A bill introduced in the Kansas House would recognize gold and silver specie as legal tender and repeal all taxes levied on it. The legislation would pave the way for Kansans to use gold and silver in everyday transactions, a foundational step for the people to undermine the Federal Reserve’s monopoly on money.
Three more states are moving toward repealing taxes on the sale of gold and silver bullion.
Last week, Alabama Gov. Kay Ivey signed a bill into law exempting the sale of gold and silver bullion from state sales and use tax. The repeal of the tax not only lowers the cost of investing in gold and silver, it will also open the door to using precious metals in everyday transactions, and it takes the first step toward breaking the Federal Reserve’s monopoly on money.
During its last session, the Kansas legislature voted to raise taxes. The national media and left-wing politicians immediately began finger-pointing, calling the state’s five-year tax cut experiment an epic failure.
In 2012, Kansas implemented an economic reform package that included a reduction of the top income tax rate from 6.45% to 4.9%. The plan eliminated income tax on some businesses altogether. At the time Gov. Brownback called the plan “a shot of adrenaline into the heart of the Kansas economy.”
It didn’t quite work out as planned. Government expenses are expected to outpace income by $1.1 billion through June 2019. The legislature reversed course.
So what happened? One obvious answer is that you can’t just cut taxes. Government needs to shrink proportionately. That didn’t happen. But as economist Kel Kelly points out in the following article originally published at the Mises Wire, there is more to the story. It wasn’t a failure. You just have to understand how to look at it.