Arizona ends taxation on purchase & exchange of gold and silver coins
Goldbully
Posts: 18,014 ✭✭✭✭✭
The Governor of Arizona Doug Ducey has signed into law a bill which removes all state income tax on precious metals coins. The measure was passed in the Arizona Senate on May 10 by a margin of 16-13.
When people buy gold or silver to protect themselves against the devaluation of America’s paper currency, they frequently end up with a “gain” when exchanging the metal back into dollars.
However, this is not necessarily a real gain, regarding purchasing power. This “gain” is often nominal because of the slow but steady devaluation of the dollar. The government nevertheless assesses it as a gain for tax purposes.
The bill, called House Bill 2014, was introduced by Republican Mark Finchem who insisted that taxing exchanges of "legal tender" like gold coins is a tax on money.
"As transmitted the bill provides for the tax-neutral treatment of a very limited class of collectibles, using narrowly defined language," Ducey said in a written statement. He and his predecessor Jan Brewer have vetoed three similar bills.
It is a major win, say gold proponents.
“Every supporter of free markets should cheer Arizona’s passage of HB 2014. There is no more justification for forcing individuals to use government created money than there is for forcing them to drive government manufactured cars. In fact, as the Federal Reserve’s 114 years of failure shows, giving monopoly control over our money supply to a secretive central bank is the most dangerous form of government intervention," said Ron Paul, former Congressman from Texas and Campaign for Liberty Chairman.
"By allowing the people of Arizona to use an alternative to Federal Reserve-created fiat currency, HB 2014 will help the people of Arizona survive the next Federal Reserve-created recessions. Passage of this bill will also help make Arizona more attractive to the growing number of people seeking alternatives to fiat money in order to protect themselves, their families, and their business from the effects of Federal Reserve policy. Thus, this bill will help attract new investments and jobs to Arizona," he said.
Comments
This is a step in the right direction. Ever wonder why the government likes inflation? Because it creates capital gain tax. I would wager more than 90% of capital gains is simply due to the loss of value of the dollar. I wish someone would challenge this as Capital Gains Tax is by that theory double taxation!
Am sure there's a small contingency of citizens (federal, not American) who are unhappy with this decision.
``https://ebay.us/m/KxolR5
It makes no sense to tax numismatics (money) or precious metals. If anything the government should incentivize the trade in quality collectibles with a historical basis.
Bottom line : the juice costs more than the fruit, after all the squeezing.
``https://ebay.us/m/KxolR5
i wish massatwochits would do that as well. just saying
Wit Cha.....
Awesome ... !!!
Coin Club Benefit auctions ..... View the Lots
Certainly a step in the right direction... but we have miles to go....Cheers, RickO
There is no sales tax on silver, gold, and numismatic items in Arizona.
This is a bill that does very little. It is very difficult to prove capital gains on bullion, or to put it differently, it is very easy to fudge your gains to avoid the capital gains tax. This just relieves the burden of proof of gain/loss on the owner of the bullion.