Biden Administration Seeks To Raise Taxes On Investors

The Ohio House of Representatives has approved a bill which helps Buckeye State citizens protect themselves from the loss of monetary purchasing power caused by federal money printing. The bill includes a provision to eliminate the sales and use tax on purchases of bullion products in Ohio.

It would reverse Ohio’s recent repeal of a longstanding sales tax exemption on the sale of precious metals. Seeing the harm caused to in-state businesses, tourism dollars, and Ohio investors, lawmakers now seek to reinstate the exemption.

This is no surprise. In 2016, Louisiana politicians experimented briefly with slapping sales taxes on precious metals purchases. They quickly reversed course only one year later -- and reinstated the exemption on precious metals -- because businesses, coin conventions, and state tax revenues were leaving the state.

Sales taxes are typically levied on final consumer goods. Computers, shirts, and shoes carry sales taxes because the consumer is "consuming" the good. Gold and silver are held as forms of savings and investment.

Many who buy precious metals do so in small increments as a way of holding some wealth outside the financial system and protecting it from inflation. For the same reasons, gold and silver are also held by billionaires and large institutions.

Even those among the wealthy who aren’t gold bugs at heart see the wisdom of including tangible assets in their portfolios. 

Businessman Kevin O’Leary of “Shark Tank” fame is known for investing in up-and-coming enterprises. But he revealed in a recent interview with Stansberry Research that he also owns old.

Kevin O'Leary: The long-term continuity of gold as a hedge against inflation is undeniable. There is no question that other trends have come and gone, but gold has been a constant since the times of the Romans when they were mining it on the island of Cyprus. Those mines still exist. And so, at the end of the day, you have to hand it to gold for being a long-term glean of value.

The other issue, if you're really concerned about hyperinflation and the ability to have an asset that is a solid asset, and the trouble with crypto, you can't really see it. You have to hold it in a wallet. It exists in the ether, the digital ether. Gold, you can actually physically hold a bar of gold. Now, that could be a pro or a con depending on the way you think about it. Now, I own gold. I have a 5% weighting in gold. To be specific, two and a half percent of it is in physical gold. I pay the storage.

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Disclaimer: Money Metals Exchange and its staff do not act as personal investment advisors. Nor do we advise about or advocate the purchase or sale of any regulated security, listed on any ...

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