Arizona Senate Committee Passes Bill To Treat Gold As Money, Remove Capital Gains Tax

Tyler Durden's picture

Via Michael Boldin of The Tenth Amendment Center,

Today, an Arizona Senate Committee passed a bill that would eliminate state capital gains taxes on gold and silver specie, and encourage its use as currency. Final approval of the legislation would help undermine the Federal Reserve’s monopoly on money.

Former US Rep. Ron Paul testified today in the Senate Finance Committee in support of House Bill 2014 (HB2014). The legislation, which previously passed the state House by a 35-24 vote, 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, as Paul noted, “legalize competition in a Constitutional fashion.”

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.

“We ought not to tax money, and that’s a good idea. It makes no sense to tax money,” said Paul. “Paper is not money, it’s a substitute for money and it’s fraud,” Paul continued, noting the importance of honesty money vs federal reserve notes.

Today, the Senate Finance Committee passed the bill by a 4-3 vote along party lines.

AN IMPORTANT STEP FORWARD

Passage of HB2014 would remove 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.

Bill sponsor Rep. Mark Finchem (R-Tucson) discussed this as well. “What the IRS has figured out at the federal level is to target inflation as a gain. They call it capital gains.” He noted that the bill would help Arizona residents “protect their conversion of one kind of currency for another.”

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.

Ron Paul added that he considered the Arizona bill to be “very important” because it would also serve as an educational effort for other states. In fact, similar legislation is also under consideration in Idaho, Texas, Tennessee, Virginia, and Maine.

“The responsibility is on the states to follow the constitution,” said Paul.

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.

“Over time, as residents of the state use both Federal Reserve notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve notes do will lead to a “reverse Gresham’s Law” effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve notes). As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the state’s treasury, an influx of banking business from outside of the state – as people in other states carry out their desire to bank with sound money – and an eventual outcry against the use of Federal Reserve notes for any transactions.”

Once things get to that point, Federal Reserve notes would become largely unwanted and irrelevant for ordinary people. Nullifying the Fed on a state by state level is what will get us there.

UP NEXT

HB2014 now moves to the Senate Rules committee for further consideration.

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Ms No's picture

That's cool and all but there is still a federal capital gains tax, which is BS.  That should go next.  The fed would probably shit their pants.  Which is another good reason to do it.

TwelveOhOne's picture

I've recently learned that "revocation of election" isn't the right process, and am looking into Pete Hendrickson's site http://losthorizons.com and his book, "Cracking the Code".

The good news is this process will get my money back, unlike Weiss'; the bad news is, I'm out a thousand Euros.

Tarzan's picture

Tuesday, my 82 year old in-laws pull into NE Florida hauling everything they own.  Kinda weird to be moving across the country at that age, but they've made the trip driving a 26' Uhaul and their SUV pulling a trailer, from Arizona to Florida in their 80s.

They wanted to live near their great grand kids, but the State taxes on His pension was what pushed them to leave their beloved Arizona.

Arizona should think about putting a stop to taxing retirees!

prime american's picture
prime american (not verified) Tarzan Mar 9, 2017 6:41 AM

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://bit.ly/2jdTzrM

TheLastTrump's picture

Taxing it at the collectible rate is bullshit when selling it at bullion rates.

 

It's deliberate death by taxation.

Raffie's picture

The true American states are standing up one at a time.

This is good stuff.

Bay of Pigs's picture

Ive never had any coin dealer ask me about paying taxes when selling some gold or silver. Never had an issue traveling internationally with some of it either. Under $10K worth and its fine and all legal.

Yog Soggoth's picture

Whas your name next? I like to know            you personally. zzeeee how it works?

Economy-X's picture

How do you build a society without taxes? Since as we all know rational individuals seeking their own self-interest in a capitalist economy will not build roads, schools, healthcare, police stations, fire stations, army facilities etc. A wise man once said taxes are the price of civilization. Remove the head of one hydra only to grow the head of another

(translation: without taxes for the above and as a means of redistributing some of the stolen loot from normal capitalist operations, instead of a Federal Government we will have a new defacto organization of overlords who own the majority of all wealth and won't pay for a damn thing for the rest of us who actually make the world work. Oh sorry, that's the 1% who already hardly pay any taxes in a country that is falling apart on every level. The US is f**ked, and the more you cut taxes the more f**ked it becomes. But I guess a big boost in military spending will help)

HillaryOdor's picture

"Since as we all know rational individuals seeking their own self-interest in a capitalist economy will not build roads, schools, healthcare"

More bullshit from the religion of Marxism.  We had roads, schools, and healthcare (lol) before the government took them over, and the other things you mentioned do more harm than good.  Yes, according to these clowns nobody actually cared about their health enough to find a doctor until the government passed all these regulations and forced people to buy insurance.  Read a fucking book you moron.  Look up the origin of the word turnpike.  

And I would take capitalist "overlords" over government overlords 1000% of the time.  You know why?  Because a capitalist overlord has no power over you.  John D. Rockefeller didn't lock people in prison for smoking pot.  He couldn't do that.  He had no authority.  He had power ONLY because he provided a service that improved people's lives.  You have to choose to buy their products or services and give them your money/power VOLUNTARILY.  They can't steal it from you.  With government you have no choice.  They take power and they steal your property and if you don't like it, tough shit.  You have to start a revolution, but once they take control of the schools and make everyone retarded like you that becomes much more difficult.  With government the only choice you have is the fake choice at the voting booth, but anyone with any sense knows real voting that actually matters happens with your wallet, not in an election.  Just because you don't want to have any choice in your life doesn't mean you have the right to take away everyone else's choices you sack of shit.

Liberty2012's picture

;) Capital = tools to make things ~ productivity

Anti-capitalist = anti-work

HillaryOdor's picture

People are just so fucking stupid they actually think the government exists to help them.  And when they talk about government they ONLY talk about the good things it does and ignore every bad aspect.  Yes government provides valuable services, but at an astronomical cost.  Everything the government does could be done better and for less money by the private sector.  But part of the brainwashing is that you can't trust the private sector because people are greedy.  Well people in government are greedy too.  Everyone is greedy, even the Marxist clowns who like to pretend they've evolved beyond greed.  It's just blatantly obvious that it's better to have a choice to refuse payment if you are unhappy with the services rendered.  It's always better to have more choices.  It's doesn't take a lot of thought to see that.  It actually takes a lot of anti-thought to twist your mind into an ideological pretzel to convince yourself otherwise.

Taxes are not the price we pay for civilization.  That's a statement so ridiculous only someone who went to government schools could believe it.  There are plenty of uncivilized high tax countries.  Civility is a function of culture.  Taxes are the price we pay for not restraining government, and government actually holds back civilization.  I have no doubt in my mind that we would be far far more advanced in every respect if we had less government, and the freer we were the more advanced we would be.   All the government does is offer short term solutions that leave devastating long term problems even worse off than before they acted.  People can solve problems, if only the government would let them.

yellensNIRPles's picture

Me right now - Slow clap. Stands from chair with tear in corner of right eye. Internal monologue: "Fuck. Yes. Preach it."

I'd buy you a beer if I could.

SeuMadruga's picture

And I'd upvote 10x both your posts above if I could !

(ps: perhaps using schlongwave's multiple avatar approach...:-)

pslater's picture

My ex, who is a lifetime govt employee libtard once told me to be "..thankful I don't get as much govt as I pay for."  At least she gave me two beautiful children.

Huh Reeeally's picture

Nicely stated.

Signed in just to upvote you.

Latitude25's picture

Taxes are irrelevant when money can be created out of thin air.  Just print the money and buy all the government services you want.  Why do you work for money that can be created like that?

Doom Porn Star's picture

" The legislation, which previously passed the state House by a 35-24 vote, would eliminate state capital gains taxes on income “derived from the exchange of one kind of legal tender for another kind of legal tender.” "

 

This shit is written by politicians for God's sake.   Let's actually read the fucking legislation before we high five each other and pop the champaigne, OK??.

Is this specifically worded so that profits made from FOREX Trading are excluded?

IMHO it sounds as if Arizona is trying to attract FX Desks with Tax Exemptions.

 

detached.amusement's picture

Ms No, the capital gains tax actually meets the definition of income per the unconstitutional 16th amendment.  This withholding bullshit and what is targeted is another story, though...

J bones's picture

Good work Ron Paul!

Duc888's picture

 

 

Fuck yea.

 

hedgeless_horseman's picture

 

Thank you to those in Arizona and elsewhere that fought for all of us Americans on this issue!

hedgeless_horseman's E-Z Internet Guide On How To Actually Buy Gold, and Not Just Talk About It, Bitchezzz!!!!

 

 

There are usually no transaction receipts or records of any kind for these exchanges, and so it is up to the individual taxpayer to track his own capital gains and losses, be that as it may. 

 

 

 

 

I am not a tax expert, am not giving any professional advice, and cannot even spell CPA or IRS.

Scuba Steve's picture

Sooooooo ... is the picture for target practice in the Arizona desert?

hedgeless_horseman's picture

 

Lois set the standard for honesty in such manners, and bad haircuts.

Doom Porn Star's picture

IF only it was as simple and acceptable for the taxpayers to mutter to IRS agents about the Fifth Amendment and walk the fuck outta the room without any further bullshit...

338's picture

If we had a functional constitution they would have no IRS, because they would have no way to figure out what we make, earn, think create or produce.

 

But I digress, let's see if this get's out of the full senate here in AZ before we start getting all wee-wee'd up.

 

H_H, great radio this weekend!!!

 

 

s

detached.amusement's picture

that's why the constitution for the united states was switched out with the constitution of the united states when congress illegally reconvened after the southern secession

hotrod's picture

buying my next car in Arizona with GOLD

Handful of Dust's picture

There's plenty of lawyers and doctors who will gladly accept other forms of payment besides fiat.

In fact, there's some law firms that now have 10-20% of their so-called, War Chest in gold instead of all cash. If I were a doc I would hang a big sign in my office wating room next to the front counter where patients wait or check out:

 

"WE ACCEPT CREDIT CARDS, CASH & GOLD AS PAYMENT FOR SERVICES"

TwelveOhOne's picture

Quit spamming that to every thread.  I haven't reported you, yet.

yellensNIRPles's picture

And you stole my NIRP joke, fucker.

blindman's picture

"If I speak in the tongues of men or of angels, but do not have love, I am only a resounding gong or a clanging cymbal. If I have the gift of prophecy and can fathom all mysteries and all knowledge, and if I have a faith that can move mountains, but do not have love, I am nothing. If I give all I possess to the poor and give over my body to hardship that I may boast, but do not have love, I gain nothing.

Love is patient, love is kind. It does not envy, it does not boast, it is not proud. It does not dishonor others, it is not self-seeking, it is not easily angered, it keeps no record of wrongs. Love does not delight in evil but rejoices with the truth. It always protects, always trusts, always hopes, always perseveres."

1 Cor 13:1-7
.
jesse...
.
Sing Street - Up
https://www.youtube.com/watch?v=3jasb2Wtsf4
.
Sing Street - Drive It Like You Stole It (Official Video)
https://www.youtube.com/watch?v=fuWTcmjnEGY
.
Clif High-Chaos Starts Middle of March
https://www.youtube.com/watch?v=SXFJUAf9afA

We Are The Priests's picture

Now this is real news and truly a victory--albeit a small one--for States rights and against the Fiat Banking Cabal that is the real enemy of the People.

We do wonder what McShitStain will have, if anything, to say about it.

DisorderlyConduct's picture

The legacy media will be silent. The establishment will ignore it when they can and marginalize it when they can't ignore it.

blindman's picture

slavery, let me count the ways.
....

CaptainObvious's picture

Thank you, Dr. Paul!

This?  This is why I wrote your name in on my ballot in '08 and '12.  He gets it.  And he's the only politican out there who does.  Standing ovation, sir!

Kaiser Sousa's picture

Keep fucking with the phony paper prices of the only 2 forms of REAL MONEY bbaker Bitches...

DEATH TO THE MONEYCHANGERS.

CaptainObvious's picture

Well, three if you count platinum, which I do.  Four if you count lead, which I also do.

Miss Informed's picture

If they all die how will you change money?

pc_babe's picture

For all practical purposes, there exists in the United States today four distinct monetary standards: paper (including base metal coin, collectively “fiat legal tender”), together with silver, gold and platinum (collectively “specie legal tender”). 31 United States Code (U.S.C) §§ 5103 and 5112.

In light of this, citizens would do well not only to understand, but also to claim the benefits of exercising true choice in currency for themselves, their families and communities, as well as the country at large.

https://upma.org/#about_us

Ms No's picture

It's things like this and Arizona not requiring a concealed permit that makes us a huge target.  We would be under some type of major seige if Hillary was in right now.  We probably are anyway because they are still spraying shit.  Oh yeah that conspiracy theory is real too.  It will come out later.  It was super bad today.  Nothing like watching a plane leave a trail that sticks in the sky for eight hours.  The other day they were in circles.  They just play around up there.

One of We's picture

"Conspiracy fact" or just a true conspiracy to correct you.  They spray up here in AK too and the weather changes forthwith.  Apparently they aren't dropping sedatives because a lot of the the natives are getting a bit restless 'round here......

Kat Daddy's picture

How interesting that we are told the false narrative of Global Warming, last night there was a story on PBS about a great ice shelf breaking off of Antartica, however I understand there is new ice buildup on the other side of the frozen continent.  http://www.torontosun.com/2012/10/12/antarctic-ice-pack-increasing-in-si... Chemical Sprating by the military in so obvious and in your face, and most of the sheeple are completely blind to it.  There is such a noticable difference between a normal jet contrail and a plume of chemical that goes from horizon to horizon and slowly dissapates into the atmosphere.  I would say THAT IS THE GREATEST THREAT TO THE EVVIRONMENT! 

bobdog54's picture

Good start, c'mon Texas!

Twee Surgeon's picture

I thought Greg Hunters recent guest was pretty interesting with his Un-denominated Silver coin fluctuating with the market price, etc.

His ideas about Mexicans coming to work in the fields were just self delusional and racist (as expected.)

But still an interesting idea on the Silver coin.

https://www.youtube.com/watch?v=7PBYjhHD9Dg