Today in gold news, Alabama Senate Bill 156 would remove taxes on gold sales in the state. The idea is to reduce reliance on US dollars, which are prone to ever-decreasing value. In addition, many in the state believe the move will generate much more revenue than the $200,000 collected in taxes on gold sales last year; Alabama taxes are high enough that big travelling coin shows skip the state.
Proponents believe eliminating the tax on gold will both encourage sales of coins and small bars used as a store of value, and increase commerce through more business coming to Alabama. Taxes on jewelry and other “end uses” of gold would remain, only “monetary” forms of gold would be exempt from tax. Proponents of the idea also point out that gold maintains its value over time, unlike currencies like the US Dollar or the British Pound.
The Pound, as recently noted by the founder of Glint, has lost over half its purchasing power since 1990 – which may explain why it feels like things just cost a lot more these days. You can read more about Alabama’s bill and how it’s faring in today’s featured article here. Of course this Gold Enthusiast thinks it’s a great idea, and hopes it spreads.