Return to the gold standard? Precious metals become legal currency in Arizona, USA

return to the gold standard? Precious metals become legal tender in Arizona, USA. Arizona legislation passed to exempt gold and silver from income tax. This means that in the state, precious metals have become...

Arizona legislation passed to exempt gold and silver from income tax. This means that in the state, the precious metal has become a legal currency alongside the U.S. dollar.

On Wednesday, the Arizona Senate voted 16-13 to approve the elimination of all taxes on precious metals in the state. The bill will go to Governor Doug Duccey for his signature.

House Bill 2014 was introduced by Rep. Mark Finchem (R-Tucson). The bill seeks to allow Arizona taxpayers to exclude precious metals-related gains and losses from their federal tax calculations of Arizona Adjusted Gross Income (AGI).

The Sound Money Defense Alliance, former US presidential candidate Ron Paul, and the liberal movement helped ensure the passage of HB2014. They felt the plan could break the Fed's monopoly on the money supply.

Jp Cortez, deputy director of the Sound Money Defense Alliance, believes that because the Federal Reserve's monetary policy causes inflation, taxpayers need to hold gold to combat the depreciation of banknotes. When they exchange gold for dollars, they make money. However, considering the actual purchase parity, they may not actually make a profit. What they are making is nominal profit because the dollar is slowly and continuously depreciating.

> Stefan Bleason, director of the Sound Money Defense Alliance, said Arizona is guiding everyone to defend their pocketbooks so that citizens can protect their wealth when the Federal Reserve's abusive policies lead to inflation and financial crises. Ron Paul said:

>HB2014 is an important and timely legislative document. The Fed's failure to revive the economy from the last crisis with historically low interest rates is a sign that the dollar will soon collapse. It is therefore imperative to pass a bill aimed at protecting citizens’ use of alternative currencies against banknotes that are about to become worthless.

As previously mentioned in gold headlines, in mid-March, the Republican-controlled Idaho House of Representatives overwhelmingly approved the elimination of capital gains tax and income tax on precious metals. If approved by the Senate, local gold and silver will gain almost the same currency status as the U.S. dollar in the future.

According to current U.S. federal law, the sale of physical gold is ultimately subject to capital gains tax, which is a tax on the appreciation of gold calculated in U.S. dollars. In the view of some Republicans, this is not?#36164;capital gain?#65292;but a devaluation of the currency caused by the Federal Reserve's artificial indiscriminate issuance of currency.

Other states, including Utah and Oklahoma, are also taking action to eliminate income taxes on precious metals. Other states will rebate the sales tax on precious metals or set up precious metal escrow to help citizens store and trade precious metals.