Nebraska Senator introduces measure to eliminate income taxes on Gold and Silver
|(Lincoln, Nebraska) - The Nebraska State Senate will consider a measure that explicitly states that Central Bank Digital Currencies are not money in the state of Nebraska, as well as eliminating capital gains taxes from gold and silver.
Senator Ben Hansen (R-16) has introduced LB 1305 in the 2024 legislative season. The anti-CBDC language is modeled after measures that have progressed through the Florida and North Carolina legislatures.
Nebraska was smart to stop charging sales taxes on these metals a while back. Now, they're thinking about taking the next logical step by cutting out income taxes on transactions involving gold and silver. If the bill passes, Nebraska would join other states that have already said no to income taxes on the only type of money mentioned in the U.S. Constitution.
Here are a few reasons why slapping an income tax on the monetary metals is wrong, and why these bills are good public policy:
Current Nebraska law assesses taxes on imaginary gains
Under current law, a taxpayer who sells precious metals may end up with a capital “gain” in terms of Federal Reserve Notes. This capital “gain” is not necessarily a real gain, it’s often a nominal gain that results from the inflation created by the Federal Reserve and the attendant decline in the dollar’s purchasing power.
Yet this nominal gain is taxed at the federal level – and, because Nebraska uses federal adjusted gross income (AGI) as a starting point for Nebraska income calculations, this nominal gain is taxed again by the state.
Inflation harms the poorest among us
Inflation is a regressive tax. The hardest hit are wage earners, savers, and pensioners on fixed incomes – as well as those who own few or no tangible assets.
LB 1305 is the next logical step for Nebraska to support sound money
Investments in precious metals coins and bullion are rightly exempt from Nebraska's sales tax. Neutralizing Nebraska's income tax treatment of the monetary metals would remove the last major disincentive in the Cornhusker State that stands against the ownership and use of the monetary metals.
More than a dozen states have introduced pro-sound money legislation in 2024 so far, including Alaska, Indiana, Iowa, Georgia, Kansas, Kentucky, Missouri, New Hampshire, New Jersey, Oklahoma,Vermont, West Virginia, and Wisconsin.
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