Arizona’s Silver And Gold Bill Undermines The Federal Reserve

GEG
image_pdfimage_print
Arizona’s State House passed a bill to eliminate state capital gains taxes on gold and silver coins because it is an exchange of one kind of legal tender for another kind of legal tender.  Precious metals appear to gain in value when Federal Reserve notes depreciate in value, making the taxable gain fictional.  If the bill becomes a state law, it will encourage the use of precious metals as currency and will open the door to undermining the Federal Reserve’s monopoly on money. -GEG

PHOENIX, Ariz. (Feb 13, 2017) – An Arizona bill that would eliminate state capital gains taxes on gold and silver specie, and encourage its use as currency, passed the House today. Final approval of the legislation would help undermine the Federal Reserve’s monopoly on money.

Rep. Mark Finchem (R-Tucson) introduced House Bill 2014 (HB2014) on Jan. 9. The legislation would eliminate state capital gains taxes on income “derived from the exchange of one kind of legal tender for another kind of legal tender.” The bill defines legal tender as “a medium of exchange, including specie, that is authorized by the United States Constitution or Congress for the payment of debts, public charges, taxes and dues.” “Specie” means coins having precious metal content.

In effect, passage of the bill would “legalize the Constitution” by treating gold and silver specie as money.

HB2014 passed the full House by a 35-24 vote.

Under current Arizona law, gold and silver are subject to capital gains tax when exchanged for Federal Reserve notes, or when used in barter transactions. If the purchasing power of the Federal Reserve note has decreased due to inflation, the metals’ nominal dollar value generally rises and that triggers a “gain.” In most cases, of course, the capital gain is purely fictional. But these “gains” are still taxed — thus unfairly punishing people using precious metals as money.

A STEP FORWARD

Passage of HB2014 would allow Arizonans to deduct the amount of any net capital gain derived from the exchange of one kind of legal tender for another kind of legal tender or specie (gold and silver coins) from their gross income on their state income tax. In other words, individuals buying gold or silver bullion, or utilizing gold and silver in a transaction, would no longer be subject to state taxes on the exchange.

Passage into law would mark an important step towards currency competition. If sound money gains a foothold in the marketplace against Federal Reserve notes, the people would be able to choose the time-tested stability of gold and silver over the central bank’s rapidly-depreciating paper currency. The freedom of choice expanded by HB2014 would allow Arizona residents to secure the purchasing power of their money.

“This isn’t going to end the fed’s monetary monopoly overnight, but it sets the foundation and opens the door for more market activity by the people,” Tenth Amendment Center executive director Michael Boldin said. “This is an important part of the overall strategy, and activists in Arizona should continue working to get both bills passed.”

BACKGROUND INFORMATION

Currently, all debts and taxes in Arizona must be paid with either Federal Reserve Notes (dollars), authorized as legal tender by Congress, or with coins issued by the U.S. Treasury — very few of which have gold or silver in them.

But the United States Constitution states in Article I, Section 10, “No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts.”

The Arizona bills take a step towards that constitutional requirement, ignored for decades in every state. Such a tactic would undermine the monopoly or the Federal Reserve by introducing competition into the monetary system.

Professor William Greene is an expert on constitutional tender and said when people in multiple states actually start using gold and silver instead of Federal Reserve Notes, it would effectively nullify the Federal Reserve and end the federal government’s monopoly on money.

Read Full Article Here…

Related Post

Visit our Classified ads.

Check out our Classified ads at the bottom of this page.

Recent stories & commentary

Classifieds

For classified advertising rates and terms, click here. The appearance of ads on this site does not signify endorsement by the publisher. We do not attempt to verify the accuracy of statements made therein or vouch for the integrity of advertisers. However, we will investigate complaints from readers and remove any message we find to be misleading or that promotes anything fraudulent, illegal, or unethical.

1
Leave a Reply

avatar
1 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
0 Comment authors
Power to the people - Family Business Office Inc. Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
trackback
Power to the people - Family Business Office Inc.

[…] $20 to $1235/ounce and silver fell 67 cents to $17.74/oz. Arizona’s State House passed a bill to eliminate state capital gains taxes on gold and silver coins—in effect “legalizing the Constitution” by treating gold and silver […]