Fundamentally, gold and silver are money. But most governments treat precious metals as a commodity. They don’t accept it as payment. Worse than that, they tax it. Think about the absurdity of this policy.
Many state legislatures kick off their 2018 sessions this month and that means continuing efforts to facilitate gold and silver ownership at the state level.
Bills introduced in Tennessee and Alabama would repeal state sales taxes on the sale of gold and silver bullion, and an Arizona bill would build on a foundation set last year and take another step toward treating gold and silver as money. These efforts not only help expand the market for gold and silver in the US, they also have the potential to undermine the Federal Reserve’s monopoly on money.
Over the last few weeks, three states have moved measures forward that chip away at the Federal Reserve’s monopoly on money by facilitating and encouraging the use of gold and silver.
While Congress will most likely never even audit the Fed, much less end it, this kind of action at the state level can undermine the Federal Reserve. Coupled with individual action, it could effectively erode the central bank’s monopoly on money.
Good news for precious metals investors in Arizona.
On Monday, Gov. Doug Ducey signed a bill into law that eliminates states capital gains taxes on buying gold and silver specie. It tax repeal will not only benefit Arizonans who invest in gold and silver, it will also facilitate their use as currency and undermine the Federal Reserve’s monopoly on money.
Bills are moving forward in several states that would support gold and silver and ultimately help undermine the Federal Reserves monopoly on money.
Legislation that would eliminate state capital gains taxes on gold and silver specie is sitting on Arizona Gov. Doug Ducey’s desk waiting for his action.
Rep. Mark Finchem (R-Tucson) introduced HB2014 earlier this year. 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 into law would “legalize the Constitution” by treating gold and silver specie as money.