When Utah’s new “gold standard” law went into effect at the end of May, it generated another round of national headlines similar to what happened in March when the measure passed the Utah House of Representatives.
The general press largely missed the point.
The real point is that it is a tax measure. Profits made by buying gold or silver coins for one price and selling them for a higher price would not be taxed as a capital gain in Utah. Neither would such transactions be subject to state sales tax.
It’s a great win for people who buy and sell gold and silver coins, no question about it.
About the gold standard part, though, the law says gold and silver coins issued and deemed legal tender by the federal government are to legal tender in the state.
If the coins have to be issued by the federal government and have to be deemed legal tender by that self-same government, how does this strike a note of state gold standard independence?
Well, it does say Utah will study the possibility of establishing an alternative form of legal tender within the state.