Three Republican senators unveiled legislation that would prevent the Federal government from taxing gold and silver coins that had been declared legal tender. The Sound Money Promotion Act follows Utah’s as recognizing such coins as legal tender, thus limiting the government’s interaction with it.
Most importantly from the Sound Money Promotion Act would be the exemption of these recognized coins from state capital gains taxes. The senate bill states, “gold and silver coins declared legal tender by the federal government or any state government shall not be subject to taxation.”
“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. In order to rebuild strength and confidence in our economy, we need both the fiscal discipline to cut wasteful spending and the monetary discipline to restrain further destructive monetizing of our debt. This legislation would encourage wider adoption of sound money measures, and that’s a step in the right direction,” Senator DeMint said.
As the legislation hits the Federal level, 12 other states have followed Utah’s lead and passed similar measures. With the dollar hitting a low level, this bill if signed into law would make gold transactions easier if it were to ever replace paper currency. Without the law, each transaction would be subject to a capital gains tax, since the coins value would be subject to international trade, rather than a face value.