© bpi.com/KJNNot Money
LB 1317 is the fourth major sound money bill to become law this year, as state lawmakers across the nation scramble to protect the public from the ravages of inflation and runaway federal debt.
Under the new Nebraska law, any "gains" or "losses" on precious metal sales reported on federal income tax returns are backed out, thereby removing them from the calculation of a Nebraska taxpayer's adjusted gross income (AGI).
Supported by the Sound Money Defense League, Money Metals Exchange, and in-state advocates, Nebraska's sound money measure passed out of the unicameral legislature's Revenue committee unanimously before being amended into a larger bill. Sponsor Sen. Ben Hansen said upon news of the formal enactment of his legislation:
"Gold and silver are the only forms of currency mentioned in our Constitution and with that comes the people's ability to use it as such without penalty from the government. Saving, and using, gold and silver is our right and one of the only checks and balances to our federal government's unending devaluation of our paper currency."Taxpayers often realize 'gains' when converting the monetary metals back into Federal Reserve notes even though the 'gains' do not reflect an increase in real value but rather reflect the currency's ongoing devaluation. Despite the lack of "real" gains, the Internal Revenue Service imposes capital gains taxes on such transactions. Nebraska has now opted out at the state level, declining to carry the IRS's position into the definition of Nebraska income.
Comment: Wars are not won on desperation. There is value in the phrase 'quit while you can'.