IT BEGINS…. Idaho & Arizona Pass Bills To Remove “Capital Gains Taxes” On Gold & Silver

In just the past week, lawmakers in Idaho and Arizona have passed bills removing “Capital Gains Taxes” from gold and silver coins and bars.  Normally, when individuals sell gold or silver, they must pay capital gains on any increase on the value of their precious metals investments.  However, gold and silver are really not investments per say, rather they perform as real money.

Thus, the lawmakers in Idaho and Arizona realize their citizens shouldn’t have to pay taxes on their gold and silver holdings because they have increased in value due to the debasement of the U.S. Dollar by loose Federal Reserve monetary policies.

According to the article, Arizona State Senate Committee Passes Bill To Treat Gold As Money, Remove Capital Gains Tax:

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.”

This Arizona House Bill to remove capital gains taxes on gold and silver is a BIG STEP forward to reintroduce precious metals back as their rightful role as REAL MONEY or HIGH QUALITY STORES OF VALUE. 

While the Arizona State Senate Committee passed a bill last week to remove capital gains on gold and silver, Idaho did the same thing just yesterday.  According to the article, Idaho House Of Representatives Votes Overwhelmingly To Remove Income Taxation From Precious Metals:

Boise, Idaho (March 14, 2017) – By an overwhelming 56-13 margin, the Idaho House of Representatives today voted to end all Idaho taxation on precious metals, e.g. gold and silver coins and bars.

Bill sponsor Representative Mike Moyle (R) and the entire Republican caucus voted for the measure.  If the Republican-controlled Idaho Senate follows suit and Governor Butch Otter (R) signs the bill, Idaho citizens will better be able to use gold and silver as a form of savings which protects against ongoing devaluation of America’s currency.

So, we now have two states within the week that have passed bills removing capital gains tax on gold and silver.  However, Utah was the first state in 80 years to pass a bill back in 2011 that made gold and silver legal tender once again.  Thus, individuals in Utah are legal to use gold and silver coin to pay either taxes or for goods and services if both parties agree.

But, what is even more interesting is that Utah just recently (Jan 27th 2017) introduced a bill for a State Gold Depository.  The article, Utah Bill Sets Stage For State Gold Depository, Further Encourages The Use Of Metals As Money, stated the following:

A bill introduced in the Utah legislature would build on the state’s Legal Tender Act, creating a foundation for further action to encourage the use of gold and silver as money, and take another step toward breaking the Federal Reserve’s monopoly on money.

Rep. Ken Ivory (R-West Jordan) introduced House Bill 224 (HB224) on Jan. 27. The legislation would add several provisions to state law designed to encourage the use of gold and silver as legal tender. Passage would set the stage for expansion of gold repositories in the state and authorize further study on several sound money policies.

Specifically, HB224 would authorize the investment of public funds in specie legal tender held in a commercial specie repository.

Here we now have a third state encouraging gold and silver to be used a real money.  Not only does this bill help to reintroduce gold and silver as sound money, it also plans to set the stage for setting up depositories across the state to house its citizens precious metals holdings.  THIS IS A BIG DEAL.

While these are only three states pushing for gold and silver to be used as real money once again, I believe it is just setting the stage for more states to follow suit as the U.S. Dollar’s value continues to evaporate due to massive monetary printing and increased public debt.

So, as the Federal Reserve meets today to raise interest rates or the U.S. Government gets ready to increase the debt ceiling above $20 trillion, several states are preparing for a time when the U.S. Dollar is no longer is a viable form of money. 

Americans better get prepared for what’s coming.  While the precious metals are still being valued in a manipulated highly leveraged gold and silver paper trading market, this is not a system that will last for much longer.  When the markets finally crack under the massive amount of Debt and Derivatives, there will be a mash rush of investors into gold and silver.

Unfortunately, when this occurs, there will be very little physical gold and silver to go around… only a MUCH HIGHER PRICES.

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40 Comments on "IT BEGINS…. Idaho & Arizona Pass Bills To Remove “Capital Gains Taxes” On Gold & Silver"

  1. “when this occurs, there will be very little physical gold and silver to go around”

    heh. money only works if the general population has access to it, but considerably less than 1% of anyone has any g/s at all. it will take an awful lot for g/s to be money again, and right now everyone who is hoarding as much g/s as they can is working AGAINST that, so it’s going to be a LONG time.

    • DisappearingCulture | March 15, 2017 at 9:59 am | Reply

      We will have to travel to China to sell lol

    • gman,

      That is where you are wrong. I won’t take A LOT OF GOLD & SILVER to be money again… just much higher prices. And, this isn’t something that will TAKE A LONG TIME, as you believe. The global financial system is disintegrating under the massive amount of Debt & Derivatives.

      Things are going to become a lot more interesting this year… and on-wards.

      steve

    • gman, The general population barely has u.s.c. private iou bank notes to begin with for their day to day activities:

      “Approximately 62% of Americans have less than $1,000 in their savings accounts and 21% don’t even have a savings account, according to a new survey of more than 5,000 adults conducted this month by Google Consumer Survey for personal finance website GOBankingRates.com.” (Dec 23, 2015) (I am sure the statistics are even worse now, if not by numerical value, then by purchasing power)

      So when the anti-economy shifts back to a real economy by recognizing and using gold and silver once again, these poor families will actually have a chance to own something of real value by earning gold and silver as their wages. Those who have a little more in savings than the average person will come out in top if they shift some of their wealth in gold and silver ahead of time, these individuals will be the ones to spark the new economy.

      • “So when the anti-economy shifts back to a real economy by recognizing and using gold and silver once again, these poor families will …”

        mostly die, because there is no viable food production activity within a hundred miles of where they live.

        “Those who have a little more in savings than the average person will come out in top if they shift some of their wealth in gold and silver ahead of time, these individuals will be …”

        shot.

    • “less than 1% of anyone has any g/s at all.”

      Almost EVERYONE has gold and/or silver. Wedding ring, necklace, earrings, studs, whatever other jewellery.

      • and gold teeth, don’t forget those. “hey grandma, come here ….”

      • I agree… once people start stealing/selling their (old) i-phones for the melt value of silver, then the price did indeed do the long-awaited moon-shot. LOL. I strongly expect that there will be mining companies buying the properties of current/past landfills… It’s coming, just not quite yet.

  2. Why not have both? Money AND currency. The savers as well as the borrowers would be pleased. And me too.

    I can save physical gold and silver as MONEY, and when i need CURRENCY, i’ll deposit some of my silver/gold in exchange for FRN’s. In that way dillution of my savings becomes much harder.

    And, gman, as we both know, there’s plenty of currency.

  3. And lets not forget the Texas Gold depository:

    https://www.texastribune.org/2015/10/30/gold-firms-hope-help-texas-build-gold-depository/

    Its not a bank you know.

    • “Its not a bank you know.”

      probably a future archeological site. “they put it in this hole in the ground so nobody could get to it. and when the time came, nobody could get to it.”

      • 😀

        Very nice gman, love it. Seems you know the drill.

        I’d say; I prefer to dig it up than to have it blown in the wind.

  4. Kurt Albert Müller | March 15, 2017 at 12:07 pm | Reply

    Sorry for being too picky : but “are really not investments per say” is the wrong expression, it should say : “PER SE” (by themselves in latin, or “of their own”, or “in Fact” in a looser translation)

  5. Diogenes Shrugged | March 15, 2017 at 12:43 pm | Reply

    If I understand correctly, the states can’t nullify federal tax laws, so capital gains on precious metals sales will still be taxed at the federal level. Note that there are already states that don’t collect a state income tax, thus obviating the need for special tax considerations for precious metals sales.

    As with marijuana, however, the states are leading the way. The goal for marijuana is federal legalization; the goal for precious metals sales is zero federal taxation.

    To my way of thinking, governments should be forbidden from owning precious metals. Their fiat medium of exchange should “float” against precious metals. That way, they can inflate or deflate at will, and the people who own real money won’t give a hoot.

    • “That way, they can inflate or deflate at will, and the people who own real money won’t give a hoot.”

      this shows a lack of comprehension. remember, bad money drives out good. if fiat money can buy gold then fiat wins.

      • RecoveringPublicEducated | March 15, 2017 at 5:27 pm | Reply

        By the stroke of a pen the competitor (FRN’s) to real money (P.M.’s) was introduced. This can be reversed the same way. P.M.s were coined in this country not that long ago, they can be coined again as mandated by our constitution, plus bills / currency issued from the treasury, as JFK tried, and was a very likely motive for his death.

        • “This can be reversed the same way.”

          in theory sure, in practice no way. the loss of electronic liquidity alone would kill the entire system. gold as money can support a late-19th century economy, barely, and no more. our economy, transitioning to a 19th century version, won’t just gently drift down to the 19th century and stabilize, rather it will rocket all the way down to an 8th century dark ages in no time flat.

  6. how much was the capital gains tax over there

  7. James Papsdorf | March 15, 2017 at 6:14 pm | Reply

    Should Mexico issue Libertad one ounce silver coins, with no specific value stamped thereon, Katie bar the door. With 25% of world silver demand going into coins and bars already, legalization of the Libertad would drive world investment consumption of silver to 50% As anither 25% goes into jewelry, we will be loooking at $100. per oz !

  8. I’m all about Dollars…until you can’t buy oil and other needful things.

    From “Why Gold is Money” Alasdair Macleod..
    “The great Austrian economist, von Mises, wrote that true money had to survive the regression test. Put simply, it must be established whether or not money had value before it was used as money; otherwise it is only a money-substitute which ultimately depends for its value on confidence. So we need to ask ourselves two questions: what value did gold have before it was used as money, and what value did modern currencies have before they were used as money.”

    People have used fiat before and have always returned to Gold and Silver as money. People don’t change, and with the energy dilemma upon us, I feel confident that the age old monies will reassert themselves. Not to say GMAN’s end game won’t occur. I firmly believe it will. The difference is that I believe humanity will continue, and I hope my prodigy and I are able to benefit from the inevitable change. Not to prepare is to accept ones premature end. I don’t accept that outcome. God and Darwinism will divide the winners from the losers.

    • Well said!

      Mises also said, in Human Action 1949, that “All those intent upon sabotaging the evolution toward welfare, peace, freedom, and democracy loathed the gold standard, and not only on account of its economic significance. In their eyes the gold standard was the labarum, the symbol, of all those doctrines and policies they wanted to destroy.”

      Looks like they are getting their way.

    • “Not to prepare is to accept ones premature end.”

      Exactly pd.

    • “God and Darwinism will divide the winners from the losers.”

      I’m pretty sure bullets will play a role in there too somewhere, especially if survivors think you and your prodigies (sic) are benefiting somehow from any of this.

  9. Diogenes Shrugged | March 15, 2017 at 9:15 pm | Reply

    The photograph at the top of the article was a poor choice.
    I assume you all know why.

  10. Havens for physical metals, definitely a step in a better direction, and a friend of commerce long before printing press.

  11. Anything and everything that has utility in and of itself is money.
    A dozen eggs, a gallon of milk or gas, a pair of shoes, a warm coat; g/s have value because of their scarcity so therefore their concentration. Kind of hard to put a dozen eggs in your pocket or store its value for long period of time.
    Paper currency was first just an IOU for a given amount of PM, and the system worked great until it became an IOU for nothing.

  12. What would really be a big deal is if the States would simply follow the US Constitution, specifically Art 1, Sec 10: “No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts;”

    When the legislatures start paying their bills in coin rather than checks/direct deposits that can only be exchanged/withdrawn in cartel ‘notes’, THEN A BIG DEAL WILL HAVE HAPPENED.

  13. So am I reading this right that gold and silver bars are now considered to be legal tender? Currently, the only recognized legal tender gold and silver are the Gold and Silver Eagles. Gresham’s Law will rule the day.

  14. IMO if one of the states became a “gold/silver depository ” and then issued paper certificates denominated in Troy oz, it would become the business center of US.
    It would all depend on confidence and I feel a state could exude that confidence much better than an individual.
    There is also the matter of conflict with those who have profited from printing currency for years.
    A state could fight this battle much better than an individual.

    The temptation to inflate must be controlled with bylaws and many states have shown they have the self control to do this.
    Yes, I realize this is a model of how this country first started and over time it as well might also erode, but it would work for a few generations.
    China is doing this as we speak, should we let them be the only option for honest money?

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