Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19
Gold Price Gann Angle Update - 10th July 19
Crude Oil Prices and the 2019 Hurricane Season - 10th July 19
Can Gold Recover from Friday’s Strong Payrolls Hit? - 10th July 19
Netflix’s Worst Nightmare Has Come True - 10th July 19
LIMITLESS - Improving Cognitive Function and Fighting Brain Ageing Right Now! - 10th July 19
US Dollar Strength Will Drive Markets Higher - 10th July 19
Government-Pumped Student Loan Bubble Sets Up Next Financial Crisis - 10th July 19
Stock Market SPX 3000 Dream is Pushed Away: Pullback of 5-10% is Coming - 10th July 19
July 2019 GBPUSD Market Update and Outlook - 10th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Renewed Interest in a Tax on Stocks Proves Metals Are the Place to Be

Commodities / Gold and Silver 2010 Feb 23, 2010 - 06:16 PM GMT

By: Dr_Jeff_Lewis

Commodities

In an unprecedented modern move, the Federal government is considering a new investment tax as a way of paying for a huge annual deficit.  The investment tax would cost investors .25% on purchases of stocks and exchange-traded funds outside of retirement accounts and would generate an estimated $90 – $100 billion in annual income for the US Treasury.


Nothing is Safe

If there is anything that the Federal Government has proven in the past two years, and even many years prior, no amount of private property is safe from the power-hungry arm of government.  SEC rules have already declared that the government has the right to seize investors assets in time of intense economic hardship, and this new bill drafted by Congress opens the door for the government to steal parts of your wealth via taxation, if only penny by penny.  Although the new .25% tax would generally have little effect on investor wealth, it opens the door for confiscation of larger quantities of your investment dollars via taxation.

Metals and Taxation

Though capital gains taxes on gold and silver are hardly favorable for investors since metals are taxed like collectables, perhaps metals investors are getting a better deal after all.  The new taxation scheme is garnering some attention and traction among lawmakers, with 27 members of the House now co-sponsoring the bill.  Lawmakers are increasingly interested after learning that a similar scheme in the United Kingdom generates $30 billion annually, and it has met very few complaints.  However, passing such bill in this political climate seems difficult, if not impossible, but tax hikes are eventual should the government continue to spend like there is no tomorrow.

Gold and Silver Safety

Luckily, should an investment transaction tax be enacted, gold and silver in the form of coins and rounds will remain untaxed, while metals trading on the open market in futures contracts would be taxed.  This presents an interesting opportunity for investors to begin revving up their purchases of physical gold and silver before a tax of this magnitude has even come to a vote.  As we all know, new taxes can appear in a matter of weeks, and as the budget deficit grows, so does the incentive for lawmakers to pass a new tax, especially on the Wall Street so many politicians condemn.

A New Discussion

It should be settled that no investment, large or small, is ever out of the jurisdiction or interest of the Federal Government, and all vehicles are open to all new forms of taxation.  With Congress considering a slew of anti-investing bills that can seize your assets, create forced deposits into new “R-bonds” (Treasury bonds rebranded for retirement accounts), and now even tax each and every investment you make, it’s time to try something new. 

With all these laws on the table, and the investing public demanding safety, investors can be sure that the few instruments that will truly protect their wealth is physical gold and silver.  Nothing else can protect your assets from inflation or taxation.

By Dr. Jeff Lewis

Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com and Hard-Money-Newsletter-Review.com

Copyright © 2010 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules