Idaho Ends income Tax on Precious Metals, Arizona is Up Next

Market Slant ^ | 14 May 2017

[Lorianne]

In a first and significant step towards the remonetization of Gold and Silver, Idaho voted tonight to remove income tax on precious metals. This is the first step in what will likely be a cascade of other states following suit.

Last week we discussed here the Arizona Senate Finance and Rules Committees' calling out the Fed on Gold Taxation by considering legislation (HB 2014) officially defining gold, silver, and other precious metals as legal tender. The bill also exempts transactions in precious metals from state capital gains taxes, thus ensuring that people are not punished by the taxman for rejecting Federal Reserve notes in favor of gold or silver.

The main arguments in favor of removing taxation on Precious metals can be summarized as this: •taxation on any appreciation in Gold's value undermines its value as an inflationary hedge •If gold and silver are priced in USD, then their price changes are a reflection on the USD buying power, nothing more •You don't pay tax when the buying power of the USD increases when buying EU goods. So why should Gold be treated differently? •The removal of income tax and capital gains tax puts Precious Metals on a level playing field with FIAT currencies

[CottonBall]

Great! Just have to get the feds to go along with it…

On the other hand, if things haven’t changed in the last decade – purchases and sales of silver are not monitored.

[Arthur McGowan]

One day, we were on the gold standard. The following day, anyone who thought we should be on the gold standard was a kook. It’s amazing how leftist propaganda works.

[lonevoice]

ping

[Foundahardheadedwoman]

I read an article a couple days ago saying that a capital tax would be levied on Bitcoin. If they can get away with that they will do the same to PM’s. I look at PM’s as a way to preserve your capital and buying power not as a speculative play, to me it is insurance. If you are worried about monitoring by the Feds, just pay with cash or buy pre-ban gold coins.

[SeeSharp]

Much ado about nothing.

• This doesn't do anything about the Federal tax.
• The Constitution forbids states from coining money.
• Federal law forbids private entities minting coins intended to be used as money.
• No major foreign state is issuing gold or silver coin.

[SteveH]

Gold bug bump

Silver bug bump

[CottonBall]

I’m not worried about it, I have as much as I need or want. I was just warning others. It’s something you only find out about when it is too late.

I didn’t think it was the payment method that matter though, I think all the buyers and sellers of gold have to report it to the feds. But silver doesn’t have the same rules. Neither do antique coins made of gold, but those come at a premium anyway.

[CottonBall]

I forgot to add, I completely agree about the insurance versus investment. Anyone trying to make money off of precious metals the last decade would have to have a crystal ball as to the timing. And therefore would likely get it wrong.

[matthew fuller]

Just checking- you don’t consider Canada a major foreign state?

[husky ed]

Washington State doesn't have a tax on precious metals.

Ed

[SeeSharp]

Just checking- you don’t consider Canada a major foreign state?

No. And even if they were, Canada couldn't possible resist the US government when it starts to feel threatened by a competing currency.

[MSF BU]

Am I missing something? I was not aware that sales of gold or silver are being traced. The dealers I do business with certainly are not doing that.