Stefan Gleason Blog | Nebraska Senator Introduces Measure To Eliminate Income Taxes On Gold And Silver | TalkMarkets
President at Money Metals Exchange
Contributor's Links: Money Metals Exchange
Gleason is president of Money Metals Exchange, a national precious metals investment company and news service with over 1,000,000 readers, and more than 500,000 paid customers. He launched the company while president of a national newsletter publishing company dedicated to helping subscribers ...more

Nebraska Senator Introduces Measure To Eliminate Income Taxes On Gold And Silver

Date: Tuesday, January 23, 2024 10:11 AM EDT

Nebraska Senator Introduces Measure to Eliminate Income Taxes on Gold and Silver

The Nebraska State Senate will consider a measure that explicitly states that Central Bank Digital Currencies are not money in the state of Nebraska, as well as eliminating capital gains taxes from gold and silver.

Senator Ben Hansen (R-16) has introduced LB 1305 in the 2024 legislative season. The anti-CBDC language is modeled after measures that have progressed through the Florida and North Carolina legislatures.

Nebraska was smart to stop charging sales taxes on these metals a while back. Now, they're thinking about taking the next logical step by cutting out income taxes on transactions involving gold and silver. If the bill passes, Nebraska would join other states that have already said no to income taxes on the only type of money mentioned in the U.S. Constitution.

Here are a few reasons why slapping an income tax on the monetary metals is wrong, and why these bills are good public policy:

-Current Nebraska law assesses taxes on imaginary gains. Under current law, a taxpayer who sells precious metals may end up with a capital “gain” in terms of Federal Reserve Notes. This capital “gain” is not necessarily a real gain, it’s often a nominal gain that results from the inflation created by the Federal Reserve and the attendant decline in the dollar’s purchasing power. 

Yet this nominal gain is taxed at the federal level – and, because Nebraska uses federal adjusted gross income (AGI) as a starting point for Nebraska income calculations, this nominal gain is taxed again by the state.

-Inflation harms the poorest among us.

Inflation is a regressive tax. The hardest hit are wage earners, savers, and pensioners on fixed incomes – as well as those who own few or no tangible assets.

-LB 1305 is the next logical step for Nebraska to support sound money.

Investments in precious metals coins and bullion are rightly exempt from Nebraska's sales tax. Neutralizing Nebraska's income tax treatment of the monetary metals would remove the last major disincentive in the Cornhusker State that stands against the ownership and use of the monetary metals.

More than a dozen states have introduced pro-sound money legislation in 2024 so far, including Alaska, Indiana, Iowa, GeorgiaKansasKentucky, Missouri, New Hampshire, New JerseyOklahoma,VermontWest Virginia, and Wisconsin.


More By This Author:

Chinese Gold Demand Up In 2023 Even With Soaring Prices
Which Countries Have The Most Gold?
NJ Governor Vetoes Popular Gold And Silver Sales Tax Exemption Bill

Disclaimer: This and other personal blog posts are not reviewed, monitored or endorsed by TalkMarkets. The content is solely the view of the author and TalkMarkets is not responsible for the content of this post in any way. Our curated content which is handpicked by our editorial team may be viewed here.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.