Friday, December 31, 2010

Georgia Legislator's Bill Would Require Taxes Be Paid In Gold And Silver

Bobby Franklin, a Republican state legislator from Georgia, has introduced a new piece of legislation that, if passed, would force Georgians to pay their taxes in gold and silver coins.


Here's what his Constitutional Tender Act sets forth:

Pre-1965 silver coins, silver eagles, and gold eagles shall be the exclusive medium which the state shall use to make any payments whatsoever to any person or entity, whether private or governmental. Such coins shall be the exclusive medium which the state shall accept from any person or entity as payment of any obligation to the state including, without limitation, the payment of taxes; provided, however, that such coins and other forms of currency may be used in all other transactions within the state upon mutual consent of the parties of any such transaction.

ThinkProgress argues such an abrupt return to the gold or silver standard could stagnate the tax-payment process:

Were Franklin's bill ever to become law it would have immediate and catastrophic consequences for Georgia's economy. Among other things, the U.S. Mint simply does not make very many gold and silver coins -- the Mint has even suspended sales of precious medal coins when demand rises above very low levels -- so it is unlikely that enough coins even exist to allow Georgia taxpayers to pay more than a fraction of their tax obligations if they are required to do so in U.S. minted gold or silver.

Read on.

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