Over 6 Million Missourians Could Soon Pay Taxes in Gold – But Is It a Good Idea?

A groundbreaking amendment has been reportedly approved by Missouri's state legislature allowing residents to settle tax obligations using gold and silver, thereby marking a significant departure from traditional monetary policy and positioning the state at the forefront of alternative currency adoption in United States.

The development, part of a broader Finance Bill, would offer over six million state residents an option to pay taxes and purchase other goods in gold.

The law will mandate the state government to accept electronic versions of the precious metals for tax payments. However, private businesses can deny payments in gold in exchange for goods, which is a deviation from an earlier version of the bill that would have required these private entities to accept gold. The modification related to private businesses was made after significant pushback from Missouri's business community.

The bill will now go to Governor Mike Kehoe, who will ultimately make a final decision on whether to pass the bill as law.

Missouri isn't alone when it comes to prioritising laws that make silver and gold legal tender for tax and goods payments. Utah lawmakers passed a bill earlier this year to establish a precious metals-backed electronic payment platform. However, the bill was vetoed by Governor Spencer Cox. Even in Louisiana, a similar bill was proposed but has not yet passed.

The Florida state Senate also passed a bill back to the House of Representatives to make silver and gold legal tender, which has garnered support from Governor Ron DeSantis.

State Senator Bill Eigel reportedly said that the 'mistreatment of the US dollar by Democrat Joe Biden up in Washington, DC makes the urgency of passing a bill like the gold and silver bill even more pressing.'

Is it a Good Idea to Pay Taxes in Gold?

State Representative Kemp Strickler told The Star that even if the Missouri bill is passed, lawmakers are still figuring out how to implement the payments.

Meanwhile, State Senator John Rizzo had raised a valid question earlier. 'So when I go to a gas station and buy a Coke, a 20-ounce Coke, and I'd say, you know, here's my gold... Are they gonna give me back money in gold,' he had asked.

Precious metals like gold are tangible investment assets that appreciate in value over time and share an inverse correlation with stock markets. Gold's scarcity, exchangeability, and universal demand drive prices up, proving an effective investment instrument against high inflation and economic volatility.

Gold's value also doesn't depreciate compared with fiat currencies like the US dollar.

Hence, it might be a good idea to retain your gold investments as long as possible and make payments in precious metals only when necessary, for instance, when you don't have the equivalent amount of cash to cover the liabilities.

Gold prices surged to £2,585 ($3,434) per ounce at the height of the recent US tariff turmoil, which wiped out trillions of dollars from stock markets. The precious metal has soared in almost all major recessions in the last half-century.

Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn't indicate future returns.