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Rep. Mooney seeks to audit gold intervention, ban federal tax on precious metal coins

ZZZZZ

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Hope this guy has some Kevlar underwear and some gold of his own stashed away.

Rep. Mooney seeks to audit gold intervention, ban federal tax on precious metal coins

Submitted by cpowell on Sun, 2020-07-12 15:53. Section: Daily Dispatches

11:56a ET Sunday, July 12, 2020

Dear Friend of GATA and Gold:

Surreptitious intervention in the gold market by the U.S. government is the target of legislation introduced in the House of Representatives by Rep. Alex X. Mooney, R-West Virginia.

In a letter to House colleagues seeking support for his Gold Reserve Transparency Act, H.R. 2559, Mooney writes: "Because there are concerns the U.S. Treasury may have sold, swapped, leased, or otherwise placed encumbrances upon some of America's gold, H.R. 2559 also requires a full accounting of any and all sales, purchases, disbursements, or receipts; a full accounting of any and all encumbrances, including due to lease, swap, or similar transactions in existence or entered into in the past 15 years; and an analysis of the sufficiency of the measures taken to ensure the physical security of such reserves."

Information about the bill is posted at Congress' internet site here:

https://www.congress.gov/bill/116th-congress/house-bill/2559

Mooney also has introduced legislation to protect Americans against the Federal Reserve's steady devaluation of the dollar -- legislation to forbid federal taxation on the sale of gold, silver, platinum, and palladium coins.

In a letter to colleagues seeking support for his Monetary Metals Tax Removal Act, H.R. 1089, Mooney writes: "The Internal Revenue Service does not let taxpayers deduct the staggering capital losses they suffer when holding Federal Reserve Notes over time, so it is unfair to assess a capital gains tax when citizens hold gold and silver to protect them from the Fed's policy of currency devaluation."

Information about the bill is posted at Congress' internet site here:

https://www.congress.gov/bill/116th-congress/house-bill/1089

Americans who seek transparency in the gold market and favor allowing the public to protect itself with the monetary metals against currency devaluation can alert their members of Congress to Mooney's legislation.

The text of his letters to colleagues about the bills is appended.

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Letter in support of the Gold Reserve Transparency Act

Dear Colleague:

I have introduced the Gold Reserve Transparency Act (H.R. 2559), and I hope you will agree to co-sponsor.

H.R. 2559 calls for the first audit of United States gold reserves since the Eisenhower administration. It's surprising that we've permitted this total lack of oversight.

H.R. 2559 directs the Comptroller of the United States to conduct a "full assay, inventory, and audit of all gold reserves including any gold in 'deep storage,' of the United States at the place or places where such reserves are kept."

Furthermore, because there are concerns the U.S. Treasury may have sold, swapped, leased, or otherwise placed encumbrances upon some of America's gold, H.R. 2559 also requires a full accounting of any and all sales, purchases, disbursements, or receipts; a full accounting of any and all encumbrances, including due to lease, swap, or similar transactions presently in existence or entered into in the past 15 years; and an analysis of the sufficiency of the measures taken to ensure the physical security of such reserves.

Ensuring we have sound money in America is more important today than ever before.

The purchasing power of our currency has fallen some 96% since Congress chartered the privately owned Federal Reserve System in 1913, with an acceleration in the rate of decline occurring since the early 1970s when the final link to gold was severed.

At the same time, Russia and China are accumulating physical gold at a rate that experts believe could soon threaten the financial dominance of the United States and, by extension, national security.

Private gold holdings in precious metals depositories are routinely audited, yet the U.S. Treasury has not permitted an audit, assay, and inventory of America's gold reserves since 1953.

The Gold Reserve Transparency Act (H.R. 2559) helps restore confidence in the stewardship of one of America's most valuable financial assets, and I request that you co-sponsor the bill.

Sincerely,

Alex X. Mooney
Member of Congress

Letter in support of the Monetary Metals Tax Removal Act

Dear Colleague:

I have introduced the Monetary Metals Tax Removal Act (H.R. 1089), and I hope you will agree to co-sponsor.

H.R. 1089 simply ends federal income taxation of gold and silver coins and bullion.

As you know, the Federal Reserve has repeatedly articulated an "inflation targeting" policy which seeks deliberately to devalue the unbacked Federal Reserve Note at a specific rate per year.

Indeed, the purchasing power of our currency has fallen some 96% since Congress passed the Federal Reserve Act in 1913, with an acceleration in the rate of decline occurring since the early 1970s when the final link to gold was severed. Prior to the Fed's creation, there was little to no inflation for over 100 years.

Acting unilaterally, the Internal Revenue Service has placed gold and silver in the same "collectibles" category as artwork, Beanie Babies, and baseball cards, a classification that subjects the monetary metals to a discriminatorily high long-term capital gains tax rate of 28%.

Furthermore, the U.S. Mint continuously mints coins of gold, silver, platinum, and palladium and gives each of these coins a legal tender value denominated in U.S. dollars. This formal status as U.S. money further underscores the inappropriate nature of IRS income tax treatment.

The Fed policy of creating inflation and monetizing debt has the effect of driving up the cost of virtually everything our constituents consume, while simultaneously reducing the real value of the money in their pockets and savings accounts.

A tax-neutral measure, H.R. 1089 states that "no gain or loss shall be recognized on the sale or exchange of (1) gold, silver, platinum, or palladium coins minted and issued by the Secretary at any time or (2), refined gold or silver bullion, coins, bars, rounds, or ingots which are valued primarily based on their metal content and not their form."

Finally, the IRS does not let taxpayers deduct the staggering capital losses they suffer when holding Federal Reserve Notes over time, so it is unfair to assess a capital gains tax when citizens hold gold and silver to protect them from the Fed's policy of currency devaluation.

The Monetary Metals Tax Removal Act (H.R. 1089) ends the inappropriate taxation on the only money mentioned in the U.S. Constitution, and I request that you co-sponsor the bill.

Sincerely,

Alex X. Mooney
Member of Congress

http://gata.org/node/20280
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Buck

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does anyone here pay Federal Tax on the physical they buy?

wtf...someone else now gets a break, oh yeah, it's the Paper Traders...

what a crock...
 

SongSungAU

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does anyone here pay Federal Tax on the physical they buy?

wtf...someone else now gets a break, oh yeah, it's the Paper Traders...

what a crock...
Everyone is supposed to. It's called capital gains... "a tax is imposed when individuals part with an asset and make capital gains on it"

I would love for the bill to pass. It would remove the record-keeping currently required. Each year, come tax time, it wouldn't matter what price I paid for a coin and what price I sold it for... no tax consequence.

What is not to like about that bill?
 

SongSungAU

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D-FENZ

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I would love for the bill to pass. It would remove the record-keeping currently required.
Anyone who's purchased metals at a LCD for cash on the barrel head in dribs, drabs and tranches over the course of 20 years- some in fungible pre-'65 coins, others in bullion of the same hallmark and size- throw in a couple of GSR swaps... LIFO / FIFO accounting or whatever- and well- fuggetaboutit. It would take a couple of high-end server farms to figure out your cost basis and you would still end up with as many answers as the times you've tried- even if you had all the receipts.

But why would anyone tell anyone about it anyway? If you're going to do that you may as well just trade the paper.
 

Buck

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Everyone is supposed to. It's called capital gains... "a tax is imposed when individuals part with an asset and make capital gains on it"

I would love for the bill to pass. It would remove the record-keeping currently required. Each year, come tax time, it wouldn't matter what price I paid for a coin and what price I sold it for... no tax consequence.

What is not to like about that bill?
but, i'm not parting with an asset, i'm parting with money. i'm using it to buy worthless paper at an exchange rate that's negotiable...which item is taxable?