Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Bill Introduced in Congress to Eliminate Capital Gain Taxes on the Sale of Gold and Silver Bullion

  by    0   2

A bill introduced in the US House would eliminate capital gains taxes on gold and silver bullion.

Rep. Alex Mooney (R-W.Va.) introduced HR6790 on Sept. 12. Titled the Monetary Metals Tax Neutrality Act of 2018, the legislation would amend the IRS code to exempt the sale of “refined gold or silver bullion, coins, bars, rounds, or ingots which are valued primarily based on their metal content and not their form,” from capital gains taxes.

It would also exempt any gold, silver, platinum, or palladium coins minted and issued by the US Treasury.

The bill would effectively be revenue neutral. While it would end capital gains taxes on gold and silver specie, investors would no longer be able to claim losses on their taxes either.

The IRS currently treats gold and silver bullion as “collectible” – think artwork or sports memorabilia. Any “gain” on the sale of gold and silver bullion is subject to capital gains taxes. Mooney said gold and silver are money and shouldn’t be taxed.

 If they’re indeed US money, it seems there should be no taxes on them at all. So, why are we taxing these coins as collectibles?”

Mooney is right. Imagine if you asked a grocery clerk to break a $5 bill and he charged you a 35 cent tax. Silly, right? After all, you were only exchanging one form of money for another. But that’s essentially what taxes on gold and silver bullion do. By removing the taxes on the exchange of gold and silver, the US tax code would treat specie as money instead of a commodity.

Passage of HR6790 would take down a barrier to investing and gold and silver. Individuals buying gold or silver bullion, or utilizing gold and silver in a transaction, would no longer be subject to state taxes on the exchange. This could encourage and facilitate the use of gold and silver in everyday transactions.

Introduction of HR6790 is part of a broader movement that started at the state level. Several states including Arizona, Wyoming, North Carolina and Alabama have recently repealed taxes on gold and silver.

Ron Paul has supported this movement. He said sound money is key to shrinking the size and scope of government.

“If you want to have liberty and limit the size of government, you have to have honest money,” Paul said during testimony for the Arizona bill. During an event after his Senate committee testimony in Arizona, Ron Paul pointed out that it’s really about the size and scope of government.

“If you’re for less government, you want sound money. The people who want big government, they don’t want sound money. They want to deceive you and commit fraud. They want to print the money. They want a monopoly. They want to get you conditioned, as our schools have conditioned us, to the point where deficits don’t matter.”

TaxFreeGold.Banner.1000x285

Get Peter Schiff’s latest gold market analysis – click here for a free subscription to his exclusive monthly Gold Videocast.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Subprime Credit Card Charge-Offs Remain at Great Recession-Era Levels Despite “Booming” Economy

Last week we highlighted the rising level of auto loan delinquencies and the growing number of student loan borrowers who can’t make their payments. This week, we got some more bad news for lenders. Subprime credit card charge-offs remain at levels reminiscent of the Great Recession. In the first quarter of this year, credit card […]

READ MORE →

Texas Takes Another Step to Facilitate the Use of Its Gold Bullion Depository

Texas continues to take steps to make the state more friendly to gold and silver. Earlier this week, the Texas Senate gave final approval to a pair of bills that that would exempt precious metals stored in the Texas Bullion Depository from certain taxes. By repealing taxes on gold and silver, the state will treat […]

READ MORE →

Nope! Nothing to See Here!

Don’t worry. Nothing to see here! That was pretty much the message Federal Reserve Chairman Jerome Powell delivered in a speech he gave at the Atlanta Federal Reserve bank conference on May 20. Powell talked about the high levels of corporate debt. In fact, corporate leverage is at a record level of around 35% of […]

READ MORE →

China Sells Most US Treasuries in 2-1/2 Years Amid Threats of ‘Nuclear Option’

China sold off the highest level of US Treasurys in nearly 2-1/2 years in March. Meanwhile, there are renewed fears the Chinese could implement its “nuclear options” and sell off even more US debt in retaliation for US trade war tariffs. China sold $20.45 billion in Treasuries in March. That was the biggest US debt […]

READ MORE →

Auto Loan Delinquencies Approaching Great Recession Peak

a check engine light is onAuto loan delinquencies have surged to the highest level since 2011 and are approaching levels seen at their peak during the Great Recession. The percentage of outstanding auto loans in serious delinquency (90 days or more past due) jumped to 4.69% in the first quarter of 2019, according to the latest data from the New […]

READ MORE →

Comments are closed.

Call Now