Monetary Metals Tax Neutrality Act

pmbug

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Apparently this bill hasn't been assigned a number yet and isn't available on the usual govco websites that track pending legislation:

The battle to end taxation of constitutional money has reached the federal level as U.S. Representative Alex Mooney (R-WV) today introduced sound money legislation to remove all federal income taxation from gold and silver coins and bullion.

The Monetary Metals Tax Neutrality Act – backed by the Sound Money Defense League, Money Metals Exchange, and free-market activists – would clarify that the sale or exchange of precious metals bullion and coins are not to be included in capital gains, losses, or any other type of federal income calculation.
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A tax neutral measure, the Monetary Metals Tax Neutrality Act states that “no gain or loss shall be recognized on the sale or exchange of (1) gold, silver, platinum, or palladium coins minted and issued by the Secretary at any time or (2), refined gold or silver bullion, coins, bars, rounds, or ingots which are valued primarily based on their metal content and not their form.”

Under current IRS policy, a taxpayer who sells his precious metals may end up with a capital “gain” in terms of Federal Reserve Notes and must pay federal income taxes on this “gain.”

But the capital “gain” is not necessarily a real gain. It is often a nominal gain that simply results from the inflation created by the Federal Reserve and the attendant decline in the Federal Reserve Note dollar’s purchasing power.

Under Rep. Mooney’s bill (which has already been cosponsored by two others), precious metals gains and losses would not be included in any calculations of a taxpayer’s federal taxable income.
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Rep. French Hill (R-AR) and Rep. Raul Labrador (R-ID) joined today as original cosponsors. The text of the bill can be found here.

The Sound Money Defense League is a public policy group working nationally to bring back gold and silver as America’s constitutional money.
https://www.soundmoneydefense.org/news/2018/09/07/tax-on-gold-silver-bill-000179

Between this and Trump's trial balloon suggestion about indexing capital gains to inflation, there seems to be some political will germinating for elevating sound money back into play. Hopefully, it bears some fruit in the near future.
 

11C1P

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If that bill is real & gets to the floor, I'll be amazed. I wonder if it has a provision for how pure the metal is to be considered exempt. I don't know if they would, but just to help keep minimum standards I'd like to see them say that only 90% & higher qualifies. Maybe it's just me being a snob, but I just can't stand that stuff that has more of another kind of metal than the metal you would ostensibly be buying it for. $.02

I also would like to see copper & maybe even nickel added to that. Of course one might be able to say, all the money in his bank account is coins, so therefore any interest earned is exempt as well. Well, it'd be worth a try anyway! :paperbag:
 
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pmbug

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Interesting point. Would it cover 90% "junk" silver? What about 40%? It doesn't seem like either meet the two criterion listed.
 

singleshot

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"(1) gold, silver, platinum, or palladium coins minted and issued by the Secretary at any time"

I think THAT covers it.
 
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