by Mike Maharrey, Activist Post:
A Virginia bill that would remove sales taxes from some purchases of gold and silver passed an important House committee yesterday. The legislation would take an important first step toward encouraging its regular use as currency and breaking the Federal Reserve’s monopoly on money.
A bipartisan coalition of delegates sponsor House Bill 1668 (HB1668). The legislation would exempt gold, silver, or platinum bullion or legal tender coins whose sales price exceeds $1,000 from from state sales tax. Each piece of gold, silver, or platinum or legal tender coin need not exceed $1,000, provided that the sales price of one entire transaction of such pieces exceeds $1,000. ”
Under the proposed law, the exemption would remain in place until June 30, 2022.
The House Finance Committee unanimously passed HB1688 with an amendment 22-0. The amendment makes the new provisions effective Jan. 1, 2018.
By removing the sales tax on some exchanges of gold and silver, Virginia would move toward treating specie as money instead of a commodity. This represents a small step toward reestablishing gold and silver as legal tender and breaking down the Fed’s monopoly on money.
In a state that has not been very friendly to sound money, this represents a first step. If passed into law, people in Virginia should pressure the legislature – in future years – to eliminate both the sunset clause and the $1000 minimum.
Practically speaking, fully and permanently eliminating taxes on the exchange of gold and silver would open the door for people to begin using specie in regular business transactions. This would mark an important step toward currency competition. If sound money gains a foothold in the marketplace against Federal Reserve notes, the people would be able to choose the time-tested stability of gold and silver over the central bank’s rapidly-depreciating paper currency.
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