After Utah, Wisconsin, Nebraska, and Kentucky, Alabama became the fifth state to have passed legislation supporting sound money by abolishing income taxes on gold and silver.
Today, Alabama took a significant step toward promoting sound money concepts when Governor Kay Ivey signed a law eliminating all income taxes on capital gains from the sale of gold and silver.
With this action, Alabama becomes one of the increasing number of states that place a high priority on shielding their residents from the damaging effects of rising national debt, depreciating currency, and inflation.
Following the enactment of Senate Bill 297, Alabama will become the thirteenth state in the union to waive capital gains taxes on sales of gold and silver.
According to the new law, an Alabama taxpayer’s adjusted gross income (AGI) will not include any gains or losses from the sale of precious metals as reported on federal tax returns. This act essentially protects people from harsh taxes on transactions involving constitutional forms of money.
SB 297, supported by the Sound Money Defense League, Money Metals Exchange, Senator Tim Melson, and Representative Jamie Kiel, garnered bipartisan support in the Alabama Legislature, demonstrating the broad acceptance of the significance of sound money principles during a period of explosive inflation.
During his presentation to the Senate Finance and Taxation Education Committee, Senator Melson highlighted the historical importance of gold and silver as legally recognized forms of money under the Constitution.
Melson stated, “Gold and silver have served as pillars of economic stability throughout history and are even mentioned by name in the U.S. Constitution. By eliminating taxes on transactions involving these precious metals, we affirm our commitment to upholding the principles of sound money and protecting the savings of our constituents.”
It is commonly known that “gains” from the selling of precious metals are the result of the ongoing depreciation of the US dollar rather than actual value appreciation. The Internal Revenue Service maintains that federal income taxes should be paid on these transactions, notwithstanding this fact. And by default, the majority of states find themselves adopting this stance.
The Sound Money Defense League’s executive director, Jp Cortez, emphasized the significance of Alabama taking the initiative to combat inflationary pressures. He said, “The purchasing power of people’s savings is diminished by inflation, which also jeopardizes social and economic stability. With more and more states expected to follow, Alabama is now the 13th state in the nation to opt out of this taxation structure.
This bill was also passed earlier this year in Nebraska. In recent years, identical legislation were enacted in Utah, Arizona, and Arkansas. Additionally, in 2024, income tax exemptions were examined in Iowa, Georgia, Oklahoma, Missouri, and Kansas; several of these states approved the bill in several committees and chambers.
As of 2024, Alabama is the fifth state after Utah, Wisconsin, Nebraska, and Kentucky to have passed legislation supporting sound money.
In addition, last week saw the reintroduction of the Monetary Metals Tax Neutrality Act by U.S. Congressman Alex Mooney (R-WV), which would do away with the federal capital gains tax on all gold and silver coins and bullion.
Due to the passage of additional sound money legislation in recent years, Alabama, which is now ranked 28th on the 2024 Sound Money Index, is anticipated to move up the list.
Recently, GreatGameIndia reported that, based on data from several sources, the countries with the largest gold reserves are the USA, Germany, and Italy.
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