Monday , June 18 2018

Potpourri

Summary:
==> In the latest Contra Krugman, I’m a hot little tamale when it comes to Big Spending Republicans. ==> I am quoted in this Daily Caller article about Scott Pruitt’s claims that global warming could have benefits. ==> The Idaho State House has passed a bill that would exempt capital gains on gold or silver from state income taxes. However, there are some claims in this enthusiastic blog post that don’t sound right to me. Do people know more about this? For example, consider this introductory paragraph: “The House of Delegates Revenue and Taxation Committee Committee introduced House Bill 449 (H449) on Jan. 30. The legislation would exclude gains and/or losses on the sale of precious metals coins and bullion reported for federal tax purposes from an Idaho

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==> In the latest Contra Krugman, I’m a hot little tamale when it comes to Big Spending Republicans.

==> I am quoted in this Daily Caller article about Scott Pruitt’s claims that global warming could have benefits.

==> The Idaho State House has passed a bill that would exempt capital gains on gold or silver from state income taxes. However, there are some claims in this enthusiastic blog post that don’t sound right to me. Do people know more about this?

For example, consider this introductory paragraph: “The House of Delegates Revenue and Taxation Committee Committee introduced House Bill 449 (H449) on Jan. 30. The legislation would exclude gains and/or losses on the sale of precious metals coins and bullion reported for federal tax purposes from an Idaho taxpayer’s taxable income. In effect, H449 would allow Idaho taxpayers to offset federal capital gains/losses reported to the IRS on their state taxes.”

It’s that last part (in bold) that doesn’t sound right to me. It’s one thing to say that the State of Idaho won’t charge you income tax on your capital gain if the market value of your gold coins goes up from when you buy/sell them, but that’s not the same thing as saying you can offset the capital gains tax you pay to the federal government, right? And surely the bill just means the Idaho government is doing the former?

Also, this didn’t sound right to me: “H449 would be a revenue neutral policy over the long run. That’s because both precious metals gains and losses are backed out of the calculation of taxable income for Idahoans.”

Is the author saying he expects gold and silver to have a constant price (on average) in terms of dollars over the next century? In that case, what’s the harm in using fiat notes as money?

To be clear, I’m totally on board with H449. Indeed, it’s precisely because I want to write on this, that I’m pausing to make sure I understand the situation, and this particular write-up doesn’t match up with my prior views.

Robert Murphy
Christian, Austrian economist, and libertarian theorist. Research Prof at Texas Tech and author of *Choice*. Paul Krugman's worst nightmare.

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