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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (27007)	2/23/2005 12:26:39 AM
From: regli	Read Replies (1) \| Respond to of 110194

MiningWeek Online May 14, 2004 Volume 10, Issue 19 Precious metals capital gains provision added to FSC/ETI legislation A provision to end unfair tax penalties on investments in gold, silver, platinum and palladium was added to the Foreign Sales Corporation/Extraterritorial Income Exclusion (FSC/ETI) measure passed by the Senate this week (see related story, this page). The provision is based on S. 611, which was introduced by Sen. Harry Reid (D-NV) with Sens. Allard (R-CO), Miller (D-GA) and Crapo (R-ID) as co-sponsors. Reid successfully persuaded Senate Finance Committee Chairman Charles Grassley (R-IA) and ranking Democrat Max Baucus (D-MT) to add the Fair Treatment for Precious Metals Investors Act to the legislation. The measure would cut the capital gains tax for precious metals to match the rate for other types of common investments. Precious metals are currently classified as “collectibles” and taxed at the highest capital gains rate of 28 percent, while stocks and bonds are taxed at a lower rate of 15 percent for sales after May 5, 2003 (20 percent for sales before that date). The Senate-passed measure will reclassify purchases of gold, silver, platinum and palladium bullion, in coin and bar form. It will not directly affect prices or tax rates for smaller amounts of precious metals used for commercial purposes, such as gold jewelry. “Many people avoid investment opportunities in precious metals because of the extra tax burden,” Reid said. “Nevadans need diversified portfolios, and yet the government has designed tax laws that make one type of investment more costly than another. This bill will fix the problem – it will be good for investors and good for Nevada’s mining industry.” nma.org