Several States Looking to Repeal Taxes on Gold and Silver

by Peter Schiff, Schiff Gold:

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.

HB2014 has passed both houses of the Arizona legislature. Gov. Ducey has until May 22 to sign or veto the bill. Last year, he vetoed similar legislation. If you live in Arizona, click here for some specific actions you can take to support this bill.

Former US congressman Ron Paul traveled to Arizona and testified during a committee hearing in support of the legislation in March.
We ought not to tax money – and that’s a good idea. It makes no sense to tax money. Paper is not money, it’s fraud.”

ou can watch Paul’s full testimony in the video below.

The bill’s impact goes beyond mere tax policy. During an event after his Senate committee testimony, Paul pointed out that it’s really about the size and scope of government.

If you’re for less government, you want sound money. The people who want big government, they don’t want sound money. They want to deceive you and commit fraud. They want to print the money. They want a monopoly. They want to get you conditioned, as our schools have conditioned us, to the point where deficits don’t matter.”

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.

“What the IRS has figured out at the federal level is to target inflation as a gain. They call it capital gains,” Finchem said during a committee hearing. 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.

OTHER STATES
Arizona is not the only state looking to free gold and silver from the shackles of taxation. Bills to repeal sales taxes on gold and silver moved out of committee in both North Carolina and Louisiana recently.

Read More @ SchiffGold.com