Do our Income Taxes really go to the Banking Elite can anyone prove this ?

[mikejohnson2006]

Do our Income Taxes really go to the Banking Elite can anyone prove this ?

Why an Income Tax is Not Necessary
to Fund the U.S. Government

http://www.devvy.com/notax.html

[limequat]

Um yes, it's quite simple

Income taxes => General Fund => Interest on National Debt => Federal Reserve => Banksters

[_b_]

The vast majority of the world's countries are in debt, and that debt has to be owed to someone. https://secure.wikimedia.org/wikipedia/en/wiki/List_of_countries_by_external_debt

[mikejohnson2006]

How do we know that the Income Tax goes to paying off the debt to the Bankers ?

[sirgonzo420]

How do we know that the Income Tax goes to paying off the debt to the Bankers ?

http://en.wikipedia.org/wiki/The_Grace_Commission

[erowe1]

Do our Income Taxes really go to the Banking Elite can anyone prove this ?

Why an Income Tax is Not Necessary
to Fund the U.S. Government

http://www.devvy.com/notax.html

It's not true.

You can easily find the amount they pay on interest on the debt and the amount they get from income taxes. And the income taxes are a lot higher than the interest on the debt.

I believe the source of that urban legend is a report that Reagan commissioned in 1981 or so. It might have been a true statement at that time, when tax revenues were low because of a bad economy and the interest rate was really high. But as a rule, year after year, no it's not true.

[erowe1]

http://en.wikipedia.org/wiki/The_Grace_Commission

That's the one.

[Zippyjuan]

It's not true.

You can easily find the amount they pay on interest on the debt and the amount they get from income taxes. And the income taxes are a lot higher than the interest on the debt.

I believe the source of that urban legend is a report that Reagan commissioned in 1981 or so. It might have been a true statement at that time, when tax revenues were low because of a bad economy and the interest rate was really high. But as a rule, year after year, no it's not true.

Income taxes collected for 2009: $1.21 trillion.
Interest on the debt that year: $260 billion.
http://en.wikipedia.org/wiki/2009_United_States_federal_budget
And only a tiny portion of the debt is held by US banks. Over 40% is held by US government agencies (Social Security being the biggest government holder) and another chunk held by foreign investors. Even the domestic ownership is further diluted by holdings in retirement and other investment funds. In this chart, they don't give a number (space is too small) but "Depository Institutions" seems to be perhaps one percent or $2.6 billion.
http://upload.wikimedia.org/wikipedia/commons/1/17/Estimated_ownership_of_treasury_securities_by_year .gif
http://en.wikipedia.org/wiki/File:Estimated_ownership_of_treasury_securities_by _year.gif

[akforme]

I'd say that taxes benefit the banks more than anyone else.

It creates demand for the FRN, so you can pay taxes, and half the money goes to fighting wars for the petrodollar which gives their commodity value. Your biggest tax break comes from going into 30 years of debt with a bank, and tax dollars back the entire financial industry.

[eproxy100]

Income taxes collected for 2009: $1.21 trillion.
Interest on the debt that year: $260 billion.
http://en.wikipedia.org/wiki/2009_United_States_federal_budget
And only a tiny portion of the debt is held by US banks. Over 40% is held by US government agencies (Social Security being the biggest government holder) and another chunk held by foreign investors. Even the domestic ownership is further diluted by holdings in retirement and other investment funds. In this chart, they don't give a number (space is too small) but "Depository Institutions" seems to be perhaps one percent or $2.6 billion.
http://upload.wikimedia.org/wikipedia/commons/1/17/Estimated_ownership_of_treasury_securities_by_year .gif
http://en.wikipedia.org/wiki/File:Estimated_ownership_of_treasury_securities_by _year.gif

The federal reserve IS a bank. They hold a not insignificant amount of treasuries - about USD1.65T now. So the amount being paid in interest to banks is larger than zippyjuan suggests.

Certainly not all the money goes to banks. Don't forget the bailout of AIG though - it was really for the interest of goldman sachs and it was done under taxpayer's money. There are many special interest groups, like the military industrial complex, that also take a share of it.

[Zippyjuan]

The federal reserve IS a bank. They hold a not insignificant amount of treasuries - about USD1.65T now. So the amount being paid in interest to banks is larger than zippyjuan suggests.

Certainly not all the money goes to banks. Don't forget the bailout of AIG though - it was really for the interest of goldman sachs and it was done under taxpayer's money. There are many special interest groups, like the military industrial complex, that also take a share of it.

The Federal Reserve is basically the bank for banks but it does not pass along the interest it receives from Treasuries to banks but instead returns its profits (not just on Treasuries but on other holdings and operations as well- after costs) to the Treasury so it basically doesn't keep the interest it receives. But for grins, let's say that they did count as a bank and kept the interest or gave it to other banks. The Fed, as you correctly indicate, holds about $1.6 trillion in Treasuries. Out of a total of $14 trillion issued, that comes to about eleven percent so eleven percent of the $260 billion paid in interest on the debt would add $29 billion to the "bank" total- raising it to $31 billion- still a tiny fraction of the $1.2 trillion paid in income taxes.

[eproxy100]

The Federal Reserve is basically the bank for banks but it does not pass along the interest it receives from Treasuries to banks but instead returns its profits (not just on Treasuries but on other holdings and operations as well- after costs) to the Treasury so it basically doesn't keep the interest it receives. But for grins, let's say that they did count as a bank and kept the interest or gave it to other banks.

The federal reserve DOES generate income for itself, hence the dividends for its shareholders.

The federal reserve BANK does count as a bank as much as JP Morgan and the likes are counted as banks.

Income taxes not destined for payment to interest can still end up with banks. But as I said, there are many special interest groups that receive the money depending on how you want to split it amongst them. And of course some of the money gets used up in the social stuff too, again depending on how you wanna split it since income tax < spending.

[Zippyjuan]

The federal reserve DOES generate income for itself, hence the dividends for its shareholders.

The federal reserve BANK does count as a bank as much as JP Morgan and the likes are counted as banks.

Income taxes not destined for payment to interest can still end up with banks. But as I said, there are many special interest groups that receive the money depending on how you want to split it amongst them. And of course some of the money gets used up in the social stuff too, again depending on how you wanna split it since income tax < spending.

Absolutely- the Fed does generate income for themselves- they had profits of $81 billion last year and returned $79 billion to the Treasury- a record. http://fnno.com/video/central-bank/federal-reserve-returns-79-billion-profits-federal-go-assets The dividends the pay out are a six percent payment on the "membership" fees banks had to pay to be members of the Federal Reserve banking system (they are called shares but cannot be traded or resold and carry no voting rights so they are basically just membership fees). That dividend counts as part of their expenses. The dividend is not based on the Fed's profits. The Fed only acts as a bank for member banks- companies or individuals cannot use any of their services.

http://en.wikipedia.org/wiki/Federal_Reserve_Bank

The Federal Reserve Banks issue shares of stock to member banks. However, owning Federal Reserve Bank stock is quite different from owning stock in a private company. The Federal Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the system. The stock may not be sold or traded or pledged as security for a loan; dividends are, by law, limited to 6 percent per year.[4]

[Dianne]

The first and only audit of the Federal Reserve, concluded this past July, revealed they printed 16 trillion dollars, secretly, and used it to bail out the our banksters and foreign banksters. That money is not reflected in our current debt; although the U.S. taxpayer is obligated to pay it.

Taxes aren't enough to feed American and worldwide banksters; so, they have now resorted to stealing millions of homes; 9 million estimated in the past two years; that have been seized illegally (foreclosed illegally); with the money being transferred to foreign banks.

Washington is nothing but organized crime.

http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3