A historic bill was introduced today by South Carolina Senator Jim DeMint. It would halt the federal government or any state from taxing constitutional money - gold and silver coin. The Sound Money Promotion Act would pave the way for states to once again assert their rights under the Constitution use gold and silver coin as legal tender.
The bill is co-sponsored by Senator's Rand Paul (KY) and Mike Lee (UT). Introduction of this bill is a historic event, in that it legitimizes the move toward sound money by recognizing it for what it is - constitutional money.
Should the bill pass, for the first time since private gold ownership was re-established in 1974, constitutional money will not be taxed as a collectable or because of capital gains. Taxing paper "gains" in the value of gold (and to a lesser degree silver) has always been a diversion, and an inconsistent one at that. The statists who constantly pan gold, do so because they claim it is not an "interest bearing" asset, thus has no utility as an investment vehicle. What they fail to understand is that gold and silver are, and always will be, a long term store of value. As such, they are, and always will be, a form of money.
The battle to pass this legislation will be difficult. The Senate is a notorious protector of the Federal Reserve, and will doubtless try to stop this bill’s passage. However, the beauty of this bill is in its simplicity. All of two pages, it does nothing more than assert what is plainly written in Article 1 Section 10 of our Constitution - that gold and silver coin are a legal tender in payment of debts. By default then, they should not be taxed in any way, shape or form.
The sound money battle now has a higher profile at the national level. It is no longer Rep. Ron Paul's lone voice crying in the congressional wilderness. The Senate is now involved. And that means states are gaining increasing political cover to implement sound money laws, similar to the one passed earlier this year in Utah.
It will not be long before we know who in Washington, besides these three Senators and Rep. Paul, understand the history of constitutional, honest money. As I have written before and am stating again. Put this issue on your front burner now. It is moving into the main stream. Become a leader in your state and educate others (including your state legislators). Honest money benifits us all. People are starting to take notice of that fact.
