from TenthAmendmentCenter Website
Last week, Alabama Gov. Kay Ivey signed a bill into law exempting the sale of gold and silver bullion from state sales and use tax, encouraging its use and taking the first step toward breaking the Federal Reserve's monopoly on money.
Sen. Tim Melson (R-Florence) introduced Senate Bill 156 (SB156) on Jan. 11.
The new law exempts the gross proceeds from the sale of gold, silver, platinum, and palladium bullion in the form of bars, ingots or coins from sales and use tax in the state for five years after the date of enactment.
Imagine if you asked a grocery clerk to break a $5 bill and he charged you a 35 cent tax.
Silly, right? After all, you were only exchanging one form of money for another. But that's essentially what Alabama's sales tax on gold and silver bullion did.
By removing the sales tax on the exchange of gold and silver, Alabama will treat specie as money instead of a commodity.
This represents a small step toward reestablishing gold and silver as legal tender and breaking down the Fed's monopoly on money.
The law's impact will go beyond mere tax policy.
During an event after his Senate committee testimony, Ron Paul pointed out that it's really about the size and scope of government.
Practically speaking, eliminating taxes on the sale of gold and silver will crack open the door for people to begin using specie in regular business transactions.
This will mark an important small step toward currency competition.
If sound money gains a foothold in the marketplace against Federal Reserve notes, the people will be able to choose the time-tested stability of gold and silver over the central bank's rapidly-depreciating paper currency.
There are already signs of the tax repeals impact.
According to Coin Week, the state can now host major coin shows.
The United States Constitution states in Article I, Section 10,
States have simply ignored this constitutional provision for years.
It's impossible for a state to return to a constitutional sound money system when it taxes gold and silver as a commodity. This Alabama tax repeal takes a small step toward that constitutional requirement, ignored for decades in every state.
Such a tactic would set the stage to undermine the monopoly of the Federal Reserve (FED) by introducing competition into the monetary system.
Constitutional tender expert Professor William Greene said when people in multiple states actually start using gold and silver instead of Federal Reserve Notes, it would effectively nullify the Federal Reserve and end the federal government's monopoly on money.
Once things get to that point, Federal Reserve notes would become largely unwanted and irrelevant for ordinary people.
Nullifying the FED on a state by state level is what will get us there.
The law will go into effect June 1, 2018...