by Tyler Durden
May 26, 2017 10:43 AM
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 gold and silver specie. It's 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.
Rep. Mark Finchem (R-Tucson) sponsored HB2014. The legislation eliminates 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 will “legalize the Constitution” by treating gold and silver specie as money.
The new law will go into effect Aug. 9, 2017.
Getting Gov. Ducey’s signature on the bill was a major victory, and the culmination of more than five years of work by supporters of sound money in the Grand Canyon State. Similar legislation passed the legislature in 2013, 2015, and 2016, but Gov. Jan Brewer vetoed the first two bills, and Gov Doug Ducey killed last year’s effort.
Grassroots support was crucial in pushing this legislation across the finish line this year. A dedicated group of volunteers lobbied for the bill, and Ron Paul traveled to Arizona and testified on its behalf.
We ought not to tax money – and that’s a good idea. It makes no sense to tax money,” he said. “Paper is not money, it’s fraud.”
The new law’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.”