schiffgold.com / BY SCHIFFGOLD / MARCH 20, 2017
State Senator from Maine Eric Brakey recently introduced Senate Bill 664, which attempts to provide sales tax exemption for precious metals purchases of “gold and silver coins and bullion.” Passing Brakey’s bill would align Maine with many other states that think taxing precious metals is bad business and discourages consumers from protecting their wealth.
The current attitudes towards taxing precious metals comes from whether they’re perceived as a regular consumer good like Starbucks coffee, or a type of investment or currency.
Exempting gold and silver from sales or consumption taxes is perfectly logical, given that precious metals aren’t typically “consumed” like other products. Instead, they’re used to move wealth from a volatile, government-backed fiat currency into real money.