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

Gold and Silver Sales Tax Being Challenged in Maine

  by    0   0

State Senator from Maine Eric Brakey recently introduced Senate Bill 664, which attempts to provide sales tax exemption for precious metals purchases of “gold and silver coins and bullion.” Passing Brakey’s bill would align Maine with many other states that think taxing precious metals is bad business and discourages consumers from protecting their wealth.

The current attitudes towards taxing precious metals comes from whether they’re perceived as a regular consumer good like Starbucks coffee, or a type of investment or currency.

Exempting gold and silver from sales or consumption taxes is perfectly logical, given that precious metals aren’t typically “consumed” like other products. Instead, they’re used to move wealth from a volatile, government-backed fiat currency into real money.

Bill 664 also indirectly addresses another issue: free markets. Sales taxes on precious metals don’t discourage consumers from using such safe haven investments to protect from the inflationary effects imposed by central banking policies. Too often, consumers are forced to use the government’s devalued IOUs to conduct business when there are safer more dependable options available.

It’s like a carpenter being given a rubber hammer by their boss instead of the option to bring their own metal one from home. Why should US citizens be beholden to government issued currencies backed by nothing, when there are better alternatives?

Whether or not a buyer pays sales tax on precious metals purchases depends on which state he or she lives in. While some states do charge a sales tax, others do not. Still, other states impose a tax only when the value exceeds a specific amount. Because tax codes and laws change all the time, it’s important for investors to check with a CPA about their state’s specific tax laws.

Below is a map of states that do collect sales taxes in red and those that don’t in gray:

Map of US that shows states with tax on metals

If Brakey’s bill becomes law, it will bring Maine citizens one-step closer to being freed from the undue burden of over-taxation and regulation that continues to plague the country at large.

Start protecting your wealth today from the tyranny of central banking and the effects of low interest rates on a devalued fiat currency untether to real money. Purchase gold and silver coins and bullion.

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

The Healing Power of Gold and Silver

Stethoscope sitting on top of a pile of gold bullionThere is healing power in gold and silver. Both precious metals serve as an investment as well as money. Gold and silver also have technological applications. We recently reported that gold is the new green with a growing number of environmental applications. Today, we focus on some of the amazing developments using gold and silver in healthcare applications. Related

READ MORE →

Gold Demand Expected to Increase with Indian Holiday

Indian women in costumes celebratingAn important Hindu holiday will take place on Friday, and Indians are expected to celebrate by rushing to buy gold. Akshay Tritiya ranks as one of the four most important days for Hindus. The word Akshay roughly translates to “the never diminishing”. The day is believed to bring good luck and success. It is also considered […]

READ MORE →

American Middle Class Is Caught in a Vice

100 dollar bill being squeezed in a viceToday the American middle class is caught in a vice: squeezed by debt and facing a devalued currency. Add to that an increasing cost of living, stagnant wages, taxes, and government over-regulation and it’s easy to see why the “bedrock” of the US economy is struggling to keep up. A Pew Research report published in […]

READ MORE →

Student Loan Debt Now Big Problem for Baby Boomers

man signing paper work for a loanWhen we talk about the student loan crisis, we tend to focus on millennials. After all, they are the ones impacted most directly by the ever-increasing burden of student loan payments. Student loan debt is one of the biggest factors driving a growing trend of millennials struggling to transition into adulthood. But increasingly, student loan debt […]

READ MORE →

Investors Rushing for Golden Life Rafts

people laying in raftHedge funds are betting on gold, boosting gold futures and options to the highest level since last November, as investors scramble for golden life rafts. Gold has advanced by 11%  this year, and investors seem to think the gold bulls will continue to run, according to a Bloomberg report. In addition to betting up futures, […]

READ MORE →

Comments are closed.