Arizona governor vetoes bill making gold, silver legal tender

This is OUTRAGEOUS -- a "Republican" vetoing a bill that (a) would have moved Arizona closer to obeying the U.S Constitution (Article I, Section 10) and (b) would have ended up increasing overall revenue for the State. And why? Because it "would result in lost revenue to the state" and give an "unfair tax advantage" to some businesses that deal in this money.

Gov. Brewer obviously doesn't know anything about (a) the U.S. Constitution or (b) economics.

Oh, and who praised her veto? A leading Democrat, of course.

SHAME.

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(Reuters) - Arizona Governor Jan Brewer vetoed a measure on Thursday that would have made gold and silver legal tender in the state, saying the legislation could have resulted in lost tax revenue.

The Republican-controlled state legislature voted through the measure last month in a response to what backers said was a lack of confidence in the international monetary system.

The bill called for Arizona to make gold and silver coins and bullion legal tender beginning in mid-2014, joining existing U.S. currency issued by the federal government.

"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," Brewer, a Republican, said in an open letter to state Senate President Andy Biggs.

Brewer noted that the "administrative and fiscal burdens" for taxpayers and the revenue department "remain vague." She also cited uncertainty over whether the legislation would have required the state to exempt transactions involving collectable coins and bills that were authorized by Congress and could be used as legal tender.

"This would result in lost revenue to the state, while giving businesses that buy and sell collectable coins or currency originally authorized by Congress an unfair tax advantage," she said.

The push to establish gold and silver as currency has become increasingly popular in the United States in recent years among some hardline fiscal conservatives, with the backing of groups including the Tea Party movement, American Principles Project and the Gold Standard Institute.

Senator Chester Crandell, a Republican and sponsor of the bill, previously said the ability to use gold and silver in everyday life in the state was still a "work in progress" and that more legislation was needed before it could be viable. He could not immediately be reached for comment.

Democratic state Senator Steve Farley, an opponent of the measure who had warned it could create massive problems for businesses and government officials trying to administer what would in effect be a dual monetary system, welcomed the veto.

"I was very pleased the governor showed the common sense to realize this was a terrible move for Arizona that would have caused incredible negative consequences at a government and business level," Farley told Reuters.

Had Brewer signed the measure, Arizona would have become the second state in the nation to establish the precious metals as legal tender. Utah approved such legislation in 2011.

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AZ Bill making gold legal tender sent to Gov. Brewer

By CRISTINA SILVA
Associated Press

PHOENIX (AP) - A bill allowing people to use gold and silver as legal tender is heading to Gov. Jan Brewer's desk.

The GOP-led Senate gave final approval to the bill that could make Arizona the second state in the nation to recognize gold and silver as legal tender. If signed into law by Brewer, the measure would take effect in 2014.

The state Department of Revenue opposed the measure and it passed in the House only after an amendment was added to exempt the department from having to accept gold or silver as tax payments.

The Senate had previously passed Senate Bill 1439, but it was sent back for final approval after the House amendment passed.

The measure reflects a growing distrust of government-backed money amid the declining value of the dollar.

Send a message encouraging Gov. Brewer at http://www.azgovernor.gov/Contact.asp to sign this bill into law and help restore sound money in Arizona -- and America!

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Arizona gold bill moving forward

PHOENIX -- A bill that would make gold and silver legal tender in Arizona has passed both the Arizona Senate and the Arizona House of Representatives.

"All this bill does right now is put into place the language to recognize gold and silver coin as legal tender," said Sen. Chester Crandell, the Heber Republican who authored the bill.

The state Department of Revenue has refused to back the bill, but the Arizona House passed an amendment to the bill ensuring that the Department of Revenue would not have to accept gold and silver as payment. Crandell must approve the amendment before it goes to both houses for a final reading then to Gov. Jan Brewer for signing.

Crandell said the bill would remove the commodities tax currently in place for gold and silver.

"This gives a lot of opportunity for those who would like to use an alternative method of payment," Crandell said.

The current bill only has language in place to add gold and silver as legal forms of currency. It does not include instructions for how merchants would accept payment, though Crandell said it would not necessarily mean that customers would have to lug around gold coins.

"I don’t think we need to go back into the dark ages and everybody has to take their gold coins to the store," Crandell said.

Instead, he said he envisions a system where private companies hold the gold and silver and issue credit or debit cards for people to use.

Arizona Democratic Sen. Steve Farley opposed the bill.

"I’ve looked at some of the charts of the value of gold and silver over time and they are anything but stable," Farley said. "In the 19th century when we had private mints we had counterfeiting problems, depressions, bank runs, and people buying up all the gold coins and cornering the market."

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