Arizona, Wyoming, Alabama… one by one, states across the nation are adopting new legislation aimed at recognizing gold as legal tender.
Currently, gold is defined as a store of value- it cannot be exchanged in marketplaces, and high taxes, transfer and vaulting fees make it impossible to transport or use.
But as new laws and technology emerge, the gold industry will force policymakers and the federal government to adapt or forego significant profit.
First, a little context.
Arizona and House Bill 2014: “Legal Tender Exchange; Tax Effect”
Last May, Arizona Gov. Doug Ducey signed House Bill 2014 (HB2014), a new bill promoting removing state capital gains taxes for gold, promoting it as an alternative currency.
Introduced by Rep. Mark Finchem (R-Tucson), the bill removes capital gains taxes on “income derived from the exchange of one kind of legal tender for another kind of legal tender”. In the language of the bill, legal tender “[includes] specie”, coins made of precious metals.
Previous attempts were made in 2013, 2015, and 2016, but were all vetoed by Governor Jan Brewer and Doug Ducey. Ultimately HB2014 was approved by a 16–14 vote.
“We ought not to tax money — and that’s a good idea. It makes no sense to tax money,” former U.S. Rep. Ron Paul said in support of HB2014. “Paper is not money, it’s fraud.”
The bill’s passage marks one of the most significant steps towards challenging the monopoly of federal currency.
Three More States
2018 saw more states join the new gold movement. In March, Alabama Governor Kay Ivey signed a law that also removed sales and use tax on gold and silver bullion.
Senator Tim Melson (R-Florence) sponsored the bill, known as Senate Bill 156. The bill passed the House by a 100–0 vote, and the Senate approved the measure by a 26–9 vote. The bill will take effect on June 1.
Kansas’s bill, HB2421, exempted precious metals bullion from state sales and use tax. The House Taxation Committee passed the bill on March 8.
In Wyoming, House Bill 103 (called the “Wyoming Legal Tender Act”) defines gold as “legal tender”, prohibiting additional taxes imposed on it. The bill was passed on March 14.
The Philosophy Behind Untaxed Gold
The ultimate goal of removing taxes on gold and silver is to encourage the use of precious metals in investment and exchange. Instead of being charged for exchanging currency for gold, people should have the freedom to choose.
In Article I, Section 10, the United States Constitution clearly states “No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts.”
Yet the federal government has continued to ignore this section and imposed taxes on precious metals, treating it as a commodity than a legitimate alternative currency. These new laws are the first bricks laid in the foundation towards an alternative medium of exchange.
The Need For Alternatives Like Quintric
There’s a new kind of technology that could ultimately aid in the movement: cryptocurrency.
As other businesses focus on using blockchain for various causes or developing the next big altcoin, Quintric is concerned about *value. *The team believes that the best crypto token is one backed by something with inherent value, and with little volatility.
That’s why they made Quintric backed by U.S. gold and silver.
Unlike other cryptocurrencies which are largely digital and speculative, Quintric is the only token to base its value on a real, tangible alternative to currency- precious metals.
While Quintric is in its early phases, the gold industry’s new movement may be accelerated by the promise of rapid innovation such as cryptocurrency. Keep an eye out for other state legislation involving the removal of specie tax. We could be witnessing a true monetary revolution within our lifetime.
Learn more about Quintric on their website or sign up for a Quintric account here...
The author is not an attorney or financial advisor. The author would like readers to note that he is a co-founder and board member at the Quintric. None of the content presented should be construed as investment advice or as legal advice.
Story originally posted on here on Medium.com