Arizona Passes Bill To End Income Taxation On Gold And Silver

Tyler Durden's picture

Sound money advocates scored a major victory on Wednesday, when the Arizona state senate voted 16-13 to remove all income taxation of precious metals at the state level. The measure heads to Governor Doug Ducey, who is expected to sign it into law.

Under House Bill 2014, introduced by Representative Mark Finchem (R-Tucson), Arizona taxpayers will simply back out all precious metals “gains” and “losses” reported on their federal tax returns from the calculation of their Arizona adjusted gross income (AGI).

If taxpayers own gold to protect themselves against the devaluation of America’s paper currency, they frequently end up with a “gain” when exchanging those metals back into dollars. However, this is not necessarily a real gain in terms of a gain in actual purchasing power. This “gain” is often a nominal gain because of the slow but steady devaluation of the dollar.  Yet the government nevertheless assesses a tax.

Sound Money Defense League, former presidential candidate Congressman Ron Paul, and Campaign for Liberty helped secure passage of HB 2014 because "it begins to dismantle the Federal Reserve’s monopoly on money" according to JP Cortez, an alumnus of Mises University.

Ron Paul noted, “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.” In early March, Dr. Paul appeared before the state Senate committee that was considering the proposal.

“We ought not to tax money, and that’s a good idea. It makes no sense to tax money,” Paul told the state senators. “Paper is not money, it’s a substitute for money and it’s fraud,” he added, referring to the fractional-reserve banking practiced by the Federal Reserve and other central banks.

After the committee voted to pass the bill on to the full body of the Senate, Dr. Paul held a rally on the grounds of the state legislature, congratulating supporters of the measure and of sound money.

Paul told the crowd that “they were on the right side of history” and that even though those working to restore constitutional liberty to Arizona and all the states “had a great burden to bear,” there are “more than you know” working toward the same goal.

Referring to the bill’s elimination of capital gains taxes on gold and silver, the sponsor of the bill, State Representative Mark Finchem, said, “What the IRS has figured out at the federal level is to target inflation as a gain. They call it capital gains.”

Shortly after the vote in the state Senate, the Sound Money Defense League, an organization working to bring back gold and silver as America's constitutional money, issued a press release announcing the good news.

“Arizona is helping lead the way in defending sound money and making it less difficult for citizens to protect themselves from the inflation and financial turmoil that flows from the abusive Federal Reserve System,” said Stefan Gleason, the organization’s director

As a reminder, in 1813 Thomas Jefferson warned, “paper money is liable to be abused, has been, is, and forever will be abused, in every country in which it is permitted.” This is also why the men who drafted the Constitution empowered Congress to mint gold and silver, sound money, and why they included not a single syllable authorizing the legislature to "surrender that critical power to a plutocracy with a penchant for printing fiat money."

Slowly, states may be summoning back the days when money was actually worth something. At least 20 states are currently considering doing as Arizona is about to do and remove the income tax on the capital gains from the buying and selling of precious metals: some state legislatures, including Utah and Idaho, have taken steps toward eliminating income taxation on the monetary metals.  Other states are rolling back sales taxes on gold and silver or setting up precious metals depositories to help citizens save and transact in gold and silver bullion. 

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Boris Alatovkrap's picture

Preparing for collapse of petro-dollar?

boattrash's picture

They can expect an influx of new metals dealers...

barndoor's picture

In Canada, there is no capital gains on items bought and sold for less than $1,000.  No sales tax either.  Canadian S Maples, bitches.

barndoor's picture

Got $978 left to go before I pay a cent in tax.  

Who am I kidding, this stuff will only be used in the future barter economy...

TwelveOhOne's picture

"End taxation on gold and silver"?  Sounds to me like they're realizing the game is afoot.

tmosley's picture

In Texas, there is no tax on ANY form of income. Same is true in other states.

People should leave the states that rob them.

YourAverageJoe's picture

We just take the ass fucking thru our property taxes.

Burleson County sees my $1700 carport I put in 2 years ago for my boats as being worth $10,000.

Just Another Vietnam Vet's picture

Extreme very high Property tax, plus lots of other taxes.........are not all to consider in Texas.  

The "public" utilities are OUTRAGEOUSLY expensive.

And they don't run things in gobermint on backslaps and handshakes, its called taxes.   

Its called, Come On Down and Join Us.   Help us drink the Cool Aid !!!!!!!!!!

Midas's picture

You have a carport?  You lucky bastard, you should be happy to share some of your good fortune with a much-deserving single mom, especially on Mother's Day.

Buster Cherry's picture

How grateful will she be for the attention?

Rich Stoehner's picture

Who in the hell is trading physical for fiat dollars? Only fools are paying that tax to begin with.
Also all taxes are robbery.

Justawhoaman's picture

Did you show them the receipt and complain?  If it is one of those roofs with metal columns, it is also a PORTABLE STRUCTURE, meaning they can't tax it at ALL.  (I have had to do this in Blanco County).

NidStyles's picture

This is Arizona we are talking about.

 

In central Arizona it's all far-right and Mormons.

 

This will be the only place in the southwest that will still look like a European village when the flood of Bolsheviks comes. 

knukles's picture

Ain't it amazing that after all the machinations, revelations and awakenings, we're right back where our dads used to tell us ... to watch out for the Commie Rat Ass Bastards.
All these years they've simply been hiding behind new and different names and packaging.
Commies.

If CA secedes from the Union, will they merge with North Korea?  Seems on the surface, they've much the same ideas.

El Oregonian's picture

Well, the Cali governor Sun nun Moonbeam kinda flows in those circles.

A. Boaty's picture

PMs for the glorious People's Revolution, Comrade Knukles.

KFBR392's picture

with the exception of the mormons element this a good thing what u said...and true...but getting less and less so as more left and right coasters keep coming and fucking it up

ebworthen's picture

I had no idea, thought it had all gone to the Mexicans or retiree John McCain voters.

Perhaps fewer tragic boating accidents in Arizona now?

Bill of Rights's picture

Better than far left and retarded.

barndoor's picture

And Bill of Rights is speaking from personal experience in this matter.  At least on one front.

booboo's picture

at least we know now what the politicians are accumulating

NidStyles's picture

This literally changes nothing...

 

Gold and silver exchanges for like items is non-taxable already... It's only taxable if you use a bank, and good luck finding a bullion shop in AZ that will take anything except cash. I can only think of two in the entire state that deal in credit and debit.

 

Global Douche's picture

But...but..but, they have to keep records if you're dealing with a high value in terms of dollars of metals. I carry no particular favorite for that reason. Spread the love around!

Edmund Dantes's picture

why would you ever sell anyway?

83_vf_1100_c's picture

  Why pay the 4% penalty by using a debit or CC? It's a cash kind of biz, or an m.o. or bank draft for online.

moorewasthebestbond's picture

Because credit cards with 2% cash back and 15 to 21 month of 0% interest are not uncommon.

konadog's picture

Exactly what I was thinking. The elites want to get that tax off the books before the fiat collapse. Keep stacking.

Anteater's picture

No, Arizona is desperate for taxes. Now you won't be able to write off those devastating GLD/SLV dips as 'gambling losses', or call the -35% buy:sell hit when you do cash out of phyz as an unreimbursed transaction expense, lol. Phyz is a pure loss now.

Donald J. Trump's picture

Or do they predict a major monkey hammering in precios metals and don't want to lose the taxes, since a loss also counts against agi currently.

KFBR392's picture

despite steafy inflow of moronic californians over several decades state remains encouragingly maverick

knukles's picture

Some Californians leaving the state are refugees from the Progressive madness, not Commies.
Ideal place to live would have open carry, legal pot and a state house that meets no more than once every 3 years for 1 month.

Why Bother's picture

I lived in Arizona for nineteen years. Only once have I seen anyone open carrying. A friend of mine owning guns longer than I have told me he would not want to open carry because he would not want to be challenged by any drunk asshole, for example at a fireworks show.

 

In California you can get a ccp in many counties, including Orange County.

Or you can live in one of the top safe places in California http://backgroundchecks.org/50-safest-cities-in-california-2016.html

or you can simply ignore silly edicts and own whatever firearm you want to own.

Why Bother's picture

I lived in Arizona for nineteen years. Only once have I seen anyone open carrying. A friend of mine owning guns longer than I have told me he would not want to open carry because he would not want to be challenged by any drunk asshole, for example at a fireworks show.

 

In California you can get a ccp in many counties, including Orange County.

Or you can live in one of the top safe places in California http://backgroundchecks.org/50-safest-cities-in-california-2016.html

or you can simply ignore silly edicts and own whatever firearm you want to own.

decon's picture

I was born in AZ and lived here my whole life.  I see open carrying almost every day if I go out to public places.  I live in a more rural area so that probably makes a difference. 

 

We're working on getting rid of McCain but since only 35% living in AZ are from AZ it's tough to overcome.

Why Bother's picture

Are all Californians moronic?

 

If you say yes, it's your burden of proof.

Ms No's picture

The feds will probably respond by increasing their cut of stolen loot.  Whoever those 13 who voted against this were they should be thrown out of office, preferably before the satanic NSA gets all elections on lockdown.

 

Greendawg's picture

It also has the added benefit of being immune to ransomware attacks and keyloggers :D

Stormtrooper's picture

Yeah, but holders waste a lot of time keeping it shined up.

OCnStiggs's picture

The House of Cards will fold if we all become aware.

This guy worked for the Elites and his story is riveting -and scary as hell. The Elites run EVERYTHING and our government is merely a smokescreen for what goes on behind the scenes. They are about to topple.

You will never look at government the same again...Be sure to go full screen in order to read the subtitles. Scary stuff indeed. Really makes you wonder about all the pedophilia stuff in the news lately.

http://www.wakingtimes.com/2017/04/28/intl-banker-blows-whistle-admits-o...

Seasmoke's picture

Not many capital gains these past 5 years. Yet.

YourAverageJoe's picture

Good for you Arizona, now recall that crazy senator of yours...

GodHelpAmerica's picture

I gained some respect for Arizona after reading this, but then I remembered they have McCain as a senator...

Global Douche's picture

Perhaps they vote for McCain to just get RID of him, the same as Arkansas did with Bubba.

TeethVillage88s's picture

Could be part of Gant Chart for Secessionist of California.

- Part of a list of actions to proceed Secession, Asinine or not

Clock Crasher's picture

"We're in the pipe. Five by five "

-Aliens

Yeah 5000 Dow / 5000 Gold