Follow Where You Tax Dollars Are Being Spent

Earlier during the S&P conference call, one of the participants asked the brilliantly simple question: with the Fed monetizing debt, why should the US even bother to collect taxes? When one steps back from the apparent insanity of this rhetorical question, it does present a very good though experiment: after all what better way to stimulate the consumer part of the economy than to let 'taxpayers' no longer be that, and retain 100% of their cash. In the meantime, since nothing impacts bond yields, the statists will say, the Fed can continue to monetize debt indefinitely: after all we have a printing press and a reserve currency (an argument so asinine even the S&P laughed at it), until we get to a point where consumers have no choice but to lever up in the face of rampant inflation. And don't forget - the Fed can print an infinite amount of Treasury puts to where it alone pins yields to desired levels. While we hope to see much more discussion over this very simplistic yet so crucial question in the future, for all those (and at about 53%, it's not that many) in the US population who pay income and other taxes, courtesy of the White House, here is a schedule that shows where tax dollars are being spent. And don't forget: the Fed continues to match roughly one dollar for every dollar reimbursed back to the IRS.

From the White House:

In his State of the Union Address, President Obama promised that this
year, for the first time ever, American taxpayers would be able to go
online and see exactly how their federal tax dollars are spent. Just
enter a few pieces of information about your taxes, and the taxpayer
receipt will give you a breakdown of how your tax dollars are spent on
priorities like education, veterans benefits, or health care.

Comments

[purplefrog]

Um, Do you really think the Income Tax is about money???  We've know for a long time there are better ways to raise more revenue.  It is totally (almost) about control!!!  It's the reason/excuse they use to look into your stuff.  "Guilty until proven innocent."  It is the ultimate proof that the constitution IS NOT the law of the land.

[Jay]

These are my thoughts also. One of the biggest problems with the income tax is not just the tax but the loss of financial privacy.

[Buckaroo Banzai]

Exactly. The point of an income tax is to enslave you. That's what an income tax is, after all-- slavery.

[Soul Train]

A one year tax holiday is the most efficient way to jump start the economy. It is one of the solutions mentioned at the bottom of the front page website of www.ObamaDollar.com

Of course, the reason this would not happen is that the USA is a plutocracy, ruled by the elite. And if you read the website link above, this whole fiasco ( as we all know as readership of ZeroHedge) is to keep the elite in power and $$$ stuffed in their pockets.

[Cap Matifou]

Nothing new under the sun.

The question of no taxation was the title of the presentation of a FED manager about 65 years ago. Taxes are now just a means to alter the structure of society.

TAXES FOR REVENUE ARE OBSOLETE by Beardsley Ruml
http://home.hiwaay.net/~becraft/RUMLTAXES.html

[Freewheelin Franklin]

The Fed is limited on how much money it can "print" only by a complete repudiation of the currency. That is what we all know (and love) as "HYPERINFLATION". Or what Palyi called "galloping" inflation.  In fact, it was Palyi who declared that, in a fiat currency regime, taxes are merely a curb on future price inflation. This question has been "asked and answered".

"Objection sustained".

http://mises.org/books/inflation_primer_palyi.pdf