This article was originally published by Jp Cortez at Money Metals.
Arizona Ends Income Taxation on Gold & Silver Coins
Sound money advocates rejoiced today as Arizona governor Doug Ducey signed House Bill 2014 into law last night. The measure, which passed in the Arizona state Senate on May 10th by a margin of 16-13, removes all income taxation of precious metals coins at the state level.
Under House Bill 2014, introduced by Representative Mark Finchem (R-Tucson), Arizona taxpayers will simply back out all “gains” and “losses” on any precious metals that are in legal tender form and reported on their federal tax returns from the calculation of their Arizona adjusted gross income (AGI).
If taxpayers own gold or silver to protect themselves against the devaluation of America’s paper currency, thanks to the inflationary practices of the Federal Reserve, 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.
“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, Director of the Sound Money Defense League.
Dr. 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.”
A few state legislatures, including Utah and Idaho, have also 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.
Read more about what states can do to promote sound money policies here.
The Sound Money Defense League is a national grassroots organization opposing federal and state policies that undermine the dollar and steal purchasing power from the American people.
Jp Cortez is a graduate of Auburn University and a resident of Charlotte, North Carolina. He is the Assistant Director of the Sound Money Defense League, an organization working to bring back gold and silver as America’s constitutional money. Follow him on Twitter, @JpCortez27
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So can you now sell your gold and silver and avoid paying taxes on any gains you’ve made if you bought while it was still at reasonable prices?
State taxes…..you’d still owe 28% in federal tax.
So what?..I wouldn’t have paid it anyway.
Big f’ing deal.
When Arizona, and the other 49 States follow the US Constitution, and PAY THEIR STATE DEBTS IN GOLD AND SILVER COIN, THEN they will have accomplished something.
Art1Sec10: “….No State shall… make any Thing but gold and silver Coin a Tender in Payment of Debts;…..”
What part of that isn’t clear ?
That means every service, salary, pension, physical material, etc, the State spends money on is supposed to be paid for in gold/silver coin…..not FRN’s
“HB 2014 is a very important and timely piece of legislation.”
A guy living in Arizona with a couple million dollars worth of gold and silver coins and a gun for every personality could fare pretty well no matter what happened in the rest of the world.
That said, alt energy is key to your standard of living and quality of life no matter how much food, water and ammo you have stashed.
Get yours. 🙂
Watch where you put those solar panels. Everybody knows what they are.
Andy:
It is a good thing.
__
Start demanding from your employers to be paid in Gold and Silver as well. Real Money not that BS paper IOU phony promisorry-ass notes. You promise to work when they promise to really pay you in real money. Gold and Silver.
I reposted this before, History Lesson of what real money is.
The United States Is Hosting a Debt Party – $2,000 Gold Is Coming
“The trifling economy of paper, as a cheaper medium, or its convenience for transmission, weighs nothing in opposition to the advantages of the precious metals: that it is liable to be abused, has been, is, and forever will be abused, in every country in which it is permitted…” Thomas Jefferson
If you all like History like I do then you will learn from history. I am currently reading an old book called, “The Leading Facts of American History” written in 1890 by Montgomery
Back during the American Revolutionary War, When General George Washington and his Continental Army, after suffering various defeats, was held up on one side of the Potomac River at Valley Forge in 1777-1778, the opposite side of where the British were positioned and stationed. Washington’s men were beaten, tired cold and humiliated and about to abandon the Revolution. Washington had to quickly come up with a new plan, to somehow bring defeat and at least win a decisive battle to restore moral to his ranks. His men also have not been paid either, and the Continental Currency was losing value quickly, and the men had no interest in that paper currency to keep fighting. So Washington decided to restore faith in the cause, and ordered sacks of “Silver as Hard Currency” to pay the men and help keep his ranks filled. Sure enough he rounded up enough Silver to pay his soldiers in real hard Silver Currency to maintain his forces. With this simple move for payment, Washington also gathered up enough boats and devised his sneak attack on Christmas in the cold of winter to cross the Delaware and catch his opponents dunk and a sleep. Sure enough, Washington Crossed the Delaware River Christmas night, and the sneak attack was decisive battle and what led to a great victory.
So if you want to see how Real Hard Currency like Silver plays out in real life in SHTF, this is a history lesson to plant in your brains. When Push comes to Shove, people know what real money is. Paper currencies come and go and lose value depending on politics or inflation, Gold and Silver lasts forever and is real money. Silver saved the day in 1777, saved the Continental Army, saved the US Revolution and saved a Country. Any more questions about the value of Silver? Just refer to History, it’s in the archives.
Andy, wait until you see what’s going to replace this mess. This isn’t going to get better. A new day is just around the corner. New rules. And the government says, “no more Mr. Nice Guy.”
Digital block chain dollars and other major currency pairs will replace the current system depending upon the country in which you live; once quantum computers are perfected.
You will be able to hold your excess cash in digital accounts (for each currency if desired) and transfer balances between them: for a fee of course.
Of course. 🙂
BTW, if you believe that SDR’s are the currency of the future, run down to your local bank and buy them, now. 🙂
Will this tax be retrospective?
I don’t have enough “taxable” income in NC to have to pay state income tax. Zero, zip, nada, as Rush says.