The US Government Doesn’t Even Need Your Tax Dollars
By: Reid Griffith
Tags: Government, Bernie Sanders, Taxes, Inflation, Modern Monetary Theory

In 2020 the US Federal budget was $4.79 trillion dollars. It collected $3.42, and spent $6.55 meaning there was a deficit of $3.13. In other words the federal government spent about 1.5 times as much money as it made. The CARES Act itself took about two months of deliberation until it was signed into law and with the click of a mouse 2.2 Trillion dollars were made available from the US Treasury to the public. With the standard amount of diversion through the big banks of course. During this short period US taxes did not go up enough to cover the bill, we did not take from a pile of cash under the mattress, and we did not steal the money from a foreign land, but instead the money was produced out of thin air and transferred to bank accounts all over the country. Least of which was your own.

Take a deep breath because what I’m about to tell you next might make you want to throw your coffee mug through the window. Your tax dollars, the ones you are forced to pay at the threat of imprisonment, the sales tax you pay when buying literally everything, the tax your grandma pays when she dies, the tax paid on getting married, gifting money, and the wages paid to have a repairman fix that window — are virtually irrelevant to the US government when it comes to paying for its many expenses. Why? Because the US government as a currency issuer (a government that creates it’s own currency) can create as much money as it wants, anytime, without your consent.

Government is great at pulling at your heart strings and making you think it operates at the same level as your family budget, but the scary (or wonderful) truth of the matter is the two couldn’t be more different. Social security will never run out of money, government healthcare could be implemented tomorrow, and we could fill the pot holes on every road in the country without concern of ‘having the money’ because the US government cannot run out of money. Coming up with the money is not the problem, in fact the problem is getting congress to vote for these bills, and the resulting inflation.

So why are we taxed? In the book ‘The Deficit Myth’ by Stephanie Kelton she gives 4 reasons:

1. To incentivize production and allow governments to provision themselves. Taxes give value to an otherwise worthless bit of paper by requiring payment in it. In turn, that achieves the objective of getting us to produce things.

2. To manage inflation. Too much overall spending (public and private) pushes up prices. Taxes are one lever to control total spending in the economy.

3. To redistribute wealth and income. Taxes can help redress stagnation and rising inequality.

4. To encourage or discourage certain behaviors. For example, taxes can help discourage damaging actions for the environment or prevent smoking.

If the loud circus music isn’t playing in your head yet let me break it down to you in a really depressing way — the government takes your hard earned money everywhere you turn in life and they don’t even need it. THEY DON’T EVEN NEED IT.

It is collected and redistributed for a variety of reasons, many of which revolve around making you a good little productive member of society.

This should lead you to several LIFE CHANGING conclusions, some of which are:

· It should not matter one bit to you how much money Jeff Bezos has in his bank account or how much money he ‘isn’t paying in taxes’. The gap between the rich and the poor is more a product of compound interest than it is the illuminati.

· We as a country can afford it all. We could pay for nearly any New Green Deal legislation and then some.

· Inflation is a government tool and is managed by the Federal Reserve. There is a limit on spending, and inflation is the byproduct off it however we can take on a lot more than you’ve been led to believe. (Just take a look at Japan’s inflation rates)

· And most importantly… The biggest takeaway you should consider in the wake of this discovery is that your number one goal when it comes to paying taxes should be in no uncertain terms, and with no shame or guilt whatsoever — to pay as little money in taxes as legally possible.

You do not get any silver stars for paying your taxes and since 1972 (moving away from the gold standard) you are not contributing to the overall good of society by doing so. The system of taxation is based on compliance and taxes will be your number one expense in your life.

Ok, so you’re rightly pissed off and left with one final question, ‘what can I do to lower this expense in my life?’

Unfortunately for you instant gratification types this will be the topic of our next article. But as you lay your head on the pillow tonight and think about the tax tornado in your life and how much money you have wasted… don’t fret for there is a bright light on the horizon. No, it isn’t the light at the end of the tunnel, it’s real estate. And it has been knighted by the almighty government with powers beyond your wildest dreams. Inflation meet depreciation, tax burden meet tax deduction, rising costs meet fixed rate loan. The knight in shining armor brings with it a toolkit for combating the greedy government’s plans to take from you all you have. And it has created more millionaires than any other industry the world has ever known. Hang in there, we will take down this beast with knowledge and a well-equipped accountant.

Further Reading

· Modern Monetary Theory (MMT)

· The Deficit Myth — Stephanie Kelton