Currently, there are 15 states that have partial, or complete exemption of taxes for the purchase of gold and silver bullion, and on May 23, the state of Texas looks to move into the latter portion of this list as it awaits Gov. Perry’s signature on a new bill that will eliminate all taxes imposed on sales of gold and silver.
Under current state law, the 6.25 percent sales tax applies to purchases of gold and silver coins under $1,000. But House Bill 78, which was passed by the Texas Senate on Tuesday and awaits Gov. Rick Perry’s signature, eliminates the sales tax, “making it more economically feasible for lower and middle income Texans,” the bill’s analysis reads. – blog.chron.com
The timing of this bill should be a boost to the already booming market of physical gold and silver purchases that have accelerated since the attack on paper metals in the commodities market. Since the beginning of April, precious metal retailers have experienced a massive shortage on products as consumers recognize the fragility of the dollar and the global banking system, especially after the confiscations that took place two months ago in Cyprus.
Texas’ move to expedite gold and silver commerce to their citizens may also be tied to the growing movement towards possible succession, that has been simmering in the Lone Star state for decades. And while the Texas constitution does not provide an amendment for succession, several state ratification documents for the Constitution in 1788 implied that when the Federal government had strayed from lawful, constitutional rule, the people (states) had the right and power to resume control over their own dominions.
When New York delegates met on July 26, 1788, their ratification document read, “That the Powers of Government may be resumed by the People, whensoever it shall become necessary to their Happiness; that every Power, Jurisdiction and right which is not by the said Constitution clearly delegated to the Congress of the United States, or the departments of the government thereof, remains to the People of the several States, or to their respective State Governments to whom they may have granted the same.” – Columbia Tribune
And interestingly enough, the Constitutional use of real and sound money was a power given to Congress by the states, and predicated on the use of gold and silver as the primary money designated for the Republic. This power was given away by Congress to a private entity in 1913, and since that time, the power over money has been systematically removed from the people.
Over the past several years since the credit crisis of 2007/2008, many states have passed legislation to allow commerce to transact through the use of physical gold and silver, and are seeking to find easier ways to get this source of money to the people. By Texas expanding their tax policy, and eliminating sales taxes on the purchases of gold and silver, the sphere of monetary control by the Federal Reserve and Treasury weakens, and the public creates a potential solution in the instance of a dollar collapse.