Arizona advocates of sound money landed a solid body blow to fiat
currency on May 10 when the state Senate voted 16-13 to end the taxation
on income derived from the purchase and sale of gold and silver.
The bill — HB 2014 — would further bolster the strength of sound money in Arizona by encouraging the use of specie as currency.
Although it seems self-evident, the condition of the U.S. economy, as
(mis)managed by the Federal Reserve, makes it necessary to point out
that it is financially unjust to tax the profit “derived from the
exchange of one kind of legal tender for another kind of legal tender.”
If a person goes to the bank and exchanges a twenty-dollar bill for two
tens, there’s no tax on that transaction. Likewise, there should not be —
and in Arizona soon won’t be — a tax on the exchange of paper currency
for specie — coins containing precious metals.