Arizona bill would remove state tax requirement on sale of gold coins
By GCRU Gold News on Sunday, February 19 2017, 01:46 - Permalink
Arguing that federal policies have made paper money “virtually worthless,” Arizona lawmakers are moving to allow residents to invest in gold coins and not have to pay state taxes on any profits they make when they sell them.
Finchem’s theory of economics and currency, however, is that people buy gold coins not to make money but to keep from losing it in what he says is a flawed federal reserve system where federal reserve notes — the bills we carry in our wallets — actually lose value.
“Let’s say it takes 1,200 of them to buy a U.S. Mint gold coin today, but tomorrow it takes 1,300 of those federal reserve notes,” he explained.
From Finchem’s perspective — and that of House members who gave his measure preliminary approval this past week — selling that coin for $100 more is not a profit.
“You’ve actually experienced a loss,” he said.
“It’s called inflation,” Finchem continued. “The Internal Revenue Service for many, many years has been taxing inflation as though it was a gain.”
All that goes to Finchem’s belief that the American public has been fooled into believing that those greenbacks really are worth something.