Skip to comments.Arizona Governor vetoes gold and silver legal tender bill
Posted on 05/03/2013 8:37:18 AM PDT by bkopto
Arizona Gov. Jan Brewer Thursday vetoed Senate Bill 1439 which would have made Arizona the second U.S. state to recognize gold and silver as legal tender.
In a letter to Arizona State Senate President Andy Biggs, Brewer said, While I believe the concern over a devalued dollar as a result of an unsustainable federal deficit is justified, I am unable to support this legislation.
I believe the provisions in this legislation need to be more carefully examined and there should be prior coordination with those government agencies tasked with the oversight of these transactions, she stressed.
See also: Navigating gold, silver legal tender isnt for the faint of heart
For example, it is unclear whether this legislation would require Arizona to exempt income tax related to a transaction involving collectable coins or bills that were originally authorized by Congress and may be used as legal tender, Brewer said. This would result in lost revenues to the state, while giving businesses that buy and sell collectible coins or currency originally authorized by Congress an unfair tax advantage.
State Senator Chester Crandell, the bills sponsor, said the ability to use gold and silver is still a work in progress and that more legislation would be needed before it could be viable.
The Arizona Legislature could chose to over-ride the governors veto of SB 1439. However, a 2/3 vote is required by each chamberHouse and Senateto over-ride her veto. However, the Republican controlled Senate only approved the measure by an 18-10 vote.
The governors veto means that Utah remains the only U.S. state which has approved gold and silver as legal tender. However, similar bills are advancing in several states.
I don’t know. I’m not ready to condemn right now. I’m still dealing with the very sneaking suspicion that we, these United States and the rest of the gold and silver investors, actually have a stakehold in REAL gold and silver that actually EXISTS.
Brewer ALWAYS has been a BIG-Talkin JOKE!
I don't think so. I think she's not willing to sign off on a half-assed, poorly thought-out piece of legislation that could have all sorts of unforseen ramifications. Go back and do it properly and I have no doubt she would sign it.
From the limited info in the article, it sounds like Brewer said, "I'm not saying 'no'. I'm just saying 'no' to the bill as it's written. Go back and try again."
If it's crafted so that AZ will be at a disadvantage to other states, then she was probably correct to veto it, good idea or not.
Brewer is good on National and Border Security.... but was Obama Supporter on the Eligibility issue....and now too close to the current failed economic system
See my post #5. GMTA
She is not to be trusted. I live here. No one trusts here around here.
That said, all the red states need to do this as a one shot. One state here and there just gives the media time to gin up propaganda and Obama to issue his edicts...which the GOP in turns plays around over instead of hammering the bastard on his impeachable actions.
States can’t mint money anyway.
I think Obama got to Brewer before the bill did.
Minting ain’t what this is about. It’s about recognizing gold and silver as money. Go back and read the Constitution; the States shall recognize nothing but gold and silver as money. It’s already in there, but like everything else, they’ve papered over the Constitution with laws (Federal Reserve Act), and this is an attempt to reverse that.
hmmm....I think that us mint gold and silver eagles are legal tender ( gold eagle has a $50 face value and the silver eagle $1) Perhaps this legislation would allow gold and silver to be used as currency based upon the spot price of gold.
Of course anyone would be crazy to use a gold or silver eagle at face value for a purchase, and I doubt many of the public school educated retail workers would even recognize an actual gold or silver eagle should they be presented with one.
Which raises the point how could retailers be sure that the gold and silver they were being offered was the real deal not convincing knock offs from ebay.
In the last month or two alone gold has gone over $1600 and ounce before dropping under $1400 an ounce and it's currently about $1460. So then how do I as a merchant price my goods when the value of the commodity used to pay for it fluctuates by the minute?
Or currency backed by gold and silver...which was a slick way to get around gold and silver currency.
Funny thing, those who think US Grant was a real bastard dont read what he did concerning legal tender. Or Andrew Jackson for that matter. Or, several other presidents who declared a national bank unconstitutional, which is the real culprit in these matters.
Congress is supposed to set the value. Which raises another point, who the hell wants congress to do anything these days?
How can Congress do that when the value is set by the commodities market in New York, Chicago, and around the world?
You could price it in gold weight, understanding that the height of the stack of Federal Reserve paper meant to be an equivalent will vary day by day.
For example, a pair of Nike Air Jordan shoes costs 1/10 ounce of gold. Customers can either give you a 1/10 ounce gold coin, or use an exchange machine at the counter to figure our how high a stack of paper is required that day.
By the time a Zimbabwe-style trillion dollar note is required to pay for the Air Jordans (probably around May, 2018) you'll be glad your customers are already used to gold weight pricing. :)
That may be a good policy or a bad policy, but don't pretend this bill would have done anything but that. As for the merits, I think this fails. Economists will tell you that sales tax exemptions distort the economy and that the best system of taxation is broad but low tax.
Read your constitution for gods sake.
You wouldn't and this bill wouldn't force you to either. However if you wanted to exchange a commodity for gold, you can do so in any jurisdiction today without enabling legislation.
So what does this bill do? Nothing. Except exempt gold and silver coin dealers from state sales tax. Which is a weird thing to do.