Two states have recently passed laws favoring bullion investors and in-state bullion traders, a move that may affect national bullion retailers. In mid-March, Alabama and Wyoming joined 36 other states when they passed laws SB 156 and HB 103 respectively within two days of each other, ending sales taxes on silver and gold bullion. This is a win for sound money advocates and bullion traders in these two states, who will now have an easier time competing with traders from other states. But how will this affect leading bullion companies and dealers, such as U.S. Money Reserve?
It comes as no surprise that these laws were passed with favorable margins, as the laws immediately put Alabama and Wyoming at an advantage over states that still retain sales taxes on precious metals. As projected by Alabama State Senator Tim Melson (R-District 1), these laws will encourage buyers of precious metals to keep their investments within the state instead of going elsewhere to avoid the taxes.
Thanks to these new laws, it is now easier for inhabitants of Alabama and Wyoming to purchase precious metals for investment and protect themselves from the inflationary practices of the Federal Reserve, according to Jp Cortez, Policy Director of the Sound Money Defense League. Alongside the protections given to buyers, these laws will also support coin and bullion dealers in these states, which were previously at an economic disadvantage.
The new laws will certainly encourage more trade of bullion, experts say. After the removal of sales taxes, will in-state traders be able to compete with the prices of national distributors such as U.S. Money Reserve?
In both Alabama and Wyoming, the bills were backed by the Sound Money Defense League, citing that states charging taxes on gold and silver are decreasing the monetary value of precious metals. The League makes the same case as the lead sponsor of HB 103, Roy Edwards, who compares charging sales taxes on gold and silver to being charged $1 in taxes to get a $20 bill changed at a gas station.
With Alabama and Wyoming, 38 states now have laws in place to fully or partially remove sales taxes on gold and silver, and it seems likely that more states will follow suit. Stefan Gleason, President of the Sound Money Defense League, believes the abuses of the Federal Reserve’s paper money system are becoming increasingly obvious—and that has become a driving force for states advancing sound money legislation.
Gleason is pushing for nationwide precious metals sales tax exemptions, going so far as to say that Federal Reserve notes are invaluable as money because there is such high counterparty risk attached to them. He argues that restoring gold and silver as money will solve inflation and runaway debt problems.
The Sound Money Defense League is campaigning for those most adversely affected by currency debasement—anti-spendthrifts, wage earners, and those earning a fixed income. In the process, the League is cleverly promoting the trade of bullion, which is good news for bullion distributors and dealers such as.
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This is also good news for both national and in-state traders because the benefits of removing sales taxes affect everyone, from investors to traders to the state economy itself. With sales taxes on gold and silver removed, states are can attract national coin show conventions, which in turn bring increased tourist spending. These dividends often outweigh the tax revenue lost from eliminating sales taxes, as well as keep precious metals investments in-state. These facts, along with public support through calls and emails to the legislatures, seem to be enough to sway state legislatures. It’s more than likely that other states will pass their own laws to keep up with the bullion movement.