Gold & Silver Taxes Dropped in 45 States, 13 End Capital Gains: Why It ‘Scares’ the Fed – Jp Cortez

Gold & Silver Taxes Dropped in 45 States, 13 End Capital Gains: Why It ‘Scares’ the Fed – Jp Cortez

hey everyone I’m Jeremy Safford this is Kito news remember to subscribe for the latest insights now today we’re exploring a significant shift in US Financial policy the read-option of gold and silver as legal tender now this initiative isn’t just about diversifying Investments it’s deeply rooted in the US Constitution which originally defined money specifically as gold and silver coins now States Across the Nation are now stepping up from eliminating taxes on these precious metals to reinforcing their use in Daily transactions directly challenging the dominance of paper currency and the federal reserve’s control over our economic stability now joining us to discuss this constitutional Revival and its implications for inflation and your finances of course is JP Cortez he’s the executive director of sound money Defense League a bipartisan organization dedicated to promoting sound money principles JP welcome to the show hey Jeremy thank you so much for having me on it’s good to be here okay JP let’s start with the basics here explain to our audience why stable sound money is critical for economic stability and how Federal policies and Federal Reserve actions impact this stability sure of course so the sound money has two pretty simple value propositions uh the first is that sound money provides people the chance to be able to save and plan in a currency that they know will hold value over the long term and that’s crucially important uh the the building of infrastructure and they be able to plan decades into the future and make plans to uh that that spur and develop Business Development um all of that is is based and rooted in having a sound currency so being able to grow as a society comes from having a stable money the second tenant to sound money as the second part of the value proposition is its ability to constrain a government that would otherwise spend or grow recklessly right the um the uh America’s in America’s case the the central banks the Federal Reserves ability to print money oftentimes gets used for things that people personally probably wouldn’t pay for and in many cases wouldn’t support um these are wasteful domestic projects these are in many cases Wars of choice all around the world so sound money constrains a government that would otherwise uh do bad things with the power afforded to the of money um so like you were saying right the the Federal Reserve has so much power and so much influence over money and the issue isn’t the issue is that the stewards of America’s money have have been doing a very poor job of that at least since 1971 when uh Nixon cut the uh officially closed the gold window cutting the last tie to the gold standard before that 1933 uh the establishment of the income tax and then the establish of the Federal Reserve in 1913 so for over 100 years now America has been systematically destroying its money replacing the gold standard with a debt standard and that unsurprisingly has seen has caused an explosion of government an explosion of government spending an explosion of government deficits and we’re seeing the results of that now right people are having a hard time affording housing and food and Medicine uh and and that’s not that’s not an act of God inflation is a policy choice and to the extent that it’s a policy Choice it can be changed and on the state level it can be mitigated right JP critics argue that focusing too much on sound money could lead to restrictive monetary policies that might hinder economic growth how do you respond to concerns that too rigid of an approach might stifle economic flexibility here I am open to the idea that the financial minations that exist today wouldn’t uh wouldn’t be available to us uh in in the case of a gold standard you wouldn’t be able to QE your way um into uh spurring consumption or spending that is true uh so there are trade-offs to be sure between a system the Fiat system like the one that exists today and a a gold standard rooted in a hard currency um but I would say that to us the to me the trade-off is clear right the the idea that private currencies can’t compete um is a lie there’s there’s a lot of history and scholarship on that front and the idea that the Federal Reserve System since its Creation in 1913 has been a a a boon to America as far as being able to defend against or prevent financial crisis I think is an obvious lie right the 1913 was the establishment of the Federal Reserve it’s not a coincidence that 15 16 years later the world saw the greatest depression it had ever seen and so on and so forth we’ve seen uh episodes of stagflation and recessions and depressions since then so so the idea that the Federal Reserve somehow uh protects or insulates the financial system better than a gold standard would I think uh doesn’t hold water and that is even before you get into the considerations about how a gold standard would constrain a government from uh from spending and funding and fighting in Wars all across the country in places many of us never heard of um so the both financially and ethically morally constitutionally uh the gold standard I think is is a hands down preferable uh system of money to what we have now which is a a PhD debt standard okay so let’s break this down a little bit I mean you’ve mentioned that a lot of the responsibility for our current Financial instability lies with the fed the federal actions obviously yet states are taking significant steps to reintroduce gold and silver as legal tender so what can States realistically achieve in this area without Federal cooperation it’s a great question and I think until recently it’s a question a lot of States never really considered but the truth is more than any other reason the reason that gold and silver today are not currently workable as money is because of the state and federal taxes that are levied against them in some states here in the United States when you go into a store to buy precious metals uh whether coin bar or round whether minted in the US or privately minted you’re going to get hit with a sales tax there are still five states in the country here in the United States that will charge you for exchanging one form of money for another and they’re charging the sales tax on that Exchange in many states you’re charged a capital gains tax when you sell the metal if you enjoy a gain and that is also true on the federal level so in some cases gold and silver are triple taxed here in the United States depending on what jurisdiction you’re in and that friction is what keeps gold and silver from being used as money it’s not because gold and silver aren’t money it’s not that the gold standard died it it was killed it was Shackled by dis incentives and regulations that make it unworkable as money so to that end states are proactively and actively passing legislation to end a lot of these taxes because that’s in our in our estimation the biggest impediment to use as money for gold and silver uh 45 States now have ended this tax on gold and silver purchases the the sales tax uh 133 states have ended um the capital gains tax so when you sell uh if you enjoy a gain uh you wouldn’t be able you would not be taxed on that gain and uh and then uh it’s not just that states are also being proactive about uh reincorporating sound money gold and silver into their own Financial plans uh states are actively finding ways to invest in physical gold and silver they’re empow we’re passing legislation to empower state treasurers uh to invest in physical uh gold and silver stored within the state or in contiguous states if they choose um and so that’s uh it’s it’s a big part of of what we’re doing here it’s it’s not just taxes though taxes are a big part of of of the the friction that exists uh States themselves individuals in these states and then even on the federal level in legislation is being introduced to allow to before we get into the the state taxes which I want to get into the legislation a little bit and really unpack it but you know given the vast power of the fed the Federal Reserve and obviously the central banking system how effective can state level initiatives like this truly be in influencing National monetary policy is it working I think we’re seeing it working right now and I’m happy to say that so for example we have a great example here just recently uh in the last two weeks uh both the state of Nebraska and the state of Alabama pass legislation exempting capital gains from gold and silver on the state level um and that is part of a movement other states have recently done that same thing and in in response to that or at least on the heels of that uh Congressman Alex Mooney US representative from West Virginia recently reintroduced legislation to end this tax any uh it ends all federal income taxation on golden silver coins and bullion in the entire country so this is a it’s a it’s a movement that definitely started on the state level but we’re seeing it percolate all the way up to the federal level and importantly we’re seeing it percolate down to individuals these these laws that we’re passing the the removal of the disincentives is what allows people to reopt a personal gold standard and it also I think breeds or incentivizes um or encourages innovation in money right and we’re seeing that we’re seeing fractional gold for example uh appear in a way that historically hasn’t been seen before we’re seeing digital gold in crypto we’re seeing a revolution in money and by removing all of the the Brier and the thistle that that keeps people from uh using gold and silver as money oh uh collateral lending being another great example of a monetary Innovation for example uh money Metals collateral group uh the money Metals exchange is the a the sound money Defense League is a project of money medals exchange and they for example are offering this collateral Lending Group where you can tap into the equity of the of your medals without having to sell it so the the removal of all of the disincentives and all of the the the bureaucracy and all of the impediments that stand in the way of people using gold and silver as money we’re going State the state removing those and I’m yeah I think I’m very excited and I’m very bullish because I’m seeing it work this is a a Bonafide win for uh lovers of Liberty and lovers of gold and silver that right the state level on the federal level gold and silver are making a a real comeback here in in 2024 absolutely huge headlines and I mean as you mentioned with States like Alabama and Nebraska passing laws to remove capital gain taxes on precious metals but I’m curious how do you foresee this affecting everyday Financial transactions in the broader US economy here well I think so long as the the federal tax still exists that’s going to be the biggest impediment so states can do their part and they have been and they will continue to do so but ultimately the biggest the biggest tax issue is going to be the tax on the federal level so removing that would be the the the biggest priority One um another thing I think that uh is something gold and silver innovators are going to have to face is gresham’s law right even if you could use gold and silver as money would you necessarily want to so long as people are willing to accept a devaluing US dollar or US Federal Reserve Note why would I spend my actual gold my good money to pay debts when I can use this other dying money to do it so I think that’s something that uh the the entrepreneurs that are in this space that are devoting a lot of brain power and money to Innovations in money are going to have to contend with but I think the that sort of innovation is is what we want and need and those questions have to be answered by by the people that are creating money and how can money best be used what does that look like on a personal level it obviously has to be convenient it it has to be accessible and easy for many people and I think the market ultimately is going to decide which one of these structures which one of these coins which one of these uh digital platforms or which one of these physical Brands ultimately will win out and the the market will decide that the same way the market decided gold and silver are the best money right JP some economists worry that reintroduced gold and silver as money could lead to increased Market volatility and a bifurcated currency system how do you address those concerns about you know potential Financial instability here I think it makes a lot of sense for the Federal Reserve to be scared um I think that no matter no matter what they’re always going to have something to come back with and and there cause for concern is legitimate the power to print and control money is a grand and awesome power and the US government has has has had a monopoly on that power um since 1913 at least so the I think the the powers that be will will always have a reason as to why uh gold and silver shouldn’t be money or why technocrats should be the ones uh running regressions to determine what the optimal uh interest rate is or what the optimal price of money is um in in the case of competing monies I think that that’s ultimately how we decide or determine how the market determines what makes the best money to the extent that reintroducing gold and silver back into the economy introduces competition to the US dollar I say that’s a good thing and it should be encouraged because even if the dollar does end up winning some competition might encourage dollar managers to be better stewards of that dollar to not use it to to harm their enemies and to help their friends to not weaponize it as a political cudgel because that’s what the dollar has been used for for many decades and we’re seeing the effects of that in very real ways now we’re seeing bricks countries talking about establishing currencies in gold and silver we’re seeing uh the US choosing to seize Russian assets and so countries all over the world decide are are starting to think to themselves out loud hey maybe the US dollar as a f as a as a world Reserve currency is a little biased towards the US and maybe there should be something a little more impartial the the weap the weaponization of the dollar has has caused has been the the primary cause of its decline and so gold and silver being reintroduced and and hopefully reintroducing some fiscal Financial discipline would be a good thing yeah well said uh okay as you mentioned we’ve seen quite the year for gold obviously we had these all-time highs and we’ve seen a trend where consumers are increasingly purchasing gold from retailers like Costco and even considering foreign minted coins like the Canadian Maples so how does the current legislation address or fail to address these non-traditional and foreign products in most cases in the legislation that we passed regarding the sales tax bills like that are written in to Define it the bill exempts gold silver in many cases platinum and Palladium as well uh coins bars and rounds the the the bills then go to Define what that means so typically the bills will Define this as uh the precious metals that are minted uh refined and valued primarily by their value as precious metals not by their value as a collectible or for any Rarity purposes um so in in the in the state in the in the case of Costco or even other other dealers both online and in store um these sales tax exemptions that we’re passing would cover almost everything uh whether it’s minted privately or minted by a state government uh whether it’s three9 or 49es um whether it’s junk silver in many cases the 40% stuff uh the 90% stuff the the legislation that we’re passing in includes all of this because the idea is especially in the case of of junk silver is an obvious example where the Purity is very low but the these are are items that are very workable as money the as small barter pieces dimes quarters um so it’s it’s imperative maybe even more so than than the larger uh for example 1 o gold bar which has less function as a money a 200 or excuse me a $2,400 bill is less usable than a nickel or so um so it’s very important that all of those items be exempt from the sales tax and to not exclude any any investor or any saver for choosing to save in uh in Phil harmonics versus Maple Leafs versus kangaroos versus a privately minted round um so so the the bills make sure to capture all of that good no that’s really good to hear and I’m sure our audience will be happy to hear that too now looking ahead how do you envision the role of gold and silver evolving in the US monetary system I mean are there plans or even discussions at the federal level that could further support this or maybe hinder it so the federal bill that was just reintroduced I think is a great example of gaining traction sound money gaining traction on the federal level um this is also just one of several efforts that have appeared on the federal level over the last couple years uh many of which introduced by uh representa or yeah Congressman Alex money uh these are bills that would uh reestablish a gold standard these are bills that call for a full accounting of all US Gold Holdings any incumbrances uh that might be placed upon them any swaps or leases or derivatives any any sort of anything that’s been placed on America’s gold uh this would call for a full accounting of of all of that so on the federal level there has been uh talk over the years and I think this started back Ron Paul before Congressman money um the I I don’t expect I’m sad to say I don’t necessarily expect the Federal Reserve to reopt the gold standard uh tomorrow like uh like we were saying earlier the um the power to print money is is an extreme and great power and I don’t think that they would uh easily uh give up that power but I think and and there is a a reality to the federal level being very difficult to pass legislation um it’s it’s admittedly closer to a gridlock on the federal level um and that makes it hard to have hearings or or to pass legislations but as an educ as an educational tool and as a um a tool that gets people talking I think that that serves a huge purpose and that ultimately bolsters arguments that we’re making in the state level um you know so we’re not necessarily asking politicians to come out and do something crazy this is something that many states around the country have adopted and something that’s being done on the federal level and I think ultimately the the approval though gold and silver do not need approval from the government to be money the approval of gold and silver and the treatment of gold and silver as money I think psychologically helps a lot of people reestablish or reaffirm that gold and silver are indeed money right uh the the idea of gold and silver as money at least in the western world has sort of completely escaped the the the American um and so to reintroduce some of those ideas um I think is is a huge a huge help to what we’re doing here and ultimately I think the the the individuals in the state the the Grassroots participation is what gets these State projects across the Finish Line um so it I think it all um it all perpetuates itself it all um and it all is better and good for the promotion of sound money on an individual and on a national level okay so JP before I let you go because we’re almost out of time here uh talk to me a little bit about what’s next for you I mean you’re what’s next on the fight here you’ve already passed this in a couple of States what’s what’s happening next well Jeremy like I said you know we’ve got five states left in the country that still charge sales tax um those states are Hawaii New Mexico New Jersey Vermont and Maine um and those states are at the top of our list uh those states have Targets on them of those five states we’ve got four States four of those States had that have already actively introduced legislation um to end this tax so we’re making a lot of progress the capital gains issue on the state level is something that’s picked up a lot of speed uh now that the sales tax issue has almost been completely done away with um so that that is picking up a lot of momentum States all over the country are introducing that this year we had I think 26 or 27 states that were considering almost more than 60 pieces of legislation um that are all pro sound money legislation um in Utah earlier this year we passed legislation uh that empowers the state treasurer to invest in physical Golds so this year for for the last four or five years I’ve been happy to say at the end of the last four or five years I’ve said each time wow this is as successful a sound money year as state legislatures have ever seen and that started when we passed our first bill and then a few more States introduced and then a few more States passed and each year it’s a cumulative thing and we’re seeing more and more states do this this year we’re already up to five states that have passed um bills on this uh there are several pieces of legislation across the country that are still active still actively being considered in Alaska and New Jersey um so so I am I’m very bullish on gold and silver as sound money I’m very bullish on the the American reopt maybe not on the federal level but on on a personal and individual level and I’m bullish because I’m seeing it happen nicely said JP Cortez executive director of The Sound money Defense League joining us today to provide his Insight hey JP thanks for this we’ll get you on again so you can give our audience a little bit of a lay of the land and an update on these policies in the future thank you looking forward to it thank you Jeremy thanks so much I’m Jeremy saffin for all of us here at Kito news thank you for tuning in we got lots of great content coming your way so feel free to comment on the videos that you’d like to see and what you’d like to hear from our show we’ll see you next time [Music] [Music]

Jeremy Szafron, Anchor at Kitco News, interviews Jp Cortez, Executive Director of the Sound Money Defense League, to discuss the transformative steps states across the U.S. are taking to remonetize gold and silver. In this interview, Cortez explains how states are eliminating taxes on precious metals to restore them as viable money and combat inflation. Cortez also dives into federal initiatives aimed at solidifying the constitutional stance that treats gold and silver not just as assets but as legal tender. This interview covers the potential impacts on the economy, the philosophy behind sound money, and the practical implications for everyday Americans.

Follow Jeremy Szafron on X: @JeremySzafron (https://twitter.com/JeremySzafron)
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Follow Jp Cortez X: @JpCortez27 (https://twitter.com/JpCortez27)

00:00 Introduction
01:30 The Importance of Sound Money
03:30 State Legislation on Precious Metals
06:00 Impact on Individual Finances:
09:00 Federal Policies and Sound Money
12:00 Addressing Common Criticisms
15:00 The Role of Gold and Silver Today
18:00 Practical Challenges and Solutions
22:00 Conclusion

#SoundMoney #GoldSilverMoney #FinancialFreedom #InvestInPreciousMetals #TaxReform #EconomicStability #goldusa #MoneyMetals #InflationHedge #GoldStandard #SilverInvesting #MonetaryPolicy #USConstitution #EconomicReform #ProtectWealth

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