New Jersey Assembly Votes Unanimously to End Sales Tax on Precious Metals
Bullion.Directory precious metals news 04 July, 2023
By Jp Cortez
Assistant Director of Sound Money Defense League
This achievement is the result of several years of effort from the Sound Money Defense League, Money Metals Exchange, and in-state supporters.
Taxing precious metals is an outdated practice in the United States, with 43 states having already abandoned it. Mississippi most recently ended this tax in their state, with, Alabama, Virginia, and Tennessee also having ended this practice in the last few years. It is time for New Jersey to follow suit and remove this burden on its citizens.
Sales tax applied to purchases of sound money is inappropriate, as precious metals are held for resale, not “consumption.”
Studies have shown that taxing precious metals is an inefficient revenue collection method. All three of New Jersey’s neighboring states have recognized this and exempted gold and silver from sales taxes. New Jersey should do the same to protect its businesses and prevent economic activity from flowing to neighboring states.
Exempting precious metals from sales taxes aligns the Garden State with the United States Constitution, which mentions gold and silver exclusively as money.
By passing Assembly Bill A5294, New Jersey can raise its ranking in the Sound Money Index, improve economic competitiveness, and become a champion of sound money principles. The Sound Money Defense League commends the Assembly members for their unanimous support.
The bill now moves to the state Senate, where we urge Senators to recognize the overwhelming grassroots support and seize the opportunity to promote sound money.
Related bills to restore sound, constitutional money have also been introduced this year in Alaska, Iowa, West Virginia, South Carolina, Maine, Missouri, Minnesota, Tennessee, Montana, Idaho, Wyoming, Kansas, and more.
Jp Cortez
Jp Cortez is the Policy Director of the Sound Money Defense League, an organization working to bring back gold and silver as America’s constitutional money.
A graduate of Auburn University, graduate of Mises University, and a resident of Charlotte, North Carolina, Jp writes for a number of major financial websites.
This article was originally published here
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