something that Michael Hudson and his colleagues have suggested Latvia use to reform its tax code, a 100% income tax credit for all site value taxes paid (the 100 percentage could be reduced as the economy approaches full employment as a sort of an inside out tax increase) . State legislatures would then be nuts not to switch as much of state and local tax burden to property taxes on land (but not improvements) taxes as possible, since their citizens would be reimbursed on the federal side anyway. Most recent data is for 2008 (which probably isn't any higher this year because of the economy): Revenue from taxes, the largest share of state and local government revenue, rose 3.7 percent to $1.3 trillion. Sales and gross receipts made up the largest share of tax revenue ($448.7 billion), followed by property taxes ($409.7 billion) and individual income tax revenue ($304.6 billion) http://www.census.gov/newsroom/releases/\\... Under current institutional arrangements, the tsy can do what's call 'funding the debt' with nothing longer than 3 month bills no matter how large the deficit spending which I propose as an interim step. Yeah Tom, It's only been over two years since this hockey stick formation was exhibited in WRESBAL initially due to forex currency swaps between the Fed and the ROW and btw ever since prices have COLLAPSED! But these mainstream idiots are so slow on the uptake that they still havent grasped the fact that stock measures of "money" are meaningless. Hello Monetarists: This is a