Idaho House Votes Overwhelmingly To End Income Taxation Of Precious Metals

Tyler Durden's picture

Authored by Stefan Gleason via Money Metals Exchange,

By an overwhelming 56-13 margin, the Idaho House of Representatives today voted to end all Idaho taxation on precious metals, e.g. gold and silver coins and bars.

Bill sponsor Representative Mike Moyle (R) and the entire Republican caucus voted for the measure. If the Republican-controlled Idaho Senate follows suit and Governor Butch Otter (R) signs the bill, Idaho citizens will better be able to use gold and silver as a form of savings which protects against ongoing devaluation of America’s currency.

Backed by the Sound Money Defense League, Idaho Freedom Foundation, Money Metals Exchange, and grassroots activists, HB 206 expands Idaho’s existing sales tax exemption to end Idaho income taxation of sales of “precious metals bullion” and “monetized bullion.”

“According to the U.S. Constitution, Article I, Section 10, there is only one thing that a state can declare as currency if they think that our federal currency is going out of whack and some might argue that they think our federal currency is going out of whack already,” said Representative Ron Nate (R) from the House floor.

 

“If we are not going to allow people to declare capital losses on their Federal Reserve Notes or their dollar holdings, it would also be unfair to tax people for their gold and silver holdings. Gold and silver is an alternative to holding Federal Reserve Notes and it is the ONLY alternative that the U.S. Constitution says that the state can allow as another currency. It’s unfair to tax it just as [it’s unfair] to tax losses on Federal Reserve Notes” continued Rep. Nate.

 

Under current law, the taxpayer who sells their precious metals may end up with a capital “gain” in terms of Federal Reserve Notes – commonly referred to as “dollars.” This capital ‘gain’ is not necessarily a real gain. It’s often a nominal gain that simply results from the inflation created by the Federal Reserve and the attendant decline in the dollar’s purchasing power. Yet this nominal gain is taxed at the federal level – and taxed again by Idaho.

Under HB 206, precious metals gains and losses reported on a taxpayer’s federal income tax return would be removed from the calculation of the taxpayer’s Idaho taxable income.

“Policies that discourage precious metals ownership reduce the likelihood that Gem State citizens will take prudent steps to insulate themselves from the inflation and financial turmoil caused by the Federal Reserve System,” said Stefan Gleason, director of the Sound Money Defense League. “Precious metals bullion is already exempt from Idaho’s sales tax. HB 206 removes the final disincentive in Idaho tax law that stands against ownership of the monetary metals.”

States are taking actions to defend sound money because the monetary system in America, largely run by the Federal Reserve, has dramatically undermined the purchasing power of the currency to the detriment of savers and wage-earners in particular.

Legislators in Utah and Oklahoma have already enacted similar income tax measures and Arizona may enact its own version of HB206 in the new few weeks. Other states such as Tennessee, Maine, and Alabama are working to remove precious metals from the sales tax – just like Idaho and over 20 states have already done.

For more information on House Bill 206, please follow this link.

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nuubee's picture

That Freight-Train-like sound you hear is all ZH'ers suddenly moving to Idaho

chubbar's picture

If you live in one of the income tax free states, you already have this advantage. Unfortunately, it's the federal tax rate that makes the big difference in how much capital gains from PM's you get to keep. If we could get that law changed THEN you would have something to really cheer.

Ignatius's picture

The trend is your friend.

NidStyles's picture

I'm confused, why would you pay income taxes?

 

Trading bullion for cash is an like exchange, there are no income taxes involved. There are only taxes when a bank is involved, as it's not an exchange of like items, but rather an exchange of credit for legal tender then.

 

Seriously, am I the only one that has actually read the law regarding echanges of like goods? The Consitution makes it very clear that all gold and silver are legal tender, not just coined gold and silver...

stormcrow's picture

You would pay so that the Federal Mafia doesn't kick in your door and haul you off to jail for being a "tax protester"

N0TME's picture

A fair amount of good looking women in Twin Falls too.

One early example: https://www.youtube.com/watch?v=oSErjprCDaY

flicker life's picture
flicker life (not verified) N0TME Mar 15, 2017 6:55 AM

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://bit.ly/2jdTzrM

Privyet_Jet's picture

sheeeeit 

 

don't make em like those anymore

38BWD22's picture

 

 

Correct.  Many states have no sales tax on PM purchases and sales.

Also correct on the terrible "Collectibles" CapGain tax on PMs.  Solution to that?  Never sell...

SumTing Wong's picture

I've spent mine a couple of times. Find someone with whatever you need...for me it was a trailer for my truck. We had fun writing the bill of sale for $13. Sure, it was 13 silver dollars, but he got a break on the tax by us doing this too...if he ever reported it.

ultraticum's picture

Maybe Trump can replace Yellen or Mnuchin with Ron Nate!

He forgot more about "protecting" the people's purchasing power than they will ever know.

Agstacker's picture

Check your city tax rates, Colorado has no tax on purchases of PM's however if you buy them in Denver or Ft. Collins you're paying a steep city tax.

Lets Buy The Dip's picture

good points, but over time, metals have always gone up. 

The thing that will mess GOLD up is the FED, who will raise interest rates tomorrow, rates up market down, it seems. 

THis is shocking chart to see how actually overbought the stockmarket is right now. ==> http://www.bit.ly/2nhCXoG

TahoeBilly2012's picture

Shhh don't tell everyone about Idaho.

gaoptimize's picture

Strategic Relocation to the American Redoubt is looking better all the time.

Jimmy Jimmereeno's picture

Either you are a troll or you do not understand the basics about gold.  The USD ($) goes up and down in relation to an ounce of gold.  Gold does not go up and down in relation to a fiat amount of dollar bills.  The FED cannot do squat about the deteriorating $/gold ratio that has gone from 1:1 in 1913 to 97:1 presently.

AVmaster's picture

Oh oh... Sounds like the idao state gov budget is about to "accidentally crash" for some "unknown" reason ....

J bones's picture

No need to move. Its Coming!

Jimmy Jimmereeno's picture

Good post.  I have considered a move to Utah and recently to Arizona, after Arizona's new law but neither alternative affords a resolution.  The Idaho law is not significantly different from either Utah or Arizona but the takeaway is, as someone posted above, the oppressive Federal law that classifies bullion as a physical asset, no different from most forms of property. 

TeethVillage88s's picture

The 2016 Giant Sucking Sounds is Middle Class Wealth going into Health Care Costs.

Caterpillar tried to do a Financial Inversion, Tax Inversion to move more jobs overseas. But most Machine Shop/factory and service jobs are already gone.

Sorry off topic.

- State Tax
- Property Tax
- Sales Taxes city/county/state
- Gas/Diesel Tax
- Emergency Services Fees/Tax
- Death Tax

There are too many taxes to jump through bird cage for a Capital Gain tax/purchase tax.

idahobandito's picture

And almost all would be welcome here...excluding the green face guy, and a few other hillary suckasses.

Takeaction2's picture
Takeaction2 (not verified) nuubee Mar 15, 2017 1:42 AM

HELL YEAH...I am right here in Oregon...guess where you sell?  Load up the raft...

pc_babe's picture

What was the reason for the 13 nay's?

N. B. Forrest's picture

There are still Democrats in that state.

kahplunk's picture

Bring out the flame thrower then

Mazzy's picture

Two areas consistantly vote liberal:  Moscow (University town) in Latah county, and the resort area around Sun Valley ski resort (similar to how Wyoming's Teton county is the wealthiest per capita in the country) in the center of the state.

Boise is changing though: lots of Caliturds floating in.

GoonerDog's picture

Trump really should build the wall around Idaho. To keep out to Cal-turds out. Establish checkpoints. No IDs needed to get in. Libtards are easy to spot coming from miles away. Deport them.

in4mayshun's picture

The libtards should be easy to spot- they'll be driving a Prius, Subaru or other hybrid vehicle. Conservatives will be in 4x4's, diesels, SUV's etc...

hxc's picture

Pissed-off San Diegan far-right libertarian stoner driving a gorgeous well-maintained porsche 986. Hopefully yall don't hate all Californians because we are your greatest allies lol. Got holes in my ears and work in manufacturing. Keep an open mind

GoonerDog's picture

Great, I was going to buy a Subaru when I move to Colorado. I do not want to be mistaken for a libtard! Ok, I need a recommendation for  great non-Subaru sedan or smaller SUV. No RAV-4 recommendations. Boring looks, though I hear they are great machines. Let's go for a diesel now that I think of it.

William Dorritt's picture

Before it turns into Wash, OR, or CO....

 

ID should look at the program they put in each place they invade, and block it with their constitution now.

Eliminate Income Tax, and Property Tax and fund the govt from mining royalties and sales taxes, and yes charges for Govt Services.

Rufus Temblor's picture

Transplanted liberals from the Left coast, I would guess.  I hear they've already infected Alaska.

MegaOlmecanManiac's picture

I think you mean Anchorage.

Not the spit swapping lezbrah's sisters in Homer; and sea-kayaking Forest Circus herbalists in Seward, Juneau and Ketchikan. Okay, maybe you're right...

But no one can deny the jacked up, 4wd LTD's on tracks in Wasillillbilly. And the purity of Sweet Palmer Pussy.

One of We's picture

Nothing revs me like a trashy gal in a bikini mobbing it up at Jim Creek....

Lost in translation's picture

AZ, TX, and I think UT doing the same thing, too.

ebworthen's picture

Sorry Feds, tragic boating accident.

booboo's picture

tragic indeed, I weep for your loss, I had to join a support group myself, we meet in the Caymans once a year.

AR15AU's picture

Dominoes, bitchez

Argos's picture

Current AZ Republican gov has already voted this once.

buckstopshere's picture

Another nail in the coffin for the Federal Reserve Note.

William Dorritt's picture

Perhaps a brad......but at least it's something

lasvegaspersona's picture

Gold's commodity status is silly. The idea that a futures market is needed for gold is sillier. There is always gold available in endless quantities even if no new gold is ever mined. All that needs to settled is the price. Other commodities are used up. Gold's function is to be buried and held 'til needed by someone else who wants to bury it until they need it.

Bay of Pigs's picture

Dude, youve been here 6 years and you haven't learned a thing about silver and gold?

Come on...put a sarc tag at least.

Omni Consumer Product's picture

LVP is a proponent of the FOFOA theory of gold, and as a corollary, of freegold.

I don't agree with it, but LVP's definitely been consistent in his position on this topic over the years.

Jimmy Jimmereeno's picture

The only reason that a futures market for gold was established is because gold ownership - as a commodity and not money - was legalized in the 1970s (reversing FDR's unconstitutional 1933 action).  If gold were legally money, i.e. if one could freely exchange paper currency for bullion or vice versa, then gold futures would disappear from the economic scene.

cowdiddly's picture

Sure has been a lot of Barbarianism lately. Must be somptin in the wind.

Freddie's picture

Only bad thing about Idaho is too many Mormons.  They make great Deep State Stooges and friends of neoCon Bushes.  Romney, Hinckley, Evan MCMullen and other CIA/NSA types.  They make great little storm troopers because they follow orders well.   Never do business with them or another group who they are tight with.