Taxes

Introduction by Ron Paul

Today, the federal government burdens us with one of the most dangerous taxes it can impose — the inflation tax. When the federal government finds that it cannot afford its out-of-control spending, and is unwilling to directly tax the public, it resorts simply to creating the money out of thin air.

Inflating the money supply is the easiest form of financing the government. The Federal Reserve, an unelected and unaccountable private organization, pumps more dollars into the economy whenever it chooses. Because the public is forced to accept these bills, the Fed essentially gets away with legally counterfeiting. We cannot possibly expect the government to control spending when it has a blank checkbook.

This greatly benefits the politicians and special interests — they are able to finance the massive welfare-warfare state. But how does this inflation affect you?

Basic economics tells us that the more there is of a good, the less valuable it becomes. This is also true of money. The dollar is worth four cents of what it was when the Federal Reserve was created in 1913.

Day by day, every dollar you have is being devalued. You pay an inflation tax without even realizing it because you are forced by a falling dollar to pay more for goods and services.

The disastrous fiscal policies of our own government, marked by shameless deficit spending and Federal Reserve currency devaluation, are some of the greatest threats facing our nation today. It is this one-two punch — Congress spending more than it can tax or borrow, and the Treasury printing money to make up the difference — that threatens to impoverish us by further destroying the value of our dollars.

By legalizing competing currencies, we can end the Federal Reserve’s stranglehold on our money supply and begin to restore value to the dollar. But Congress will continue to spend extravagantly until we the people make our views known at the ballot box.


    This case represents the best shot we will ever have at ridding ourselves, once
    and for all, of the dreaded federal income tax. It is time to take political action and
    make our voices heard if we are going to continue to have FREEDOM OF SPEECH
    and the RIGHT TO DEFEND OURSELVES IN COURTS. PLEASE HELP.

    It has become common knowledge within the freedom and tax honesty movements that the current enforcement of the tax code is unconstitutional and, therefore, illegal. It is also well known that the tax system is designed to feed the banking system to pay the interest on the money that Congress is supposed to mint, but has given that power to the private bankers. This would be akin to a fox guarding the hen house scenario.

    The inflation tax is one of the most significant cases in point. Haven’t heard of it? If so, don’t be too hard on yourself. Most Americans don’t even realize that an inflation tax exists. You have the Federal Reserve to thank for this tax. Here is how it works. Whenever federal spending becomes exorbitant and directly taxing the American people is not an option, the federal government calls upon the Federal Reserve for help. In turn, the Federal Reserve creates money ex nihilo. That’s right. The Fed literally generates liquidity out of nothing.

    Crack the Internal Revenue Code

    Readers of 'Cracking the Code- The Fascinating Truth About Taxation In America' have already retained or taken back well over from the federal and state governments-- including Social Security and Medicare 'contributions'-- and kept it in their own pockets where it belongs, simply by knowing what the law actually says. These Americans have gotten back every penny they've paid or had withheld from them during the year in connection with the "income tax", and have secured written acknowledgements that they owed nothing-- many for several years in a row now. You need to know the truth, too!





    Taxing Taxes

    One of the most opaque facets of America's tax system is the covert manner in which the 50 States tax the federal consumer taxes (i.e., exise taxes) we pay to the federal government. Yes, that's right. Our taxes are taxed and nobody seems to notice. We've been paying State taxes on a large portion of the federal taxes we pay for so long as that the media industry apparently considers these billions to be so trivial that its not worth their effort to raise the specter that there may be something wrong with the States taxing the taxes we pay to Uncle Sam.

    FairTax - Citizens' Vigilance Required

    Imagine receiving a full paycheck, all your last pay period wages. No income tax except possibly state. Think FairTax. It is the proposed replacement plan to the dreaded IRS and the complicated tax code system which the majority of citizens do not understand, including the experts. How will the government collect revenues then? It’s simple. Citizens would pay federal government taxes on what they buy in new purchases and services. The proposed 23 percent tax on every dollar would be included in all displayed prices. No added tax at the register.

    Do Tax Cuts Cost the Government Money?

    Whenever tax cuts are discussed in Washington, the media and most politicians use the phrase, “cost to government.” “How much will this tax cut cost the government?” we are asked, as though some crime is being contemplated when we consider reducing taxes. The American people have every right to fund the federal government at whatever level they deem acceptable, and if they choose-- through their elected representatives-- to reduce that funding level, they are not somehow injuring the government.

    Your Taxes Subsidize China

    Each year the people of the United States write a check to subsidize China, one of the most brutal, anti-American regimes in the world. Lately it has been in vogue for everyone in Washington to eagerly denounce the egregious abuses of the Chinese people at the hands of their communist dictators. Yet no one in our federal government has been willing to take China on in any meaningful way.

    The Threat of Rising Property Taxes

    In recent weeks I’ve written about how inflation is alive and well, especially when it comes to the cost of housing, energy, gas, and education. But perhaps the most worrisome type of inflation comes in the form of steadily rising property taxes.

    The Law That Never Was

    A criminal investigator for the Illinois Department of Revenue for approximately 10 years, William J. Benson of South Holland, Illinois has been at the vanguard of debate and controversy surround the 16th Amendment for almost two decades. In 1984 he embarked upon a year-long project to examine the process of the ratification of the 16th Amendment and to determine whether or not it had been lawfully adopted as part of the U.S. Constitution. The culmination of Benson's work is the book, "The Law That Never Was."

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