Most people think the federal income tax system is necessary to generate revenue for the federal government. But is it? If you believe that, you’ve been duped, tricked, and deceived — and likely have been for years.
According to a chairman of the New York Federal Reserve, no income tax has been necessary for raising revenue since at least 1945. This is when fed chairman Beardsley Ruml gave a speech to no less than the American Bar Association entitled ‘Taxes For Revenue Are Obsolete’. This speech was then published in a magazine called American Affairs.
In short, the major reason for the lack of necessity for raising federal revenue from taxation was because of a fundamental change to the monetary system. Instead of a gold and silver based money system, the federal government could just create paper currency out of thin air (backed by nothing whatsoever!) Whenever it wanted — POOF! — instant money from the printing press (which is not even necessary anymore today with the wide-spread use of ‘electronic money’ transactions).
Have you ever thought about where U.S. currency comes from or what it’s based on? Think about it for a minute… Doesn’t it come from the federal government itself? [Although the money creation process is complex, the ultimate source is the government itself].
If the federal government is the source of the money creation, then why would it need to tax anyone for generating money when it can simply create all it may want? Does the sun need any of its light back to generate more sunlight? Does a fruit tree ask for any of its fruit back so it can make more fruit? Of course not. A source simply does not need returned whatever it makes in order to make more.
Since the federal government can create all the currency it wants, then it obviously doesn’t need taxation for raising revenue. It can simply create all the money it wants.
The next question is what is U.S. currency backed by? What does it represent? Certainly it must be more than just fancy pieces of paper with ink, artwork, and security strips, right? Guess what…
The only thing that has “backed” U.S currency (since at least the 70’s) is if you flip the bill over and look at the back of it! Yes, U.S. currency is literally nothing but the pieces of paper you hold in your hand (and just electronic entries today!). It has no ‘backing’ whatsoever.
So by now you may be wondering why this income tax system exists and why the federal government is taking your hard earned money (through intimidation and fear) when it’s not necessary for raising federal revenue? Good question…
Although there may be other reasons for the federal income tax, the necessity of raising revenue is simply not one of them.