H.R. 4248 Free Competition in Currency Act

H.R. 4248 Free Competition in Currency Act of 2009

Summary: Proposal to repeal the legal tender laws of the United States and prohibit taxation of certain coins in bullion for the purpose of reintroducing a system of competing currencies.

Sponsor: Rep. Ronald Paul

Date Introduced: December 9, 2009

Current Status: Referred to Committee

The Free Competition in Currency Act of 2009 proposes to repeal legal tender laws and prohibit taxation of certain coins and bullion.

Specifically, Section 5103 of title 31, United States code would be repealed. Tax could not be imposed on any coin, medal, token, or gold, silver, platinum, palladium, or rhodium bullion coins. This would include those issued by the United States, a foreign government, a State, or any other person.

In addition, state tax could not be imposed on any currency which is used for interstate commerce or commerce with a foreign country, and which holds legal tender statue under article I, section 10 of the United States Constitution. This would become effective on December 31, 2009.

The stated purpose of H.R. 4248 is to reintroduce a system of competing currencies. The law will create a legal climate favorable to competition. According to Rep Ron Paul, “Historically, legal tender laws have been used by governments to force their citizens to accept debased and devalued currency… If people are free to reject debased currency, and instead demand sound money, sound money will gradually return to use in society.”