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When Greenspan reports that the fed rates will go up and force up interest rates because of the federal deficit and the need to attract lenders unless taxes are increased, then tell me he has no authority.

OK, he has not authority to tax. I don't know what the rest of your post means if indeed it has any meaning. Greenspan and the Fed watch the personal income deflator and manage only short term interest rates and reserves to keep that indicator in line. You won't see the Fed raising interest rates (or lowering them for that matter) unless the system of taxation affects the personal income deflator or the economy is thrown into a recession (in which case they'll only lower interest rates).

I just used my last reply to demonstrate that Greenspan does indeed have clout over the financial sector and hence, the congress. I agree with your assessment specifically with the example you raised but I think the last report or two indicates to me that Greenspan and the Feds job is becoming more complex with the falling dollar, budget deficit, and growing trade deficits. I think he implied that tax policy is part of the stabilizing force and that major changes in the way we are taxed is essentially out of the question now but a small increase in overall tax revenue is not and it could be achieved by way of a low sales tax.

I have been writing for over five years now that we will have a sales tax but we will still be taxed on income. The government needs our money, liberals need even more of it, but they will not allow a system that does not soak the "rich" or provide for progressivity. They will however, that is the liberals, vote for a tax that provides a "rebate" to the lazy, the weak, the stupid, and the useless. That is the main selling point to the lefties where they want tax cuts, really credits, for those who have a minimal income now. There are socialists who see the so-called "fairTax" as the vehicle to establish a BIG or Basic Income Guarantee in the USA and further the destruction of our republic and speed the path to communism.

Do you want to be part of this?

BTW, if you are in favor of a tax that is fair can you please identify a legal definition of "fair" or "fairness".