Missouri may be the second state, after Utah, to authorize the use of gold and silver coins or special “sound-money depositories” to pay debts to state government.
Author: Dorothy Kosich
RENO (MINEWEB) –
As the Missouri General Assembly pushes toward adjournment, a bill that originally aimed at exempting gold investors from capital gains taxes has now transformed into the Missouri Sound Money Act of 2012, which would make gold and silver legal tender within the state.
The legislation would also eliminate several state taxes on gold and silver, including capital gains and sales taxes.
House Bill 1637 would allow the establishment of sound-money depositories that would allow citizens to deposit precious metals and use debit cards to pay bills out of those accounts. The depositories would be regulated by Missouri’s Secretary of State.
It also directs the state to accept the gold and silver coins issued by the U.S. government for payment of debts. However, the measure would not compel any other person to accept gold and silver coins as tender.
The method of establishing the value of gold and silver to be accepted by the state would be based on the London PM fix for that day’s transaction.
The measure has generated controversy in both houses of the Missouri General Assembly as lawmakers claimed the legislation was focused on establishing a gold standard and circumventing the Federal Reserve. These charges were dismissed by HB 1637 Senate sponsor Chuck Purgason, R-Caulfield.
However, among the measure’s chief proponents is the organization American Principles in Action, whose Gold Standard 2012 Project “works to advance reform efforts that promote the gold standard,” according to the group’s website.
The state of Utah enacted a similar law in 2011, allowing tax breaks for gold and silver coins, as well as directing the state to allow payment of debts using U.S. gold and silver coins
Meanwhile, Mike Lee, Republican U.S. Senator from Utah, and Rep. Kevin Brady, R-Texas, have recently introduced the Sound Dollar/Federal Reserve Modernization Act in the U.S. Congress, which directs the Federal Reserve to monitor the prices of major asset classes including gold and the value of the dollar relative to gold.
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