If Rep. Phil Hart, R-Athol, has his way, Idahoans could soon be able to pay their taxes with silver medallions produced in the state of Idaho.
Hart said the bill serves several purposes, including creating jobs in Idaho, as well as giving citizens in the state a way to store wealth in what he believes is a more stable form of currency. Hart said that though the U.S. Constitution dictates that the government should use nothing but gold or silver for public currency, the federal government has essentially left that provision “in the rear view mirror.” The bill would give the state treasurer the ability to work with silver processing companies to develop a state medallion that the state would then be forced to accept as payment for taxes.
That, Hart believes, could bring hundreds, if not thousands of job to the state. In conjunction with the creation of the medallion, Hart’s bill would also try to lure silver processing companies to Idaho, and in particular, north Idaho, which, according to Hart, was once called “the silver capital of the world.” The bill would give companies that come to Idaho to process silver for the medallion a 10-year exemption from income taxes, as well as property taxes. The exemption would be open for 20 years and would sunset after that period of time.
The bill could also serve a third purpose that would be beneficial to the environment in the Kellogg area. Hart said that 14 years ago, the Environmental Protection Agency (EPA) put highly toxic material left over from the Bunker Hill Mine in what he called a large “plastic baggy.” The material inside is a silver-like substance that Hart says could be used in producing the medallion, which has an estimated worth of $200 million. The state owns that material and needs to deal with it soon because there is concern that the “baggy” is beginning to corrode and wear thin, which, if it happens, would negatively affect the water table of the area.
The coin would not have a face value determined by the state, however, because Hart believes that would violate the U.S. Constitution, which prohibits states from coining money. The price of the coin would alternatively be determined by market prices, though the value would also be pegged to the American Eagle Medallion.
Several in the audience voiced support of the bill, including former Boise City Council candidate Lucas Baumbach, who urged lawmakers to avoid inflationary policies that, he believes, could turn the U.S. into the Weimar Republic, a government formed in Germany following World War I. The republic was plagued with several problems, including hyperinflation. Baumbach told lawmakers that he doesn’t want to see the U.S. take a step backward in living standards, which would result from hyperinflation. Baumbach also called on lawmakers to diversify the state’s workforce.
“I don’t think mining jobs are a step backwards,” said Baumbach. ”Not everyone can work at Micron, not everyone can work at Hewlett-Packard.”
Rep. Russ Matthews, supported Hart’s legislation as a way to build the economy.
“This is, in my opinion, true economic stimulation,” said Matthews.
The bill now moves on to the House for a vote.
While I think this is a noble idea, it seems naive to me. Don’t get me wrong I support the movement away from Federal Reserve Notes, but the logistics of handling silver bullion as payment of taxes is a nightmare. Can you imagine the people having to flock to the local tax collectors office with piles of silver coins? And the pricing? “Pegged to the American Eagle Medallion
“. Give me a break. The Silver Eagle is worth 1 dollar face value. You’d be fool to spend it for that value. If people of the state were silly enought to do this, the state of Idaho would become very wealthy as they be taking in nearly 16 dollars, as of today’s exchange rate, for every tax dollar on paper.
If its pegged against spot silver, then you’d have to constantly calculate what you owe to the state at any give day or time in terms of bullion weight.
This has got to be a token effort to make a point that will get struck down in the state House.
If its for real and the state could pull this off without drawing the wrath of the Federal government I’d be shocked.
Then if they do pull this off and folks actually do it and Idaho can manage it logistically….. hmmmm maybe I should move to Idaho
GREAT IDEA– I use the gold colored dollar coins (from the CdA Car Wash) as cash all the time. They are great when using at drive-thru’s. Let’s make this happen. Good for you Senator Hart for looking out for the best interests of Idaho! Kudos!
I agree with Rick, and I also would move to Idaho! Already thinking about it, but that would have me packing.
If the Idaho state government can make this happen then I will move there. I will bring my wealth, skills, and hopes for a future free from oligarchy.
People in other countries are constantly paying based on current exchange rates. Many countries have more than one common currency as payment and they know the rates – it’s like the weather. People (probably will at this point) be saying – silver is up to $55 an ounce today, I owe $200 so 4 coins and I’ll get $20 USD back. Then the next year with inflation their bill is $400 silver is at $110 an ounce they will say, ah 4 coins and $40 USD back. The people holding onto the USD lose value so they will be trying to spend it on other hard assets. With electronic transfers pay in USD can be moved easily into gold or silver backed accounts. This will be the norm.
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what about people that have their own silver, can they bring that as payment? since silver is silver? or at least give them the option to melt it down into said medallions
to Ben: yes that’s what they use to do at the mints all over the country back when the US was on a silver dollar standard. The only thing is that it took about 30-40 days before you would get your silver back in coinage. The time would probably be shorter today with the technologies we have now.
WTG PHIL! Nice to see you’re keeping that ball rolling!
Awesome idea. Really great idea. Way to localize wealth that the federal government and the “federal reserve” (a private banking institution) are stealing from the people in the form of semi hyper-inflation.
Here is a quote “Inflation is the one form of taxation that can be imposed without legislation.” -Milton Friedman 1912
You don’t need to move to Idaho.
Fix what’s wrong with where you are.
[...] From The Idaho eporter: That, Hart believes, could bring hundreds, if not thousands of jobs to the state. In conjunction with the creation of the medallion, Hart’s bill would also try to lure silver processing companies to Idaho, and in particular, north Idaho, which, according to Hart, was once called “the silver capital of the world.” The bill would give companies that come to Idaho to process silver for the medallion a 10-year exemption from income taxes, as well as property taxes. The exemption would be open for 20 years and would sunset after that period of time. [...]
[...] From The Idaho Reporter: That, Hart believes, could bring hundreds, if not thousands of jobs to the state. In conjunction with the creation of the medallion, Hart’s bill would also try to lure silver processing companies to Idaho, and in particular, north Idaho, which, according to Hart, was once called “the silver capital of the world.” The bill would give companies that come to Idaho to process silver for the medallion a 10-year exemption from income taxes, as well as property taxes. The exemption would be open for 20 years and would sunset after that period of time. [...]
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I agree with the above posters. This is a brilliant stroke, and if this passes, I will be moving to Idaho.
Jubilee,
You won’t need to hire a moving company. The plan failed earlier this week.
[...] The Idaho Reporter: That, Hart believes, could bring hundreds, if not thousands of jobs to the state. In conjunction [...]