A world without income taxes (Can it be done?)

Washington Times ^ | 10/10/2012 | Richard Rahn

[SeekAndFind]

Why should the federal government bother to impose taxes when it can use the Federal Reserve to “print” all the money it needs to pay its bills? Last year, the Fed bought 77 percent of all of the government’s new debt, which is the equivalent of printing money. The government borrowed almost 40 cents for each dollar it spent, with the Fed printing 30 cents of each dollar spent through its bond purchases (creating new money) — an amount equal to about 7 percent of gross domestic product.

What would happen if the Fed printed enough money each year to cover the cost of the federal income tax of approximately $1.4 trillion? Most people who have taken a course in economics know that it ultimately would result in a high rate of inflation. Inflation occurs when the growth in the money supply is greater than the increase in real goods and services. Changes in the number of times the same dollar is spent in a year (which economists call the velocity of money) also can cause apparent inflation and deflation.

Both the Fed and the European Central Bank have, in essence, announced they are going to create whatever quantity of money they think will be required to increase employment, with the claim that we do not need to worry about inflation. Many monetary economists disagree, for good reasons. For example, former International Monetary Fund economist Warren Coats, who has a major role in creating many central banks and currency boards around the world, wrote last month: “The Federal Reserve’s latest round of quantitative easing (QE3) is not likely to help the U.S. economy’s recovery, but increases the risks of new asset bubbles and inflation.”

One can envision a world where there is both apparent price stability and no income taxes.

[hosepipe]

[ maybe one of them big hurrricanes will carry me up to heaven, hope they don’t have no govment up there. ]

Groovey but don’t be surprised, no democracy there..
Its a Kingdom with a King and everything..

Democrats are dieing to get there but will hate the government..
Lieing is outlawed, No sex, money.. or voting..
SO they will opt for HELL..

You know where literally ALL their leaders have gone..
So they will not have the think.. as before..