While Congressman Ron Paul [R-TX] is running for President, he is also attempting to create new law. On February 13, 2008, Mr. Paul introduced a bill titled, the Tax-Free Gold Act of 2008.
Should the bill become law, it would eliminate taxes and fees on certain coins and bullion.
Although coin collectors and bullion investors would certainly relish the bill’s passage and subsequent signing into law, it would not be a good idea for anyone to hold their breadth on the matter. The odds of the bill moving forward would appear to be as likely as Mr. Paul’s current chances of becoming the Republican Presidential nominee.
Key bill elements and status: [H.R. 5427]
The proposed legislation, as outlined:
-
(a) In General- Notwithstanding any other provision of law–
-
(1) no tax may be imposed on (or with respect to the sale, exchange, or other disposition of) any coin, medal, token, or gold, silver, platinum, palladium, or rhodium bullion, whether issued by a State, the United States, a foreign government, or any other person, and
-
(2) no State may assess any tax or fee on any currency, or any other monetary instrument, which is used in the transaction of interstate commerce or commerce with a foreign country, and which is subject to the enjoyment of legal tender status under article I, section 10 of the United States Constitution.
-
(b) Effective Date- This section shall take effect on December 31, 2008, but shall not apply to taxes or fees imposed before such date.
The bill has no cosponsors and has been referred to the following committees:
As is the nature with many bills, there is no telling when or if it will ever see the light of day.
Tax Free for buying and selling coins is the first step to abolish taxes like income tax. Income Tax is illegal and most inefficent way to make revenue for government. In addition IRS is most corrupt admistration in the nation!
I like the concept, especially since I’m a new fan of the precious metals… especially in Eagle form. My question is this though – how much tax is there currently on these items? Generally they don’t seem to sell for a huge premium over the spot price of the metal, so would we really save much if this bill were to become law?
http://www.llamamoney.com/
In the short term this bill can work as a hedge against price inflation caused by monetary inflation. Cash can be put into precious metal and then taken out again as cash without a tax burden or record-keeping headache. Turnover in coin and metal will be higher.
This can also be the first step to other stabilization of the dollar, including a competition in currency. If coin or metal can be converted quickly, it is almost as good as money. More laws may be needed for it to be able to trade as though money.
I have always wondered why you could go to a coin shop, buy a legal tender coin or note, and have to pay taxes on that legal tender!
Doesn’t make sense that you have pay a tax when you use money to buy money. It is more an exchange, and should in no way be taxed.
Much as labor should not have a sales tax, and is not taxed in many locations.
The bullion part is similar, and is especially connected to US bullion coins, which have a legal tender value attached.
I hope they pass this.