A few weeks back I discussed how President Trump could deliver massive, pro-growth tax cuts without any approval from Congress. Today, one of these suggested policy changes received a major endorsement when publisher and supply-side icon Steve Forbes revealed his support.
Writing for Forbes.com, Steve Forbes called for for eliminating taxes on gold and silver stating:
When you exchange a $20 bill for two $10 bills, you don’t pay sales tax on the transaction, even though, theoretically, you are “buying” the tens. The notion is utterly preposterous. Yet if you purchase a gold coin that was created by the U.S. Mint and is legally usable for commercial transactions, in some states you have to pay sales tax on that coin. Uncle Sam also says people who buy and sell such coins are liable for capital gains taxes. Of course, you would never buy a silver dollar from the mint for, say, $35 and then use it to pay for a $1 candy bar, but the point is that such coins are legal tender.
That’s why the White House should follow the recommendation of the American Principles Project, an organization that, among other things, advocates sound money: “President Trump should direct the U.S. Treasury Department to issue a rule ending taxation on U.S.-minted gold coins.” While we’re at it, let’s add silver ones as well.
Americans should not have to face punitive taxes for owning gold and silver. Our current tax treatment of gold puts the U.S. at an enormous economic disadvantage compared to the rest of the world — and countries such as Russia and China are buying up gold en masse.
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President Trump can change this simply by issuing an executive order directed to his Treasury Department. For middle class families, this tax cut would eliminate a major disincentive to owning gold as a hedge against inflation, thereby making it easier to protect their savings.
While there is little hope for economically beneficial legislation to emerge from our current divided Congress, there are numerous pro-growth actions that President Trump can take that could make a big impact for American families.
Treating gold as money (as specified by the Constitution), rather than property, would make a great “Tax Cut 1.5.”
Photo credit: Gage Skidmore