Missouri And Oklahoma Introduce Bills To Reclassify Gold And Silver, Making Metals Legal Money Again And Remove Capital Gains Tax

The following report is by Michael Maharrey via SchiffGold.com (emphasis theirs), per OilPrice.com:

Bills filed in the Oklahoma and Missouri legislatures for the 2024 legislative session would eliminate state capital gains taxes on the sale of gold and silver. The legislation would also take other steps to treat gold and silver as money instead of as commodities.

In Missouri, Rep Doug Richey filed HB1867 on Dec. 11. Rep. Bill Hardwick filed HB1955 on Dec. 15. The bills are companions to SB735 filed in the Senate by Sen. William Eigel earlier this month.

In Oklahoma, Sen. Shane Jett filed SB1507 and Sen. Nathan Dahm is running SB1508.

The enactment of any of these bills would eliminate state capital gains taxes on the sale and exchange of gold and silver bullion.

Both of these states are already among the 42 that do not levy sales taxes on gold and silver bullion.

Exempting the sale of gold and silver bullion from taxes lowers the investment cost of precious metals. It also takes a step toward treating gold and silver as money instead of commodities. Taxes on precious metal bullion erect barriers to using gold and silver as money by raising transaction costs.

Imagine if you asked a grocery clerk to break a $5 bill and he charged you a 35-cent tax. Silly, right? After all, you were only exchanging one form of money for another. But that’s essentially what a sales tax on gold and silver bullion does. By eliminating this tax on the exchange of gold and silver, Missouri and Oklahoma would treat 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.

“We ought not to tax money – and that’s a good idea. It makes no sense to tax money,” former U.S. Rep. Ron Paul said during testimony in support of an Arizona bill that repealed capital gains taxes on gold and silver in that state. “Paper is not money, it’s fraud,” he continued.

The impact of enacting this legislation will go beyond mere tax policy. During an event after his Senate committee testimony, Paul pointed out that it’s really about the size and scope of government.

If you’re for less government, you want sound money. The people who want big government, they don’t want sound money. They want to deceive you and commit fraud. They want to print the money. They want a monopoly. They want to get you conditioned, as our schools have conditioned us, to the point where deficits don’t matter.

GOLD AND SILVER AS LEGAL TENDER

Under provisions in the Missouri bill, gold and silver in physical or electronic form would be accepted as legal tender and would be receivable in payment of all debts contracted for in the state of Missouri. The state would be required to accept gold and silver for the payment of public debts. Private debts could be settled in gold and silver at the parties’ discretion.

Practically speaking, this would allow Missourians to use gold or silver coins as money rather than just as mere investment vehicles. In effect, it would put gold and silver on the same footing as Federal Reserve notes.

Oklahoma took a similar step in 2014. Utah and Arkansas also consider gold and silver legal tender.

The proposed Missouri law also includes provisions authorizing the state to invest in gold or silver “greater than or equal to one percent of all state funds” and to expressly bar any state agency, department, or political subdivision from seizing gold or silver bullion.

BACKGROUND

The United States Constitution states in Article I, Section 10, “No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts.” Currently, all debts and taxes in the US are either paid with Federal Reserve Notes (dollars) which were authorized as legal tender by Congress, or with coins issued by the US Treasury — very few of which have gold or silver in them.

The Federal Reserve destroys this constitutional monetary system by creating a monopoly based on its fiat currency. Without the backing of gold or silver, the central bank can easily create money out of thin air. This not only devalues your purchasing power over time; it also allows the federal government to borrow and spend far beyond what would be possible in a sound money system. Without the Fed, the US government wouldn’t be able to maintain all of its unconstitutional wars and programs. The Federal Reserve is the engine that drives the most powerful government in the history of the world.

Tax repeals knock down one of the tax barriers that hinder the use of gold and silver as money, and could also begin the process of abolishing the Federal Reserve’s fiat money system by attacking it from the bottom up – pulling the rug out from under it by working to make its functions irrelevant at the state and local levels, and setting the stage to undermine the Federal Reserve monopoly by introducing competition into the monetary system.

In a paper presented at the Mises Institute, Constitutional tender expert Professor William Greene said when people in multiple states actually start using gold and silver instead of Federal Reserve Notes, it would effectively nullify the Federal Reserve and end the federal government’s monopoly on 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.

Once things get to that point, Federal Reserve notes would become largely unwanted and irrelevant for ordinary people.

These bills make up part of a broader movement at the state level to support sound money.

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AUTHOR COMMENTARY

At the same time it is worth noting that states such as Florida and Indiana have moved to ban central bank digital currencies (CBDCs); but as shown in those reports, they are just ‘show’ bills more than anything else, as they don’t have any real teeth to them. Read them to see the proof:

• Florida Governor Ron DeSantis Passes Bill Banning CBDCs In State, Encourages Others To Do The Same
• Indiana Passes Law To Ban Central Bank Digital Currencies, Redefining The Definition Of ‘Money’
• US House Financial Services Committee Forwards Two Bills To Prevent Creation Of CBDC

Gold and silver is real money, and it is God’s true monetary system. There’s plenty of verses behind that so I won’t get into that too much, except for some of these examples.

[9] And I bought the field of Hanameel my uncle’s son, that was in Anathoth, and weighed him the money, even seventeen shekels of silver. [10] And I subscribed the evidence, and sealed it, and took witnesses, and weighed him the money in the balances.

And the LORD hath blessed my master greatly; and he is become great: and he hath given him flocks, and herds, and silver, and gold, and menservants, and maidservants, and camels, and asses.

Jeremiah 32:9-10; Genesis 24:35

As the fiat system breaks down you are going to see more states and countries do this, as central banks are on precious metal buying sprees right now, as the world is about ready to decouple from the petrodollar and look for a hedge against the wave of dollarized inflation.

However, and I know there are those who will chastise me for daring to even bring this up, but I still remain cautious about the future of gold and silver as a safe and sound asset. No, I am not against owing gold and silver, and I do affirm their benefits; but where I am skeptical and cautious is about the long term future of it, in the context of CBDCs, digital IDs, and the collapse of the Western world that is around the corner.

[1] How is the gold become dim! how is the most fine gold changed! the stones of the sanctuary are poured out in the top of every street. [2] The precious sons of Zion, comparable to fine gold, how are they esteemed as earthen pitchers, the work of the hands of the potter!

Lamentations 4:1-2 – written by Jeremiah during Judah’s collapse and oppression before they were fully taken over by the Babylonians. Read the whole chapter to read about the famine and thirst, and the cannibalism that was going on.

In the midst of a full-blown breakdown of the system, gold and silver will not save. And then you have to figure in the CBDCs and digital IDs that are ready in the wake.

I know many of you have commented and written to me that buying gold and silver is basically not even applicable at this point, and I totally get that. And while I do not have a great answer, the gold and silver zealots do not seem to have much of an answer either for the new system, other than just hopium that it’ll be gold-backed based on no real evidence. You can read more about that here: Rumors Still Persist That BRICS Might Back Their Currency With Gold, But Will They?

I say this as someone who is just analyzing the whole sphere of what’s going on, and seeing all the frightened ants, sort of speak, running for cover as the spray can of Raid bears down. Don’t get me wrong, like I said, gold and silver is God’s money and has its uses, but with what we are going into I have my doubts.

Charge them that are rich in this world, that they be not highminded, nor trust in uncertain riches, but in the living God, who giveth us richly all things to enjoy;

1 Timothy 6:17

Oh, and God forbid should the Feds do a repeat of 1933 and exact the gold from the people, and then put a heftier price tag on it afterwards. Only now it would be easier to do in the digital age.

And Jehoiakim gave the silver and the gold to Pharaoh; but he taxed the land to give the money according to the commandment of Pharaoh: he exacted the silver and the gold of the people of the land, of every one according to his taxation, to give it unto Pharaoh-nechoh.

2 Kings 23:35

To me, things such as land and livestock, natural resources, and things in that wheelhouse are going to prove themselves more valuable as time rolls on.

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[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).

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