Both Idaho and Arizona are looking at allowing gold. silver etc to circulate as legal tender:
Inflation is the most pernicious of taxes levied by our government. Officials systematically devalue the dollar, then levy capital gains taxes on assets when their dollar price rises. The “gains” are largely illusory. Rising asset prices over time reflect the fact that the dollar buys less of everything. But the tax obligations triggered by this inflation are very real.
Testifying at a hearing for the Idaho measure, Stefan Gleason pointed out that “by taxing so-called gains on exchanging precious metals for devalued Federal Reserve Notes, we’re adding another tax on top of the inflation tax.” Idaho State Representative Ron Nate added, “Citizens aren’t allowed to declare capital losses when the dollars they hold lose value. So, it isn’t fair to tax capital gains when the gold and silver they own rises in value.”
The Idaho bill — HB206 — passed the House Committee on Revenue and Taxation last Thursday and is expected to come up for a vote on the house floor in the coming days.
The Arizona House of Representatives passed its own version of the Idaho bill, HB2014, in mid-February, sending it on to the state Senate which is holding a hearing this Wednesday. Former Congressman Ron Paul is scheduled to testify.
Meanwhile, Alabama, Tennessee, Virginia, and Maine are working to eliminate sales taxes on gold and silver bullion.
Supporters of sound money are working hard to reestablish gold and silver as money according to state law and to make sure it is treated as such in the tax code. Trading one form of money for another should not trigger any tax. There is no sales tax when customers swap their precious metals for dollars, so switching dollars to bullion should also be tax exempt.
Oklahoma, Utah, Texas, Idaho, and nearly 20 other states already exempt precious metals from sales tax. Utah and Oklahoma have gone one step further, reaffirming the US Constitution’s designation of gold and silver as legal tender. As such the metals are free from all state taxes — including capital gains.
Texas and Tennessee have both approved measures to establish precious metals depositories in their states. Utah legislators are now considering a bill to authorize the same. The idea is to facilitate ownership of gold and silver bullion in state-run investment funds including pensions.
Ron Paul is going to be in Arizona to garner support to push the bill:
HB 2014 is a very important and timely piece of legislation. The Federal Reserve’s failure to reignite the economy with record-low interest rates since the last crash is a sign that we may soon see the dollar’s collapse. It is therefore imperative that the law protect people’s right to use alternatives to what may soon be virtually worthless Federal Reserve notes.
Passage of HB 2014 would also send a message to Congress and the Trump administration that the anti-Fed movement is growing in influence. Thus, passage of this bill will not just strengthen movements in other states to pass similar legislation; it will also help build support for the Audit the Fed bill and legislation repealing federal legal tender laws.
This Wednesday I will be in Arizona to help rally support for HB 2014, speaking on behalf of the bill before the Arizona Senate Finance Committee at 9:00 a.m. I will also be speaking at a rally at noon at the Arizona state capitol. I hope every supporter of sound money in the Phoenix area joins me to show their support for ending the Fed’s money monopoly.
Hmm…Will be interesting to watch this space.
These debates show three things.
- One, Whatever the proponents of central bank and fiat money say, there is little doubt that these things have gone out of control. Nothing seems to have worked – following rules, following targets and so on. Central banks with their governments have continued to be very adventurous on monetary matters.
- Two, how these currency issues usually come to the fore in US. One would imagine given Fed’s dominance over world economic affairs, guys in US would be happy yo keep thing going. But it is not the case. In US, Central bank governed money continues to be a huge issue. It did not allow its first two central banks to continue and even now post 100 years of Fed the history remains alive on the issues. History matters plain and simple.
- Three, how States remain powerful entities in US political system. To imagine States declaring their own legal tender is quite something..