Missouri and Oklahoma Introduce Bills to Eliminate Capital Gains Taxes on Gold and Silver
In a move that could have significant implications for the future of money in the United States, the Missouri and Oklahoma legislatures are considering bills that would eliminate state capital gains taxes on the sale of gold and silver. The legislation also aims to treat gold and silver as money rather than commodities, taking a step toward reestablishing precious metals as legal tender.
The bills, filed in the 2024 legislative sessions, include HB1867 and HB1955 in Missouri, as well as SB1507 and SB1508 in Oklahoma. If enacted, these bills would exempt the sale and exchange of gold and silver bullion from state capital gains taxes, furthering the trend of 42 states that do not levy sales taxes on precious metals.
By eliminating taxes on the exchange of gold and silver, these states aim to reduce investment costs associated with precious metals and to decrease transaction costs, thereby treating gold and silver as forms of money rather than commodities. Former U.S. Rep. Ron Paul emphasized the importance of sound money, stating that taxes on gold and silver are nonsensical as they impede the use of these metals as legitimate means of exchange.
Legal tender provisions in the Missouri bill would accept gold and silver as forms of payment for all debts contracted within the state, proposing that even public debts could be settled with precious metals. This initiative would allow Missourians to utilize gold or silver coins as money, placing these metals on par with Federal Reserve notes.
The United States Constitution explicitly mandates the use of gold and silver as legal tender, a principle that has been undermined by the Federal Reserve’s fiat currency system. By repealing taxes on gold and silver, these states seek to challenge the monopoly of the Federal Reserve by introducing competition into the monetary system and potentially nullifying the central bank’s influence at the state and local level.
Ultimately, the introduction of these bills represents a broader movement at the state level to support sound money practices and to potentially pave the way for a more diversified and independent monetary system in the United States. The implications of these legislative efforts could have far-reaching effects on the nation’s financial landscape, signaling a shift towards greater economic autonomy and diversity in currency options.
As Missouri and Oklahoma make strides towards redefining the role of gold and silver in the economy, the debate over the future of money in America continues to evolve, prompting discussions on the importance of sound currency practices and the potential benefits of a more diversified and resilient monetary system. The outcome of these bills could shape the trajectory of financial policy in the United States and influence the broader global conversation on the role of precious metals in modern economics.