In a move that could reshape the perception and use of gold and silver, bills have been introduced in both the Oklahoma and Missouri legislatures for the 2024 legislative session. The proposed legislation aims to eliminate state capital gains taxes on the sale of gold and silver while taking steps to recognize these precious metals as money rather than commodities.
Missouri’s legislative effort includes HB1867 filed by Rep. Doug Richey on December 11 and HB1955 filed by Rep. Bill Hardwick on December 15. These bills align with SB735 introduced by Sen. William Eigel in the Senate earlier in the month.
In Oklahoma, Sen. Shane Jett filed SB1507, and Sen. Nathan Dahm introduced SB1508.
If any of these bills are enacted, it would mean the elimination of state capital gains taxes on the sale and exchange of gold and silver bullion. Notably, both Missouri and Oklahoma already belong to the 42 states that do not impose sales taxes on gold and silver bullion.
The significance of exempting gold and silver bullion from taxes extends beyond cost reduction for investors. It represents a step toward acknowledging gold and silver as forms of money rather than mere commodities. Taxing precious metal bullion creates barriers to using them as money by increasing transaction costs, similar to imposing a tax when exchanging one form of currency for another.
Former U.S. Rep. Ron Paul emphasized the absurdity of taxing money, stating, “We ought not to tax money – and that’s a good idea. It makes no sense to tax money.” He further highlighted the importance of sound money for those advocating for smaller government, as opposed to the desire for big government, which tends to favor fiat currency over gold and silver.
Under the proposed Missouri legislation, gold and silver, whether in physical or electronic form, would be recognized as legal tender. Individuals would be allowed to use these precious metals for settling both public and private debts, providing Missourians with the option to utilize gold or silver coins as everyday currency.
Oklahoma had already taken a similar step in 2014, and other states like Utah and Arkansas have also considered recognizing gold and silver as legal tender.
Beyond the impact on tax policy, these legislative initiatives challenge the monopoly of the Federal Reserve by introducing competition into the monetary system at the state and local levels. By reducing tax barriers and promoting the use of gold and silver as money, these bills aim to make the functions of the Federal Reserve less relevant and pave the way for a shift in the monetary landscape. The ultimate goal is to create a scenario where gold and silver, as sound money, could potentially replace Federal Reserve notes, thereby nullifying the central bank’s influence.
