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South Carolina Bill to make gold and silver legal tender in the State (real money)

tincuptincup Posts: 3,700 ✭✭✭✭

A bill has been introduced to allow gold and silver to become 'real money' in South Carolina.... and legal tender. Stay tuned to see how fast the Feds try to shut it down.... ...or maybe it will not amount to much.

https://zerohedge.com/political/south-carolina-bills-would-cut-taxes-gold-and-silver-support-sound-money

"House Bill 3377 (H3377) would make gold and silver coins legal tender in the state. Under the proposed law, “gold and silver coins minted foreign or domestic shall be legal tender in the State of South Carolina under the laws of this State. No person or other entity may compel another person or other entity to tender or accept gold or silver coin unless agreed upon by the parties.”

Practically speaking, this would allow South Carolina residents to use gold or silver coins to pay taxes and other debts owed to the state. In effect, it would put gold and silver on the same footing as Federal Reserve notes."

----- kj

Comments

  • RobMRobM Posts: 114 ✭✭

    But as that article states, it's already being done in UT, OK, and WY, so no need for gov't to object. It sounds great until the IRS wants to know your cost basis for the possibility of federal taxes on each and every transaction.

  • rickoricko Posts: 78,995 ✭✭✭✭✭

    This will prove interesting as the movement proceeds to other states. However, I am certain there will be efforts by the Fed and politicians (with vested interests) to develop some legal maneuver to stop it. Simply too much power vested in the fiat system. Cheers, RickO

  • s4nys4ny Posts: 1,521 ✭✭✭

    Aren't the American Gold Eagles legal tender? I think someone used AGEs to purchase something and won a court case.

  • blitzdudeblitzdude Posts: 3,149 ✭✭✭✭✭

    Nothing more that I would rather use to pay my state taxes than all these useless hunks of gold double eagles I've hoarded over the years. Too bad such laws are not yet recognized in The Commonwealth. RGDS!

  • TwoSides2aCoinTwoSides2aCoin Posts: 41,930 ✭✭✭✭✭
    edited December 19, 2020 7:44AM

    A client put 80 ounces in his IRA when gold was $1150. A lot of folks say never swap paper IRA for gold IRA, but $700 x 80 is real money too.

  • isaiah58isaiah58 Posts: 377 ✭✭✭

    I do not see how this establishes a "fair value" to be used. Many progressive establishments will accept bullion, even crypto, with buffers to protect them. Same as a bullion dealer utilizes. Personally, I would avoid "negotiating " with individual business owners over the current value of my bullion.

    Yes, not paying sales tax helps some. Not worrying about capital gains might be nice, the flip side is one could not write off potential losses though.

  • johnny9434johnny9434 Posts: 22,778 ✭✭✭✭✭

    @TwoSides2aCoin said:
    A client put 80 ounces in his IRA when gold was $1150. A lot of folks say never swap paper IRA for gold IRA, but $700 x 80 is real money too.

    a good way to save for the future

  • derrybderryb Posts: 30,702 ✭✭✭✭✭
    edited December 20, 2020 7:15AM

    @tincup said:

    "House Bill 3377 (H3377) would make gold and silver coins legal tender in the state. Under the proposed law, “gold and silver coins minted foreign or domestic shall be legal tender in the State of South Carolina under the laws of this State. No person or other entity may compel another person or other entity to tender or accept gold or silver coin unless agreed upon by the parties.”

    Practically speaking, this would allow South Carolina residents to use gold or silver coins to pay taxes and other debts owed to the state. In effect, it would put gold and silver on the same footing as Federal Reserve notes."

    Legally speaking SC residents would not be able to use gold or silver coins to pay taxes or for anything unless agreed upon by the parties.

    What should be looked at is how this may or may not change the status of paying taxes on the sale or gains involving gold and silver. Losses on holding dollars (inflation) are not tax deductible as are not any gains in purchasing power. If gold and silver are given "money" status there should be some affect on their taxable status.

    If I keep shrinking the value of the dollar, it makes it look like your stock portfolio is growing. But if you then take your stock portfolio and measure it in gold. . . - Peter Schiff

  • derrybderryb Posts: 30,702 ✭✭✭✭✭

    @TwoSides2aCoin said:
    A client put 80 ounces in his IRA when gold was $1150. A lot of folks say never swap paper IRA for gold IRA, but $700 x 80 is real money too.

    How long does he have to wait to have access to it? I suspect it is nowhere as liquid as the gold in my SDB. Liquidity with any asset is important.

    If I keep shrinking the value of the dollar, it makes it look like your stock portfolio is growing. But if you then take your stock portfolio and measure it in gold. . . - Peter Schiff

  • HigashiyamaHigashiyama Posts: 1,479 ✭✭✭

    @derryb said: "What should be looked at is how this may or may not change the status of paying taxes on the sale or gains involving gold and silver. Losses on holding dollars (inflation) are not tax deductible as are not any gains in purchasing power. "

    I agree.

    My fantasy (and it will likely remain a fantasy) is that someone challenges the taxation of capital gains as income, since a substantial portion of a capital "gain" is typically inflation. As such, it is a wealth tax rather than an income tax. The S.C. law seems to recognize this issue; it is nice to have it recognized, even if it is only at a state level, and therefore of modest impact.

    Higashiyama
  • jmski52jmski52 Posts: 20,737 ✭✭✭✭✭

    The Feds will tax anything that they think will help to float their own boat. It's not about "The General Welfare" when wealth is redistributed to a select few, based on criteria formulated by that same select few.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • derrybderryb Posts: 30,702 ✭✭✭✭✭

    If I keep shrinking the value of the dollar, it makes it look like your stock portfolio is growing. But if you then take your stock portfolio and measure it in gold. . . - Peter Schiff

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