PHOENIX, Ariz. (April 26, 2016) – Yesterday, the Arizona House passed a bill that would help “legalize the Constitution” by defining gold and silver specie as legal tender and encouraging their use as currency..
Sen. David C. Farnsworth and Rep. Doug Coleman, along with seven cosponsors, introduced Senate Bill 1141 (SB1141) on Jan. 19. The legislation defines specie (gold or silver coin, bar or round) as constitutional legal tender to establish it for use in the marketplace as currency. It reads, in part, “Legal tender is money and is not subject to regulation as property other than money – meaning it would not be taxed at the state level.
The amended language tightens the definition of “specie” to exclude coins or bars that make up some part of jewelry or that is valued based on historic or collectible significance.
The legislation defines specie (gold or silver coin, bar or round) as constitutional legal tender to establish it for use in the marketplace as currency
The legislation broadens the definition of “legal tender” beyond only Federal Reserve Notes.
“Legal tender” means a medium of exchange, including sepcie, that is authorized by the United States constitution or Congress for the payment of debts, public charges, taxes and dues.
“Specie” means gold or silver coin, bar or round.
A STEP FORWARD
Passage of SB1141 would allow Arizonans to deduct the amount of any net capital gain included in federal adjusted gross income derived from the exchange of one kind of legal tender for another kind of legal tender or specie from their state income tax, In other words, individuals buying gold or silver, or utilizing gold and silver in a transaction, would no longer be subject to state taxes on the exchange.
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 SB1141 would allow Arizona residents to secure the purchasing power of their money.
“This isn’t going to end the fed’s monetary monopoly overnight, but it sets the foundation and opens the door for more market activity by the people,” Tenth Amendment Center executive director Michael Boldin said. “This is an important part of the overall strategy, and activists in Arizona should continue working to get both bills passed.”