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 says in the Constitution how to assay a gold bar someone bought in to pay taxes with? What part?
“ You give the clerk a silver bar worth $1000 for tax bill of $875. What do you get for change?L
Smaller pieces of silver. They’re called “quarters and dimes”. Maybe you’ve heard of them.
Geez, some people around here are really, really stupid.
L
And above that, there is the prohibition of states "coining" money.
Most they can do now, is stop taxing sales of gold and silver within their state, according to how I read it.
I don't like it, but isn't that what the Constitution says?
You’re either really dumb or deliberately obtuse.
Personally I’m going with option A.
L
So that means all offices and businesses have to have enough gold and silver bullion coins to make change with. How about thinking first before spouting off some snarky stupid.
Try reading the whole thing sometime.
“Congress shall have the power to COIN money AND to regulate the value thereof.”
Them Founders were some pretty smart fellers.
L
“So that means all offices and businesses have to have enough gold and silver bullion coins to make change with.
Congratulations! You get it.
You can have a cookie.
L
Them Founders were some pretty smart fellers.
Okay, I agree with ALL that. But, I'm missing the part where states can "coin" money. To coin money, some value has to be attached. I forgit what the face value of my gold eagles are, let's just say $50. I'm not paying my land tax with those at $50 each.
Well...I learned today that the gmae Monopoly is racist, so there!
“But, I’m missing the part where states can “coin” money.”
They can’t. Go READ the Constitution. The Framers laid it our very clearly in black and white.
Geez....
L
So genius, tell everyone what the value of those bullion coins will be that they make change with. Let’s start with a $10 dollar gold coin.
They make bullion quarters and dimes? You learn something new from geniuses every day.
“They make bullion quarters and dimes?”
They did until 1964. 90% silver. Today they make 1/4 oz and 1/10 oz rounds, .999 fine in both silver and gold.
Idiot.
L
“Let’s start with a $10 dollar gold coin.”
I’ll take “10 dollars” for a thousand, Alex.
Idiot.
L
“ How did they pay taxes when gold and silver were money? Oh, that’s right, they didn’t.”
****************&
Will be interesting to see how Bitcoin will be taxed.
I posted part of it.
And neither can the states make anything legal tender, except the gold and silver "coin", that being US minted government coins.
However, what's to keep states from accepting chickens, if they want, for payment of taxes, etc...
What's to keep businesses from doing the same?
Basically, it would seem, states aren't allowed by the Constitution to force anyone to use money they themselves deem to be money.
Other than that, what restrictions are there for states and individuals to use whatever form of payment they desire for their own services as rendered?
If Congress, the Judiciary, and Executive branch can get creative in establishing a health insurance tax, surely the fifty states and 300 million Americans can get creative in finding others things of value for use in transactions?
“However, what’s to keep states from accepting chickens, if they want, for payment of taxes, etc...”
Um, the Constitution. Once again, it’s right there in black and white. Go see if you can find it.
L
Huzzah!
You have it all figured out. We just make believe it's 1964 or before. What a plan.
Today they make 1/4 oz and 1/10 oz rounds, .999 fine in both silver and gold.
What are the value of those, if a state agency gives you one as change?
You get no change. They apply it to your NEXT tax bill.
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