Inflation is Theft: Testimony in support of Arizona Sound Money Bill

Arizona state Rep. Mark Finchem (R-Tucson) sponsored a bill that would eliminate state capital gains taxes on gold and silver specie, and encourage its use as currency. During a Senate committee hearing on his sound money bill, Finchem pointed out that “buying” silver and gold is really nothing more than an exchange of one type of currency for another. Passage of House Bill 2014 would eliminate the penalty for that exchange, encouraging the use of gold and silver as money.

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So, where does that penalty come from? Inflation, as Finchem graphically illustrates. asserting that there has been “this quiet theft going on over time…” he said.

Governments actually take advantage of this theft. Capital gains taxes on gold and silver simply turn inflation into a taxable event, categorizing it as a “gain.”

Finchem goes on to explain that Federal Reserve notes (dollars) really represent a federal government debt.

“So to assume you have been carrying the debt for the federal government for however long, and you move that into real property (silver or gold), that you should suffer a tax consequence for that exchange of currency authorized by the U.S. Constitution, minted by the U.S. mint or printed by the Federal Reserve – until you extinguish that debt, you remain the carrier of debt.”

Source: Tenth Amendment Center

 

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