Why do we have federal taxes?

[Zebo]

Seriously most of us know govt cant go broke. Don't believe me? Here is alan Greenspan.

”government cannot become insolvent with respect to obligations in its own currency. A fiat money system, like the ones we have today, can produce such claims without limit.”

Did you hear that? Without Limit!

We ran over 1T dollar deficits last 4 years to pay obligations, Fed ginned up trillions more to bail out wall street and even foreign banks. No problem. Why not gin up and/or borrow the 3+ trillion to run whole govt every year?


So my question is are taxes a primitive relic from when we didnt have a fiat system and limited money supply and do we need to get rid of Federal taxes?

Seems like a big waste in unproductive man hours with compliance and filings, trees, causes resentments, etc. Just scrap them.

 

[Texashiker]

You want the truth? You want the brutal truth?

Federal taxes are a way to prevent the middle class from accumulating wealth.

The federal government does not need taxes, it can print all the money it needs.

 

[master_shake_]

you want the truth? You want the brutal truth?

Federal taxes are a way to prevent the middle class from accumulating wealth.

The federal government does not need taxes, it can print all the money it needs.

fucking knew it!

honestly though if i didn't have to pay federal tax i'd probably piss it away elsewhere.

 

[Aldon]

fucking knew it!

 

[Orignal Earl]

Everytime I see the posters complaining about those who do not contribute to society, I figure that's what they are talking about.
Go to work and pay their taxes.
If you take that away you just cut in half their contribution

 

[Anarchist420]

we have taxes so that the ruling class can stay in power.

 

[Orignal Earl]

snip

Are you really in Baghdad?

 

[Aldon]

Are you really in Baghdad?

I decline to comment.

 

[Orignal Earl]

I decline to comment.

ok

 

[Texashiker]

honestly though if i didn't have to pay federal tax i'd probably piss it away elsewhere.

Could you imagine the economic boom if people suddenly had 20% or more to spend?

Take that income tax, fuel tax, social security, medicare and medicad money and dump it straight into the economy.

 

[fskimospy]

Because federal deficits outside of a liquidity trap lead to inflation.

Thread over.

 

[Texashiker]

Because federal deficits outside of a liquidity trap lead to inflation.

We can always print more money

 

[Zebo]

Because federal deficits outside of a liquidity trap lead to inflation.

Thread over.

No.

Well, in theory, yes. But probably not. Why is that? Because the US has an even bigger advantage than just being sovereign in its own currency (hi Greece), it also holds the reserve currency. The US dollar is the main currency that is used in most international transactions, it is held by all of the world’s central banks, and so forth.

Why is this important? Well, another way to define inflation is to say that the supply of a currency gets out of whack with its demand: too much currency chasing too few people who want to hold it, and so its value drops. Well, when you have the reserve currency, the demand for your currency is always going to be extremely strong. There’s always going to be tons of people, all around the world, who want to use US dollars, because their transactions are conducted in US dollars. (And it’s highly unlikely that this will change soon–being the reserve currency has a network effect, meaning everyone uses the dollar as the reserve currency because everyone else uses it, creating a self-reinforcing cycle that’s extremely hard to break.)

In other words, while in theory printing tons of money could create inflation, in practice demand for the dollar is so high–and for structural reasons that have very little to do with how the US economy is doing at a particular point in time–that it’s hard to imagine a circumstance under which the US government would have to print so much that it would cause significant inflation.

http://www.forbes.com/sites/pascale...l-not-go-into-a-debt-crisis-not-now-not-ever/

 

[Zebo]

Everytime I see the posters complaining about those who do not contribute to society, I figure that's what they are talking about.
Go to work and pay their taxes.
If you take that away you just cut in half their contribution

if you took taxes away they couldnt bitch about people "who contribute nothing"

BTW- you flush a toliet you pay taxes so thier argument is BS anyways - everyone pays taxes.

 

[Sonikku]

We can always print more money

This. Dethklok tried this. Are you all saying you're better than Dethklok?

 

[Zebo]

You want the truth? You want the brutal truth?

Federal taxes are a way to prevent the middle class from accumulating wealth.

The federal government does not need taxes, it can print all the money it needs.

I believe it. After all most us pay more percentage basis than the .01%. Like Romneys and Buffets. Someone has to do it.. or maybe not.

waiting for LKs reply...

 

[Zebo]

fucking knew it!

honestly though if i didn't have to pay federal tax i'd probably piss it away elsewhere.

Thats on you. Some people invest savings into businesses, annuities, mutual funds etc. No tax = more savings for those ppl = more weath.