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Comment: Re:I both agree and disagree (Score 1) 20

by Marxist Hacker 42 (#48325639) Attached to: Context? Context? Hahahaha

What I'm pointing out is that under any given fiat currency system, funding the state is only half the equation of what taxes should be.

The other half is preventing inflation.

The reason why the infamous-among-Austrian-Economists Worgl miracle occurred, before the central banks shut it down, was because it was not only an experiment in locally controlled currency, but also locally controlled taxes. The Certified Compensation Bills used as local currency had an automatic 10%/month tax on them, sucking them back into government as quickly as government was printing them. This discouraged savings, and stimulated economic velocity, avoiding inflation.

Comment: I both agree and disagree (Score 1) 20

by Marxist Hacker 42 (#48323219) Attached to: Context? Context? Hahahaha

I believe he is referring to the governmental power that *issued the currency*. In his day, Roman politicians would often issue currency with their picture on it. Without mass media, it was the way that they could get their picture out among the people.

Tax farming was specifically to soak up all this fiat currency, so that it wouldn't cause major issues.

Likewise today, the FED issues the currency. They own it and lend it to you specifically for the payment of debt, public and private. For this service, they charge a fee. Actually, they charge a couple. The first is the interest when they lend reserve banks the money. The second, is the license fee to the issuing governmental agency, also known as income tax.

I submit that income tax, IF it was done properly, would play much the same role as tax farming- sucking up excess currency to prevent inflation. It isn't done properly of course.

God may be subtle, but he isn't plain mean. -- Albert Einstein

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