MISSISSIPPI HOUSE JOINS BULLION BANDWAGON
According to the following article shared by W.G., Mississippi has become the latest state to consider a bill revoking sales tax on bullion, in Mississippi's case bullion is defined as gold, silver, platinum or palladium (my apology again for all the gobbledegook that inevitably accompanies a copy-and-paste from this site)
There is an intriguing bit of information in this article, however, that I was unaware of, and it's this:
Currently, 41 states have eliminated sales taxes on gold and silver bullion. Repealing sales taxes on precious metal bullion 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. As Sound Money Defense League policy director Jp Cortez testified during a committee hearing on a similar bill in Wyoming in 2018, charging taxes on money itself is beyond the pale.
“In effect, states that collect taxes on purchases of precious metals are inherently saying gold and silver are not money at all.”
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 Mississippi’s sales tax on gold and silver bullion does. By eliminating this tax on the exchange of gold and silver, Mississippi 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.
One obvious consequence of this is that another word for a tax on money is "interest", and an interest charge on money means that the "money" isn't real money at all, but monetized debt, the facsimile of money. In other words, what is happening is that real money is re-emerging, and in competition with the facsimile of money, monetized debt, much like President Kennedy's executive order to print $4 billion of debt-free United States notes (paper money with a red Treasury seal, not the green seal of a "federal reserve note"). I'm old enough to remember spending paper money with blue seals (silver certificates) and red seals (United States notes) and watching as Federal Reserve notes gradually took over, and the others disappeared. Why did they disappear? Because the Federal Reserve Banks, when they received such bills, would simply remove them from circulation and destroy them. The last time I looked, intentional damage or destruction of a bill of currency was a crime. But why was this done?
Very simple: if by using(circulating) one type of bill you are inevitably paying a tax on your money in the form of interest, the value of your money gradually declines in small increments because of the cost of transaction, whereas another type of bill (or real specie coin) which does not carry interest does not lose value. Which, over the long term, would you rather keep and spend? The answer is obvious, which is why monetized debt must always seek to be the sole form of money via a money monopoly, because in the scheme of things, it simply cannot compete...
...ponder that transaction cost carefully the next time you're tempted by digital "currency"...
There's a potential downside to this too that needs to be pondered carefully: consider that most of the states that have passed such bullion measures in at least one of their state legislative houses, are states that have also bought into the idea of a convention of the states:
As you ponder that map and that unusual linkage, another question needs to be asked: is bullion and/or specie the only kind of real i.e., debt-free, money? The answer is already present in this article...
See you on the flip side...
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