Futures Market News
Republican senators promote elimination of tax burden on gold, silver coins
Jul 07, 2011 03:30 PM
Three Republican senators introduced legislation to eliminate a tax burden on gold and silver coins used as legal tender, according to a press release.
The Sound Money Promotion Act was filed late last month by Jim DeMint of South Carolina, Rand Paul of Kentucky and Mike Lee of Utah, which was the first state to legalize the precious metals as legal tender. Utah's governor signed off on that effort on May 9 and at least 12 additional states are debating the issue, including the state DeMint represents.
"Thanks to the government's reckless over-spending, continued bailouts, and the Federal Reserve's easy money policy, this year the purchasing power of the dollar hit an all-time low in the several decades since we went off the gold standard," according to DeMint.
The move toward precious metals' use as legal tender is generally viewed as a vote of un-confidence in the U.S. dollar and those charged with regulating it.
The senators noted that gold prices are valued "at historic highs" while the greenback is hovering around "historic lows."
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