Senate Bill No. 99 has been introduced by State Senators Greg Walker and Jim Banks to free US-issued gold and silver coins from sales, use, and capital gains taxes.
SB-99 will add a new Chapter to the Indiana Code effectively making all taxes on gold and silver coins and transactions a thing of the past. From the bill’s synopsis:
Specifies that gold and silver coins issued by the United States government are legal tender in Indiana. Provides that a person may not compel another person to tender or accept gold or silver coins that are issued by the United States government, except as agreed upon by contract. Provides that the sale or other exchange of gold or silver coins issued by the United States government is exempt from state gross retail tax and use tax. Specifies that capital gains incurred on a sale or exchange of gold or silver coins issued by the United States government are not included in adjusted gross income for purposes of the state adjusted gross income tax.
On Monday, January 7 it will be read and referred to Committee on Tax and Fiscal Policy where co-author Sen. Walker sits. Should it pass on to the rest of the legislature then on to the governor’s desk and signed, the bill would become law by July 1 and the income tax aspects would be in effect January 1, 2014.
The fiscal impact report estimates that 2% of the US Mint’s gold and silver coins are in Indiana, calculating a $9.4 million loss in state revenue from retail and capital gains taxes. If accurate, that is a nice takeaway for Indianans who choose to transact with what the US Constitution lays out as legal tender under Article I, Section 10 – which reads “No State Shall…make any Thing but gold and silver Coin a Tender in Payment of Debts”
Dr. William Greene, in a paper for the Austrian Scholars Conference, explained how state legal tender laws can be an effective method to ending the fed from the bottom up. In essence, pulling the rug out from under their monopoly control of money:
“Over time, as residents of the State use both Federal Reserve Notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve Notes do will lead to a “reverse Gresham’s Law” effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve Notes). As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the State’s treasury, an influx of banking business from outside of the State – as people in other States carry out their desire to bank with sound money – and an eventual outcry against the use of Federal Reserve Notes for any transactions.”
Utah passed a similar bill, HB-317, in 2011 legalizing Constitutional tender, gold and silver coins issued by the federal government.
ACTION ITEMS
If you live in Indiana, contact your state legislator. Let him or her know of your support for SB-99 and that you expect him/her to become a co-sponsor. Click here for contact information.
If you live outside of Indiana, still contact your state legislator. Inform him or her that you hope similar legislation will be introduced in your state. Visit this link for model Constitutional Tender legislation that can be introduced today:
http://tenthamendmentcenter.com/legislation/constitutional-tender/
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Such a great information about gold and silver legal tenders. It is very informative post for me……
Great article on the current climate of our economy and the failing American Dollar.
This is absolutely a step in the right direction. This is a good move for Indiana and any other state that goes this route. Thanks to Nick for a good article. Nick…for future reference…we’re called Hoosiers, not Indianans. Still a good report though.
If we did not live in a tyranny, and were not run by the criminal Federal reserve, this might be a good idea. While competing currencies are a great idea, the problem is the government itself. And we will never be free or prosperous under this regime. So give it a go, but do not expect success. Not without revolution.
I see this phrase “issued by the United States government” as problematic. Why not allow all bullion to be accepted?