Sound Money Is Rising at the State Level
Inflation is the most pernicious of taxes levied by the US government. Officials systematically devalue the Federal Reserve’s dollar, and 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 real.
Meanwhile, bills calling for the elimination of capital gains taxes on money, i.e. precious metals, have recently been introduced in both Idaho and Arizona.
Alabama, Tennessee, Virginia and Maine are working to eliminate sales taxes on gold and silver bullion. 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 US 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. 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.
State depositories will also allow citizens to more easily use gold and silver in transactions. Depositors would be able to make payments to one another by 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 growing. The deficits, the mountains of unpayable debt and the metastasizing state and federal governments were all made possible using the black magic of fiat currency.
Markets assume all obligations will be met when a government can print what is needed. It is simple for politicians to promise the moon when they do not need to raise taxes to fund programs; they simply borrow or print currency.
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, the US may be close to a return to honest money nationwide.