I don’t quite see how this will reverse Gresham’s Law.
People will tend to hoard “good money”, with it all trickling to those better at keeping it than others - who will end up with mostly “bad money”.
I’m not knocking the attempt, just not convinced it will work out well. I’d rather have the tax-free option than not.
From a reprint of the Dallas Morning News, Jan 1,1900.
(from an article on Jefferson Davis’ release)Page 12.
Salmon P. Chase, Secretary of the Treasury, issued the first greenbacks during the Civil War. When he became Chief Justice of the SCOTUS, he decided the greenbacks WERE NOT LEGAL TENDER and that “Only gold and silver was legal tender or could ever be legal tender.”
So how come I have a pocket full of worthless greenbacks?
Utah passed this law in 2011.
First Substitute H.B. 317
8 General Description:
9 This bill recognizes gold and silver coins that are issued by the federal government as
10 legal tender in the state and exempts the exchange of the coins from certain types of
11 state tax liability.
12 Highlighted Provisions:
13 This bill:
14 . provides definitions;
15 . recognizes gold and silver coins issued by the federal government to be legal tender
16 in the state;
17 . does not compel a person to tender or accept gold and silver coin;
18 . provides that the exchange of gold and silver coins for another form of legal tender
19 does not create any individual income or sales tax liability;