Arizona Governor Vetoes The Gold & Silver Legal Tender Bill

While we reported earlier this week that Arizona was as good as ready to adopt gold and silver as legal tender, after the Senate voted 18-10, it now appears that Arizone Governor Jan Brewer vetoed.

In a letter to Arizona State Senate President Andy Biggs, the governor wrote:

“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. I believe the provisions in this legislation need to be more carefully examined and there should be prior coordination with those government agencies tasked with the oversight of these transactions.

It is important to note that the administrative and fiscal burdens for both the taxpayers and the Departement of Revenue remain vague. For example, it is unclear whether this legislation would require Arizona to exempt income tax related to a transaction involving collectable coins or bills that were originally authorized by Congress and may be used as legal tender. This would result in lost revenues to the state, while giving businesses that buy and sell collectible coins or currency originally authorized by Congress an unfair tax advantage.”

Mineweb reports that The Arizona Legislature can potentially over-ride the governor’s veto with a 2/3 vote of the House and Senate.

Reuters adds to it:

“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.”

So for now Utah remains the only state in the US to adopt gold and silver as legal tender.

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