Press Release of Senator Crapo
CRAPO, REID SEEK REDUCTIONS IN PRECIOUS METALS TAX
Fair Treatment for Precious Metals Investment Act lowers capital gains rate
Contact: Susan Wheeler
Washington, DC - Those seeking to invest in gold, silver and other precious metals will receive treatment equitable with other investors, under legislation proposed by Idaho Senator Mike Crapo and Majority Leader Harry Reid. Crapo and Reid are sponsoring the Fair Treatment for Precious Metals Investment Act, which places capital gains taxes on metals more in line with other investments.
"Gold, silver, platinum and palladium investment products are not subject to the same capital gains tax treatment as equities like mutual funds," said Crapo, a member of the Senate Finance Committee with jurisdiction over tax issues. "Instead, they are treated as collectables and taxed at a rate of 28 percent. These are not collectables; they are liquid investment products with round-the-clock pricing structures and are traded on major exchanges all over the world."
Currently, precious metal bullion investment products are taxed at the disadvantaged rate of 28 percent. The rate for equities and mutual funds is 15 percent.
"We have a strong precious metals industry in Idaho and treating these precious metals products as the kind of investment products that they are will spur and strengthen the markets for these products," Crapo added.
Crapo noted that Congress already recognized the investment nature of precious metal bullion investment products when it amended the tax code to allow Individual Retirement Account (IRA) investors the opportunity to include physical precious metal investment products. Senators John Ensign (R-Nevada), Larry Craig (R-Idaho), and Ted Stevens (R-Alaska) are co-sponsoring the Crapo-Reid legislation.