• filter:

Why Arizona choosed only gold as legal tender?

  • Page :
  • 1
  • Text Only
  • Search this Topic »
Voting History
rated:
Here is the article

http://realmoney.thestreet.com/articles/05/25/2017/return-tender-why-arizona-and-other-states-are-choosing-gold 

The bill signed into Arizona law by Governor Doug Ducey this week will make gold and silver "legal tender" starting Aug. 9, as many states return to our constitutional roots. The United States Constitution states in Article I, Section 10, "No state shall...make anything but gold and silver coin a tender in payment of debts
---------------------

What is going on here? Why are they shy of US dollar?

Member Summary
Staff Summary
Thanks for visiting FatWallet.com. Join for free to remove this ad.

rated:
Ehhh. If they were really shy of the dollar they'd stop accepting it for property tax payments, right?

Seems like a conservative "feel good" bill.

rated:
I agree with Stubtify. A US ASE is already considered $1 legal tender, anyway. Nothing really new here. Same as going to another country and using the exchange rate.

rated:
Awesome, now all those crummy silver eagles are worth a dollar!

rated:
I'm glad crazy people are passing laws in arizona.

rated:
This is the real reason.

"The actual laws being passed by these states are very simple. They recognize gold and silver as currency and therefore it is free from taxation. So when a citizen buys precious metals and over time they appreciate in value against the dollar, it is not viewed as a capital gain and is therefore not taxed.

Investment gains are always taxed in one way or another, but gold and silver are "money" and imposing a tax on the exchanging of one form of money for another is unjust and unwise."

rated:
"a solution in search of a problem"

rated:
Sorry, but I just can't get beyond "choosed" in the title.

rated:
Probably bought and paid for by arizona's retail gold dealers.

rated:
TravelerMSY said:   This is the real reason.

"The actual laws being passed by these states are very simple. They recognize gold and silver as currency and therefore it is free from taxation. So when a citizen buys precious metals and over time they appreciate in value against the dollar, it is not viewed as a capital gain and is therefore not taxed.

Investment gains are always taxed in one way or another, but gold and silver are "money" and imposing a tax on the exchanging of one form of money for another is unjust and unwise."

 Does this imply that in AZ, forex trading is now free from taxation?

rated:
I was just going to say, probably for tax advantage purposes.

rated:
TravelerMSY said:   This is the real reason.

"The actual laws being passed by these states are very simple. They recognize gold and silver as currency and therefore it is free from taxation. So when a citizen buys precious metals and over time they appreciate in value against the dollar, it is not viewed as a capital gain and is therefore not taxed.

Investment gains are always taxed in one way or another, but gold and silver are "money" and imposing a tax on the exchanging of one form of money for another is unjust and unwise."
 

  
This would also mean that if (or when) gold goes down in value, that you can't claim an investment loss.

rated:
TravelerMSY said:   Probably bought and paid for by arizona's retail gold dealers.
  "David Yoe Williams Jr. is a principal at Strategic Gold, a Naples, Fla.-based firm that buys and stores physical gold for investors."
 

rated:
So let's see - cryptocurrencies or virtual currencies like Bitcoin, which were intended to be, well, currencies - are considered by the IRS as of a couple years ago to be "property", thus subject to capital gains (and losses, one assumes).  But gold and silver, which many, many years ago were currency but not since Nixon took us off the gold standard in the 70's, are apparently considered to be currency again, at least in in Arizona, and thus not subject to capital gains or losses?
 
It's Friday - I need a drink.  Wake me up when the "I'm a sovereign nation all unto myself, therefore I owe no taxes at all, to anybody" position has been shown to work with the IRS.  I can get behind that!  
 

rated:
High risk of sunstroke in Arizona.

(or high riskering of sunstroke in Arizona)

rated:
As far as taxation goes, are we talking about AZ state tax or federal tax? AZ can pass laws to change tax rules for AZ state taxes. Which is fair if AZ wants to do that. But AZ law won't impact how the IRS treats gold.

rated:
Bit coins will be next.

  • Quick Reply:  Have something quick to contribute? Just reply below and you're done! hide Quick Reply
     
    Click here for full-featured reply.


Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2017