In an article Monday from the New American, Utah would also exempt gold and silver sales from all taxes, both state and federal.
In addition to possibly making precious-metal coin lawful money for intrastate and government transactions, the bill would exempt gold and silver from state sales, income, and capital-gains taxes. The legislation also states that individuals cannot be compelled to accept precious metals instead of Federal Reserve Notes. It was approved in the House with a vote of 47 to 26.
According to the bill’s summary, it “recognizes gold and silver coins that are issued by the federal government as legal tender in the state and exempts the exchange of the coins from certain types of state tax liability.” Under the measure, Utah citizens would be able to pay their taxes with precious metals at market value, as opposed to the face value used by the federal government, which is far less than the price of the actual gold or silver in the coins.
Utah has become the second state to consider using gold and silver coins in legal tender transactions. Back in January, the state of Virginia put together a commission to prepare their citizens to use gold and silver in the advent of a breakdown in the dollar, or a bankruptcy by the Fed.
The Constitution states from the beginning that our government has the mandate to issue money in the form of gold and silver. In 1913, they allowed that function to be usurped by a private organization of banks known as the Federal Reserve, and over time, money has lost its gold and silver backing and now reigns as a fiat currency.
The state of Utah is trying to once again bring sound money to its citizens, and if this new bill passes in the legislature, then gold and silver will once again be part of the monetary system.