Texas Senate Bill SB2097

Texas 2017 - 85th Regular

Caption

Relating to the use of gold and silver coins and bullion.

Impact

The introduction of SB2097 carries significant implications for Texas state law, as it provides a framework under which gold and silver can be utilized not just for private transactions, but also in settling state-imposed taxes and fees. This legislation could signal a shift towards a more stable, commodity-based monetary system, potentially decreasing reliance on fiat currency. Critics of the bill express concern that it might destabilize financial practices and complicate tax collection processes if public acceptance of these materials does not sufficiently rise.

Summary

SB2097 aims to establish the use of gold and silver coins and bullion as legal tender in the state of Texas, recognizing the constitutional rights of citizens to use these precious metals in debt payments. The bill defines gold and silver coins, bullion, and the processes for their use in transactions. It mandates that if a tax or fee is due based on the method of payment in gold or silver, the payment must also be made in the same medium. Proponents argue that this move aligns with constitutional provisions and enhances the state's economic independence, ensuring citizens' rights to their chosen means of payment.

Contention

Debate surrounding SB2097 includes substantial discussion on whether the reintroduction of a gold and silver standard is a prudent financial move. Supporters believe it will enhance financial security and promote economic freedom among citizens. Conversely, detractors argue that the practical challenges of implementing a dual currency system could lead to economic disruption, lack of enforcement, and challenges in taxation. The validity of establishing a commodity-based currency in modern economic contexts remains a point of contention among lawmakers and economists, reflecting a broader national discussion on monetary policy.