Ron Paul Bill Seeks Coin and Bullion Tax Ban
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By CoinNews.net on Dec 14th, 2009
Congressman Ron Paul [R-TX] on Wednesday introduced legislation that would, if signed into law, end taxes on coins and bullion and repeal legal tender laws. The bill’s lofty goal is to reintroduce a system of competing currencies.
"At this country’s founding, there was no government controlled national currency. While the Constitution established the Congressional power of minting coins, it was not until 1792 that the US Mint was formally established," Rep. Ron Paul said.
"In the meantime, Americans made do with foreign silver and gold coins. Even after the Mint’s operations got underway, foreign coins continued to circulate within the United States, and did so for several decades.
H.R. 4248, or the Free Competition in Currency Act of 2009, includes several measures to end government controlled currency. One is to repeal Section 5103 of Title 31 of the United States Code which includes legal tender language that, according to Ron Paul, should not exist.
"There is nothing in the Constitution that grants the Congress the power to enact legal tender laws. We, the Congress, have the power to coin money, regulate the value thereof, and of foreign coin, but not to declare a legal tender. Yet, there is a section of US Code, 31 USC 5103, that purports to establish US coins and currency, including Federal Reserve notes, as legal tender."
Federal law currently mandates short-term capital gains rates of up to 35 percent for coins and long-term capital gains taxes of 28 percent, which Ron Paul argues is a hindrance to competitive currencies. H.R. 4248 would eliminate taxes on "any coin, medal, token, or gold, silver, platinum, palladium, or rhodium bullion" as well as restrict states from assessing taxes and fees "on any currency."
Finally, the legislation would eliminate laws that prohibit the operation of private mints, and retroactively end prosecutions and convictions of citizens who have been charged with such. Ron Paul specifically discussed this aspect of the bill as well as the raids on Liberty Dollar when he introduced the legislation.
"Evidently the government felt threatened, as Liberty Dollars had all their precious metal coins seized by the FBI and Secret Service in November of 2007. Of course, not all of these coins were owned by Liberty Services, as many were held in trust as backing for silver and gold certificates which Liberty Services issued. None of this matters, of course, to the government, which hates competition. The responsibility to protect contracts is of no interest to the government."
The bill has been referred to the Committee on Financial Services, and in addition to the Committees on Ways and Means, and the Judiciary.
For any legislation to become law, it must pass in the House, Senate and get signed by the President.
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Congressman Ron Paul [R-TX] on Wednesday introduced legislation that would, if signed into law, end taxes on coins and bullion and repeal legal tender laws. The bill’s lofty goal is to reintroduce a system of competing currencies.
"At this country’s founding, there was no government controlled national currency. While the Constitution established the Congressional power of minting coins, it was not until 1792 that the US Mint was formally established," Rep. Ron Paul said.
"In the meantime, Americans made do with foreign silver and gold coins. Even after the Mint’s operations got underway, foreign coins continued to circulate within the United States, and did so for several decades.
H.R. 4248, or the Free Competition in Currency Act of 2009, includes several measures to end government controlled currency. One is to repeal Section 5103 of Title 31 of the United States Code which includes legal tender language that, according to Ron Paul, should not exist.
"There is nothing in the Constitution that grants the Congress the power to enact legal tender laws. We, the Congress, have the power to coin money, regulate the value thereof, and of foreign coin, but not to declare a legal tender. Yet, there is a section of US Code, 31 USC 5103, that purports to establish US coins and currency, including Federal Reserve notes, as legal tender."
Federal law currently mandates short-term capital gains rates of up to 35 percent for coins and long-term capital gains taxes of 28 percent, which Ron Paul argues is a hindrance to competitive currencies. H.R. 4248 would eliminate taxes on "any coin, medal, token, or gold, silver, platinum, palladium, or rhodium bullion" as well as restrict states from assessing taxes and fees "on any currency."
Finally, the legislation would eliminate laws that prohibit the operation of private mints, and retroactively end prosecutions and convictions of citizens who have been charged with such. Ron Paul specifically discussed this aspect of the bill as well as the raids on Liberty Dollar when he introduced the legislation.
"Evidently the government felt threatened, as Liberty Dollars had all their precious metal coins seized by the FBI and Secret Service in November of 2007. Of course, not all of these coins were owned by Liberty Services, as many were held in trust as backing for silver and gold certificates which Liberty Services issued. None of this matters, of course, to the government, which hates competition. The responsibility to protect contracts is of no interest to the government."
The bill has been referred to the Committee on Financial Services, and in addition to the Committees on Ways and Means, and the Judiciary.
For any legislation to become law, it must pass in the House, Senate and get signed by the President.
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<< <i>Methinks that bill will be Dead on arrival. Once it goes to committee it will never see the light of day again. >>
You right as rain there...........
Frankly, I think the bill reduces his credibility as a serious legislator.
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Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
<< <i>
<< <i>Methinks that bill will be Dead on arrival. Once it goes to committee it will never see the light of day again. >>
You right as rain there........... >>
Agreed!
<< <i>
<< <i>Methinks that bill will be Dead on arrival. Once it goes to committee it will never see the light of day again. >>
You right as rain there........... >>
Yup. The Dems and BO like taxes too much to give up any options.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>And what does this get traded for that he really wants? >>
Maybe nothing, but at least he can get them on record as opposing alternatives to the Fed and fiat money.
<< <i>I kind of like the idea in theory, but would ANY businessman in the country really want to deal with multiple means of exchange. People are already free to barter any goods they choose, after all. >>
It's not a "bad" idea at all, but quite radical considering the current status quo.
Dr. Paul has been an outspoken advocate of the gold standard his entire career. In fact, his entire political career he has advocated returning to the gold standard; eliminating the income tax (via the repeal of the 16th amendment); and dismantling the Federal Reserve system.
Ron Paul has always been against fiat, paper money and in favor of a bullion-backed currency (silver, gold, platinum, etc.). He argues that gold is not an investment but rather a store of money. Furhter, that as gold prices rise against the dollar, it is really the inflationary effect of printing more fiat "money out of air". In a 2006 address to Congress he correctly predicted the fallout of the economic crisis of 2008. All due to our current fiat currency system, the FED and central banking system, according to Paul.
He is also opposed to the military industrial complex and was against both the Iraq and Afghanistan wars. He is quite consistent in his views and adamantly pursues his legislative goals. This latest bill is quite consistent with Congressman Paul's beliefs.
What's scary is that he may very well be right!
An oz. of silver is an oz. of silver and an oz. of gold is an oz. of gold, regardless of where it is minted, so I doubt that businesses will have a problem with the liquidity of "real" money. The Legal Tender act of 1862, which created the fiat currency, is also responsible for the confiscation of the Liberty Dollars by the U.S. Secret Service. Apparently only the U.S. Mint can create "money", even if it is fiat money. Heaven forbid is some private entity create "real" money.
Now, imagine the nation without an income tax? How about eliminating the instution of the FED, which was established a century ago? And what if we replace the fiat money with a modern day "gold" standard? And what if we implement all of these Ron Paul proposals at once?
Where Ron Paul goes off stream, IMO is concluding that fiat money, the 16th Amendment and the FED are "unconstitutional". According to our Constitution all of the "laws" creating the fiat currency and banking entities were checked and balanced at all three levels of Gov't. at the time. Therefore, the unconstitutional argument fails.
Consider that the 16th Amendmenat (instituting a Federal Income Tax) was passed in 1913 along with the Federal Reserve Act being passed the same year! These two Acts of Congress radically changed the financial landscape leading to the eventual abandonment of the gold-backed dollar some 40 years ago.
Also consider that the first Act to create fiat money was enacted by Congress in 1862 & 1863 and signed by that well-known "Dem" and "BO" precursor, A. Lincoln! Later in 1870 & 1871, the Supreme Court ruled that the fiat money acts of 1862-63 were Constitutional.
So there you have it. The Legislative Branch passed a bill to create fiat Money to allow the gov't. to go into debt; the Executive Branch signed it into Law and the Judicial Branch ruled that it was Constitutional.
At the end of the day, IMHO, there is a lot of merit to Dr. Paul's philosophy.
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<< <i>An oz. of silver is an oz. of silver and an oz. of gold is an oz. of gold, regardless of where it is minted >>
Except for the fact that who is going to monitor and control any purity testing so that the public is protected from cheats who add impurities to dilute the value?
The name is LEE!
<< <i>Ron Paul oughta think about sponsoring a bill to eliminate the paper dollar! >>
On the currency board, they're hoping he sponsors a bill to eliminate coins.
<< <i>
<< <i>Ron Paul oughta think about sponsoring a bill to eliminate the paper dollar! >>
On the currency board, they're hoping he sponsors a bill to eliminate coins.
Well then he oughta sponsor a bill to eliminate the Currency Board then.
The name is LEE!