Posted on 02/22/2021 12:45:11 PM PST by amorphous
A bill introduced in the Kansas House would recognize gold and silver specie as legal tender and repeal all taxes levied on it. The legislation would pave the way for Kansans to use gold and silver in everyday transactions, a foundational step for the people to undermine the Federal Reserve’s monopoly on money.
The Federal Reserve is the engine that drives the most powerful government in the history of the world. Ron Paul popularized the slogan “End the Fed,” but Congress is nowhere near abolishing the central bank. It can’t even come up with the will to audit the Fed.
Even though state action can’t end the Fed, there are steps states can take that will undermine the Federal Reserve’s monopoly on money. By passing laws that encourage and incentivize the use of gold and silver in daily transactions by the general public, policy changes at the state level such as the Kansas Legal Tender Act has the potential to create a wide-reaching impact and set the foundation to nullify the Fed’s monopoly power over the monetary system.
A coalition of four Republicans introduced House Bill 2123 (HB2123) on Jan. 25. The legislation would make gold and silver legal tender in the state, recognizing it as a medium of exchange for the payment of debts and taxes. In effect, gold and silver specie would be treated as money, putting it on par with Federal Reserve notes in Kansas.
Under the proposed law, “Legal tender” means a recognized medium of exchange for the payment of debts and taxes. Specie legal tender would be defined as:
(a) Specie coin issued by the United States government at any time; or (b) any other specie that a court of competent jurisdiction, by final and unappealable order, rules to be within state authority to make or designate as legal tender
By allowing the court to designate additional specie to be used as legal tender, Kansas could free its citizens from potential supply constraints imposed by the use of only United States minted gold and silver coin. More importantly, the people of the state of Kansas would be able to define what specie is considered constitutional tender, further distancing themselves from potential control of their competing currency by Washington D.C.
Practically speaking, the passage of HB2123 would allow residents to use gold or silver coins to pay taxes and other debts owed to the state. In effect, it would put gold and silver on the same footing as Federal Reserve notes.
HB2123 would also repeal property and capital gains taxes on gold and silver.
“No specie or legal tender shall be characterized as personal property for taxation or regulatory purposes.”
Passage of this bill would build on a foundation set in 2019 when Kansas repealed the sales tax on gold and silver.
Kansas could become the fourth state to recognize gold and silver as legal tender. Utah led the way, reestablishing constitutional money in 2011. Wyoming and Oklahoma have since joined.
KNOCKING DOWN BARRIERS
Taxes on gold and silver erect barriers to using gold and silver as money by raising transaction costs. HB2123 would exempt gold and silver bullion from state capital gains taxes. Passage of this legislation would eliminate a barrier to investing in gold and silver. It would also make it more practical to gold and silver in everyday transactions, a foundational step for people to undermine the Federal Reserve’s monopoly on money.
In effect, states that collect taxes on purchases of precious metals act as if gold and silver aren’t money at all.”
Imagine if you asked a grocery clerk to break a $5 bill and he charged you a 35 cent tax. Silly, right? After all, you were only exchanging one form of money for another. But that’s essentially what South Carolina’s capital gains tax on gold and silver bullion does. By eliminating this tax on the exchange of gold and silver, South Carolina would treat specie as money instead of a commodity. This represents a small step toward reestablishing gold and silver as legal tender and breaking down the Fed’s monopoly on money.
“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 during testimony in support an Arizona bill that repealed capital gains taxes on gold and silver in that state. “Paper is not money, it’s fraud,” he continued.
LEGALIZING THE CONSTITUTION
Passage of HB2123 would effectively legalize the US Constitution in Kansas.
The United States Constitution states in Article I, Section 10, “No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts.” Currently, all debts and taxes in South Carolina are either paid with Federal Reserve Notes (dollars) which were authorized as legal tender by Congress or with coins issued by the US Treasury — very few of which have gold or silver in them.
The Federal Reserve destroys this constitutional monetary system by creating a monopoly based on its fiat currency. Without the backing of gold or silver, the central bank can easily create money out of thin air. This not only devalues your purchasing power over time; it also allows the federal government to borrow and spend far beyond what would be possible in a sound money system. Without the Fed, the US government wouldn’t be able to maintain all of its unconstitutional wars and programs.
Passage of HB2123 would reestablish gold and silver as legal tender in the state and take a step toward that constitutional requirement, ignored for decades in every state.
It would also begin the process of abolishing the Federal Reserve system by attacking it from the bottom up – pulling the rug out from under it by working to make its functions irrelevant at the state and local levels, and setting the stage to undermine the Federal Reserve monopoly by introducing competition into the monetary system.
Constitutional tender expert Professor William Greene said when people in multiple states actually start using gold and silver instead of Federal Reserve Notes, it would effectively nullify the Federal Reserve and end the federal government’s monopoly on money.
“Over time, as residents of the state use both Federal Reserve notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve notes do will lead to a “reverse Gresham’s Law” effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve notes). As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the state’s treasury, an influx of banking business from outside of the state – as people in other states carry out their desire to bank with sound money – and an eventual outcry against the use of Federal Reserve notes for any transactions.”
Once things get to that point, Federal Reserve notes would become largely unwanted and irrelevant for ordinary people. Nullifying the Fed on a state-by-state level is what will get us there.
It'd be great if the states took over ALL responsibility for social security and other subsistence guarantees as well as the money.
States need to once again assume their Constitutional responsibility as a barrier between an all seeing, tyrannical central government and individual citizens.
Especially now that psychopath despots are in complete control of our central government. How the hell did that happen???
Gold and silver is already legal tender in all 50 States. It’s right there in the Constitution.
L
Actually, the Constitution already requires that the States use only gold and silver coin to pay their debts. They should not be able to legally use Federal Reserve Notes already.
I thought this was a case as well, the other point to consider is, no one is going to walk around with gold coins in their pocket to pay for goods and services....
Let’s say you had a $20 gold coin and bought some whiskey with it....the gold melted down and sold would be worth many time over the $20 face value, why in the world would someone do that...
I don’t people have thought this through...
So you want to pay your property taxes with a bar of gold or silver. How does the clerk at the county office know that it is legit or the purity? They don’t, they have no expertise. What spot price do they use?
More amateur hour feel good stuff...
This will be labeled as racist & sexist, since 99% of silver & gold bugs are white men.
How did they pay taxes when gold and silver were money? Oh, that’s right, they didn’t.
Because a debauched fiat fake currency is what results in confiscatory taxes.
If people are serious about using gold as a unit of exchange at this point, it’d have to be done on a weight basis, not a face value, e.g., I’m going to pay you 10 ounces of gold to remodel my kitchen. Assigning a face value tied to the Fed’s funny money utterly defeats the purpose.
Gold AND sliver.
One ounce of silver at spot price is about $28. Bottle of decent whisky, about $28. Problem solved.
L
Back then people had bullion gold and silver coins and used them like we use coins today. Plus there was wide spread expertise in gold and silver.
You give the clerk a silver bar worth $1000 for tax bill of $875. What do you get for change?
Article 1, Section 10:
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it's inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress.
No State shall, without the Consent of Congress, lay any duty of Tonnage, keep Troops, or Ships of War in time of Peace, enter into any Agreement or Compact with another State, or with a foreign Power, or engage in War, unless actually invaded, or in such imminent Danger as will not admit of delay.
Numismatic value probably far exceeds melt value of gold coins.
Using gold and silver as money is not something new. They were used before government notes. Look at how people used gold and silver and you will have answers to all your questions.
It’s right there in plain language. Gold and silver.
Then there’s the whole “emit bills of credit” thingy.
L
Its interesting that one of the first parts of the Constitution to be ignored was the “money” part of it - after that, the rest has been slowly and steadily trampled or destroyed. Once you have fake, fiat, printed money - its easy for government to pay for any statist, social-engineering scheme it wants.
Try actually reading the Constitution sometime.
L
Those people have been dead for 100 years and the practical daily use tools and and practices they used too.
Daily Bell: "What do you think of Chief Justice Roberts’s decision regarding Obamacare?"Edwin Vieira: "Very little that is fit to print. It is an abomination, if I may be allowed a juxtaposition of letters in order to make a play on words. Roberts held that the so-called "individual mandate" in "Obamacare" — the supposed requirement for Americans to purchase health insurance which they do not want, or be penalized for their refusals — could not be sustained under the Constitution’s Commerce Clause or its Necessary and Proper Clause. Fine. That means that no substantive constitutional power exists that can rationalize that provision in "Obamacare." But then he opined that, notwithstanding the absence of any such substantive power, "the individual mandate" can be enforced as a "tax." What is the result of this aberrant reasoning? Namely, that Congress may, through the imposition of a "tax," coerce Americans into behaving in any manner whatsoever, even though it admittedly enjoys no particular power to require such behavior. Furthermore, as we know, taxes are often enforced not only by the confiscation of money or other property but also by imprisonment. So the bottom line is that Congress can provide for the imprisonment of any and every American who refuses to obey any Congressional command to behave in a certain manner, even though Congress has no independent power whatsoever to require such behavior!
"Obviously, this is far worse than the constitutionally crackpot notion that Congress can "regulate commerce" by coercing Americans to engage in "commerce" against their wills; for at least some forms of personal behavior do not constitute "commerce" (or even, to use the judiciary’s gibberish, "affect commerce") by anyone’s definition, and therefore could never be subject to such a ludicrous misconstruction of Congressional power. Roberts’s "tax" theory, in contrast, embraces every conceivable form of behavior known to man, all of which can be compelled by the imposition of some "tax," and in the final analysis by imprisonment. Thus, appealing to just one clause of the Constitution (Article I, Section 8, Clause 1), Roberts has concocted a rationalization for a complete totalitarian state! Even Alexander Hamilton, the most consistent and candid centralizer among the Founding Fathers, would have repudiated this theory in no uncertain terms. Even Stalin, I suspect, would have been surprised (albeit pleasantly) to discover that the power to tax, by itself alone, could be so employed. If this is not a perfect illustration of the utter imbecility of "judicial supremacy" — the notion that decisions of the Supreme Court control the meaning of the Constitution — nothing could be."
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