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USA: No Taxes on Gold and Silver Collector Coins?

Started by Bimat, July 11, 2011, 03:56:42 PM

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Bimat

Senators Introduce Legislation To Remove Tax Burden On Gold And Silver Coins
July 11, 2011 by Marcy Bonebright

On June 28, Senators Jim DeMint (R-S.C.), Mike Lee (R-Utah) and Rand Paul (R-Ky.) introduced the Sound Money Promotion Act, which would allow legal tender gold and silver coins to be considered in the same manner as United States currency for taxation purposes. Thirteen states have recognized gold and silver coins as legal tender, but currently those coins are taxed as if they were not part of U.S. currency.

"Thanks to the government's reckless over-spending, continued bailouts, and the Federal Reserve's easy money policy, this year the purchasing power of the dollar hit an all-time low in the several decades since we went off the gold standard," DeMint said when introducing the bill to the Senate, according to a press release. "This legislation would encourage wider adoption of sound money measures, and that's a step in the right direction."

The State of Utah was the first to recognize gold and silver coins as legal tender; the legislation passed in May of this year. Since then, 12 other States have recognized the hard currency, including South Carolina.

"Good monetary policy is an important part of a healthy and prosperous economy," Lee reportedly said. "Since the Federal Reserve Act of 1913, the dollar has lost approximately 98 percent of its value. This bill is an important step towards a stable and sound currency whose value is protected from the Fed's printing press."

Source: Personal Liberty
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Figleaf

In reality, this has nothing to do with the hot hype the senator is spewing but with the cold fact that the US has a tax on investment income. If the tax were levied, the gold and silver coins the senator so loves would be useless as money, since they couldn't compete with cash, on which there is no such tax. Sir Humphrey Appleby would have spotted that one immediately :D

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.