Dedicated to the ideals of State's rights, small government, the unregulated truly free market, American individualism and personal freedom.
The power of III
Summum ius summa iniuria--More law, less justice
30 March 2011
Avoid taxes by paying for anything in gold and silver in Utah
The power of the Tenth Amendment and State's Rights in action:
Earlier this month, we reported on the sound money bill which the Utah legislature passed. Last Friday, Governor Herbert signed this bill into law.
The core component of this new law is the legalized recognition of gold and silver coins (issued by the federal government) as legal currency within the state. They may be used voluntarily by consenting parties, and rather than recognizing the face value of the coin (a horribly distorted metric of the coin’s worth), the market price of the gold or silver content is recognized as its value.
Further, the law provides for relief from certain taxes, including sales tax and capital gains tax. As gold and silver are rightly considered a currency and not a commodity, when in coin form, it is ludicrous to consider the exchange of dollars for gold a “purchase” subject to a sales tax. One does not pay sales tax when going to the bank to exchange a dollar for a peso, yuan, or other fiat note. It follows, then, that the exchange of currency between a dollar and gold or silver should likewise be exempt. This new law provides for that common sense tax exemption.
Cool. Relief from capital gains and sales tax, while being allowed legally to avoid the devaluing paper. Sound money for a change.