Tuesday, February 14, 2012

Taxes and Basic Income

"Why is it fair that I should be paying a higher percentage of taxes than anyone else?" - Sheldon Adelson, net worth $21.5 billion USD (2011) 

There is no good reason why anyone should pay
a higher Tax Rate than others. After the Community has provided every person with sufficient food, serviceable shelter,  medical care, and free access to education that teach all skills necessary to prepare a person according to his ability and desire to express his contribution to living, a flat tax rate will be fair to all.

If the essentials of life are not guaranteed, it is necessary to make sure that we do not create a Social division of wealth so great that we end up with a society of Noblemen and Serfs. That is the major reason for progressive taxes. 

In the age Debt Currency, taxes are not levied to fund the activities of Government. They only serve to control the amount of currency in circulation to prevent an imbalance between enough to operate the economy at maximum efficiency and too much that will lead to inflation. 

The operations are actually funded by creating money through borrowing and spending it into the economy to achieve the Public Good that is mandated for Government to do. That is the real reason that we have had a growing debt for most of the Nations history. As the Economy needs more money to function it is created by debt. Money = Debt. Taxes remove money that is not needed.

The problem is that we have done it poorly. Banks control Debt and they find it useful to expand rapidly and then contract rapidly in order to create opportunity to convert Monetary wealth accumulated through interest into real wealthy by foreclosing on Debt collateral. We need to remove Debt creation from Banks and place it in the hands of Government.

Copyright © William Hodge 2012