THE PRACTICAL WAY TO ABOLISH THE INCOME TAX
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 ruinous inflation.
Can one envision a world where there is both apparent price stability and no income taxes? The following is to encourage you to think about possible alternatives to the existing economic order.