In a move that many were watching for its legal precedent, Arizona Governor Jan Brewer just vetoed a measure on Thursday that would have allowed gold and silver to be legal tender in the state. She explained that her veto was due to the fact that the legislation could have resulted in lost tax revenue. The bill would have allowed gold and silver to become legal tender beginning in mid-2014.
The Republican-controlled state legislature voted the measure through last month. Brewer, in an open letter to state Senate President Andy Biggs explained, “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.”
In recent years, the desire to establish gold and silver as currency has become popular in the US with hardline fiscal conservatives. They’ve been backed by the Tea Party movement, American Principles Project, the Gold Standard Institute and others.
Brewer, however, noted that the “administrative and fiscal burdens” for taxpayers and the revenue department “remain vague.”
Had the measure been signed, Arizona would have become only the second state in the US to establish precious metals as legal tender. Utah has such measures in place.