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Bush Administration Joins Debate on Capital Gains Treatment for Precious Metals Investment Products
(Washington, D.C. - February 10, 2004) The Bush Administration, in its Fiscal Year 2005 budget released last week, requests that Congress simplify the taxation of capital gains on collectibles. Precious metals bullion investment products, such as silver bars and American Eagle silver coins, are currently taxed at ordinary rates with a maximum rate of 28 percent due to their classification as a collectible under current tax code. The Administration suggests that figure be reduced to 25 percent for those taxpayers in the 35-percent tax bracket, and reduced rates for those taxpayers in the lower tax brackets.
The Silver Institute has long been at the forefront of efforts to remove precious metals investment products from the collectibles category entirely and will continue the effort in the second session of the 108th Congress. The Silver Institute and other allied groups are pushing hard for Congress to adopt H.R. 574 and S. 611, measures to treat precious metals investment tools in the same manner as equities and mutual funds in terms of the long-term capital gains rate, currently at 15 percent.
"Our Congressional supporters are pleased that the Administration has recognized the complexity regarding the taxation of collectibles, however, complexity has never been our point of contention. Our concern is that precious metals investment products do not belong in the collectibles category and should be treated like equities and mutual funds under the tax code because they trade like equities and mutual funds," said Michael DiRienzo, Director of Public Affairs for the Silver Institute.
"When Congress debates this measure in Committee, we are confident that our Congressional allies will be there arguing for the removal of precious metals from the collectibles tax category," DiRienzo added.
Further buttressing the argument for this change in the tax code is the very low fiscal impact passage of these bills would have on the federal government, which the Congressional Joint Committee on Taxation has projected at just $52 million in total over a ten-year time frame.
The Silver Institute is a nonprofit international industry association headquartered in Washington, D.C. Established in 1971, the Institute serves as the industry's voice in increasing public understanding of the value and many uses of silver.
For
Further Information Contact:
Mike DiRienzo
The Silver
Institute
1200 G Street, N.W., Suite 800
Washington, D.C. 20005
Tel:
(202) 835-0185
Fax: (202) 835-0155
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