Quick "income tax " question

[Paul Or Nothing II]

Privatize everything. Once everything is private, fees will pay for all of it.

I could be wrong but I don't think that OP is looking for that kind of an answer

I'm assuming that OP is not yet immersed in libertarian philosophy & likely, neither is his brother, whom he's trying to convert so the answer "privatize everything" wouldn't exactly work, it'll probably freak out his brother & make him think that Ron is "kooky" like the media portrays him but obviously he's much more methodical than that

[Zippyjuan]

Education - Property tax. I would not argue in favor of that as a replacement. It denies people the ability to truly own private property and can render you homeless if you fail to pay for someone kids education.

If you eliminate the income tax the federal tax revenue would be out the same as it was in 2000 through corporate and other taxes.

Income taxes today cover about one third of government spending with roughly another third from borrowing. The 2000 budget was $1.8 trillion and today it is $3.5 trillion or basically twice as big. If you want to use 2000 revenues to pay for today's government you need to cut $1.7 trillion from this (note that "discressionary spending" is $300 billion smaller than that amount):

Mandatory spending: $2.173 trillion (+14.9%)

$695 billion (+4.9%) – Social Security
$571 billion (+58.6%) – Unemployment/Welfare/Other mandatory spending
$453 billion (+6.6%) – Medicare
$290 billion (+12.0%) – Medicaid
$164 billion (+18.0%) – Interest on National Debt


Discretionary spending: $1.378 trillion (+13.8%)

$663.7 billion (+12.7%) – Department of Defense (including Overseas Contingency Operations)
$78.7 billion (−1.7%) – Department of Health and Human Services
$72.5 billion (+2.8%) – Department of Transportation
$52.5 billion (+10.3%) – Department of Veterans Affairs
$51.7 billion (+40.9%) – Department of State and Other International Programs
$47.5 billion (+18.5%) – Department of Housing and Urban Development
$46.7 billion (+12.8%) – Department of Education
$42.7 billion (+1.2%) – Department of Homeland Security
$26.3 billion (−0.4%) – Department of Energy
$26.0 billion (+8.8%) – Department of Agriculture
$23.9 billion (−6.3%) – Department of Justice
$18.7 billion (+5.1%) – National Aeronautics and Space Administration
$13.8 billion (+48.4%) – Department of Commerce
$13.3 billion (+4.7%) – Department of Labor
$13.3 billion (+4.7%) – Department of the Treasury
$12.0 billion (+6.2%) – Department of the Interior
$10.5 billion (+34.6%) – Environmental Protection Agency
$9.7 billion (+10.2%) – Social Security Administration
$7.0 billion (+1.4%) – National Science Foundation
$5.1 billion (−3.8%) – Corps of Engineers
$5.0 billion (+100%-NA) – National Infrastructure Bank
$1.1 billion (+22.2%) – Corporation for National and Community Service
$0.7 billion (0.0%) – Small Business Administration
$0.6 billion (−14.3%) – General Services Administration
$0 billion (−100%-NA) – Troubled Asset Relief Program (TARP)
$0 billion (−100%-NA) – Financial stabilization efforts
$11 billion (+275%-NA) – Potential disaster costs
$19.8 billion (+3.7%) – Other Agencies
$105 billion – Other

http://en.wikipedia.org/wiki/2010_Un...federal_budget

[Zippyjuan]

Its so sad that people pay SO much money in income taxes but can't even name the things it goes to fund. I bet these same people know exactly how much their car payment or house payment/rent is. Its such a wonderful scam isn't it? I mean you get to suck all these money out of people and they'll mostly think its being used for their benefit.

Here comes the truth: The banks buy the US debt with cash borrowed/created at 0% by THE FED. Your income tax dollars go mostly to pay the interest on the debt. the debt itself, when borrowed was used to fund the wars, useless departments handing out corporate welfare, and pork barrel spending. Its amazing, people just assume that so much money has got to be used for good things, its a democracy right. The people got to spend the money.

The delusion is so pervasive, it infects even otherwise informed and intelligent people.

Not true. In 2010, interest on the debt accounted for only $164 billion in government expenditures while income tax collections were $1.2 trillion which means under 14% of income tax revenues go to paying interst on the debt.

[Paul Or Nothing II]

A sovereign people in a sovereign nation create their money as they need it.

So let's say the cost of a new bridge is estimated at $10,000,000. An account is created for the amount of ten mil and it is used to pay for the project, which includes everything related to building the bridge: materials, labor, etc.

What this does is expand the economy by putting new money into circulation by improving the vital infrastructure, which everyone benefits from.

This, coupled with a completely government-run banking and credit system, eliminates taxation at every level. The people are now free to do whatever they want with every penny of their money without paying any taxes to government.

This is called "Sovereign Money".

Only slaves pay taxes.

It's funny how the Constitution states that "Congress shall have Power to coin Money and regulate the Value thereof", yet we instead use a third-party, private monetary system that the government pays for by taxing us.

oh please! This BS peddled by the likes of BIll Still ("Money Masters", "Secret of Oz", etc) & others have been debunked so many times here, please search

This is the most ridiculous "solution"!

"Oh, we can't trust those evil bankers but we can trust our honest, angelic, uncorrupt politicians & bucreaucrats"

BS I say! Bankers often have an iota of brain but politicians & bureaucrats are usually worse, they run the whole thing down into the ground even faster by overissuing the money, it has happened many times in history in many place!
Notably, during the Revolutionary War when Continental Congress massively devalued the Continental paper-currency, that's where "not worth a Continental" phrase comes from! And that was precisely the reason Constitution does NOT allow the government to issue paper-money, re-read what you've posted, it "power to COIN money"!
US didn't have any government issued paper-currency until Emperor Lincoln waged an unnecessary war & shoved his Greencrap down people's throats by deceit to pay for his war, he massively devalued it by overissuing it & it took years for Congress to clean up the mess he left & monetary order

Don't think there are "no taxes", there will be INFLATION-TAX, money is NOT different from any other commodity in the sense that when supply of something increases, it's prices fall, same with money, the more government issues, the more it loses it's value, which is exactly what's been going on for a while now

And another MYTH that seem to do peddled by uninformed conspiracists out there is that government "pays interest" to Fed, NO, IT DOESN'T, it's more or less an accounting procedure because Fed hands over all of its "profits" back to the Treasury every year, which INCLUDES the interest the Treasury had supposedly "paid" + other incomes of Fed like interest received on loans to banks, etc

If we'd "sovereign money" instead of the current system then that 15 trillion worth of debt could actually be in circulation as "money" & the US Dollar would've been worth Zimbabwean Dollar or something

Giving government the power to issue money is outright stupidity, they can't run anything well, we need competing currencies chosen on & provided by the market through free choice of people