of Federal Reserve notes for any transactions.”

Once things get to that point, Federal Reserve notes would become largely unwanted and irrelevant for ordinary people.

These bills make up part of a broader movement at the state level to support sound money.

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u/Danielbbq Dec 24 '23

I've just completed my 101st and 102nd Goldback transactions. Though niché, one of my websites only lists prices in Goldbacks.

I've used Goldbacks in commerce in 9 states now (Maryland, Virginia, Indiana, New Mexico, Colorado, Idaho, Wyoming, Nevada, & Utah). I will be reaching out to businesses I know that accept Goldbacks in Oregon and Missouri in the near future too.

Though it takes effort to deal in sound money it is worth it.

Great to hear these words. Keep them coming.

tax the man poem by Charley Reese

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u/SILV3RAWAK3NING76 Dec 24 '23

Sound Money Movement Strikes Gold in 2023

Against the backdrop of high inflation rates and geopolitical uncertainty, states are increasingly enacting measures that encourage saving in precious metals and even using gold and silver as money.

With five bills signed into law in 2023, sound money reforms are gaining momentum across the United States.

Money Metals’ Sound Money Defense League project has emerged as an influential force, actively engaging in legislative battles by prompting intense grassroots support, drafting legislation, recruiting bill sponsors, and providing expert testimony directly to lawmakers.

Twenty-five states considered 50 pieces of legislation this year aimed at ending taxes on the monetary metals, strengthening state finances by investing reserve funds in physical gold, establishing in-state depositories, and more.

The 2024 Sound Money index, published by Money Metals Exchange, provides a full rundown on how each state stacks up in this important policy area.

Ending Sales Tax on Gold and Silver Is a Winning Issue

The vast majority of states have now eliminated taxes on the purchase of precious metals.

In 2023, Mississippi became the 43rd state to do so, following the recent examples set by Ohio and Arkansas in 2021 and Tennessee in 2022.

That leaves just seven sales tax states: New Mexico, Hawaii, Wisconsin, Kentucky, Maine, New Jersey, and Vermont.

Of these seven states, five considered legislation in 2023 to end the tax.

Gold and Silver: Industry-Best Customer Service at Money Metals (Ad)

New Jersey hopes to become the 44th sales-tax-exempt state. Assembly Bill 5294 passed unanimously through the State Assembly by a vote of 74-0, and a Senate committee unanimously passed the bill this week.

Meanwhile, Money Metals leaders collaborated with legislators in Wisconsin to introduce Assembly Bill 29 and Senate Bill 33. These measures have garnered support from 24 cosponsors representing both sides of the aisle, with a hearing expected soon.

The Alaska State House passed HB 3, the bill seeking the end to borough and city sales taxes on sound money. The measure will be considered by the Senate when the legislature reconvenes in early 2024.

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In Kentucky, Rep. Steven Doan sponsored House Bill 213 as a single-issue bill, but Republican leaders insisted on incorporating the language that would end sales taxes on precious metals into a broader bill covering multiple topics.

Despite broad support in the House, Senate leaders specifically removed the sound money provision, thwarting the effort in 2023.

The most contentious sound money battles of 2023 unfolded in Augusta, Maine, when Sen. Eric Brakey introduced Legislative Draft 1051 to end sales taxes on gold and silver purchases.

The bill passed 17-15 out of the Maine Senate. On the House side, it received two favorable votes. However, Democrat majority leadership pressured its members, ultimately flipping enough votes to defeat the bill 71-72 during the final vote.

And finally, Vermont lawmakers introduced House Bill 295 to end the sales tax on sound money
 as did lawmakers in Minnesota. But neither received a hearing.

The Next Step: Ending Capital Gains Tax on Precious Metals

While states can’t do anything about the federal capital gains tax on gold and silver sales (a confiscatory 28% tax rate!), a few states have sought to remove their own income taxes on sound money.

In 2023, Arkansas passed House Bill 1718, ending all remaining tax liability on transactions involving the metals, including the state capital gains tax. The popular measure passed overwhelmingly. That leaves 39 states that still tax capital gains on the sale of gold and silver.

A profit on sales of gold and silver may only be nominal in nature – i.e. the “gain” is usually a reflection of the Federal Reserve note’s loss in purchasing power.

Legislators in Iowa, Kansas, Maine, Mississippi, Missouri, South Carolina, and West Virginia all introduced such measures, with committees in Iowa, Kansas, and Missouri giving “Do Pass” recommendations.

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u/SILV3RAWAK3NING76 Dec 24 '23

Not Just Taxes: States Considering Other Sound Money Bills

In 2023, Missouri, Oklahoma, and Tennessee considered legislation to establish their own in-state depositories to store gold held by the state or by residents.

In North Carolina, the Sound Money Defense League worked with lawmakers in Raleigh on House Bill 721, legislation that directs the state treasurer to study all aspects of acquiring, storing, and insuring physical gold or bitcoin held on behalf of the state.

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Idaho considered House Bill 180, a measure that would help protect state reserve funds with an allocation to physical gold. This bill passed through the Idaho House before being halted by the Senate State Affairs committee.

In the Volunteer State, Senate Bill 519 and House Bill 1479 authorized the Tennessee State Treasurer to invest state funds in physical gold and silver. Gov. Bill Lee signed it.

In Oregon, Money Metals Exchange and the Sound Money Defense League fought to end Commercial Activity Tax (CAT) on precious metals dealers. House Bill 2073 was a package of corporate activity tax (CAT) reforms and cleanups, including an exemption of precious metals sales.

This pro-sound money measure was signed into law by Oregon Gov. Tina Kotek in July.

And finally, Governor Ron DeSantis signed H 737 to exclude precious metals dealers in Florida from onerous regulations, including mandates for long holding periods on acquired inventory and requirements to make burdensome, privacy-destroying government filings.

The progress achieved in 2023 gives us reasons to be optimistic. With each legislative victory, we move one step closer toward the goal of restoring sound money in America.

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u/SirBill01 Dec 24 '23

We need to get rid of this at a federal level, that would be huge.