Taxing consumption will encourage thrift and savings, as well as promoting recycling and conservation. The sales tax will discourage unwise spending, thus reducing waste of our natural resources.
In simple terms of economic logic, to tax production through personal and corporate income taxes discourages the very things we should encourage.
You see folks, the Marxist, "progressive" income tax on labor and investors has turned America into a Marxist, socialist economic colony. We've become a colony by adopting a system that has failed in every society where it has been applied. "
Cut the Bankers Out of Money-Making
from The AmericanFreePress.net
Like a drug dealer who just cut off one of his best addicts because he's broke, Wall Street recently announced that Greece's debt rating has been lowered to junk status. This means that if the Greek government wants to borrow more money from international bankers, taxpayers there will now have to pay a lot more, assuming they will be able to even get a loan.
Of course, it was Wall Street that enabled the Greek government to borrow so much in the first place. Then it helped Greece's leaders to hide their liabilities from everyone.
Why is this issue important to the United States? As AMERICAN FREE PRESS has reported in recent issues, this country is not that far behind Greece based on projected federal deficits and the U.S. national debt. According to some estimates, each American taxpayer is on the hook for $113,000 to cover the principal on all of Washington's commitments, including Medicare, Social Security and the wars in Afghanistan and Iraq-and that doesn't even include the interest that will have to be paid to international bankers for years to come.
The talk right now in Europe is for Greece to leave the European Union so it can lick its wounds as it tries to pay down its debt, which has miracu-lously grown from $40 billion when the crisis first hit last month to $158 billion right now-and growing. That debt will still have to be borne by Greek taxpayers- the very people who have been victimized and deceived by their own government and Wall Street.
As we see it, the only real solution to the problem is to rip up that paper debt and run Wall Street out of the country, a move Americans should also make before the bankers lay even more claim to the land our forefathers fought and died to free.
But how will Greece and the United States be able to pay their bills if they can no longer borrow money?
Whatever you may think of President Abraham Lincoln's conduct during the War of Northern Aggression, he had the right idea when it came to paying his war bills. Greece and the United States-really, any government in any country around the world-have the power to issue their own interest-free currency. How will the people avoid trading corrupt bankers for corrupt bureaucrats? The treasury can simply issue an amount of currency commensurate with that country's gross domestic product. No more, no less.
Would you rather have crooked bankers issuing interest-bearing money or politicians you can replace at the ballot box issuing interest-free money? "
Even Bankers Fear Rising World Debt
By Christopher J. Petherick
Last month, the bankers to the world's central banks issued a dire warning that official debt is threatening to topple economies around the globe. It's a shocking study that concludes U.S. and European governments are ready to collapse as did the nation of Greece recently…
Sovereign debt-the fancy term for direct loans, bonds and other financing accrued by governments around the world-is out of control in industrialized countries, says the Bank of International Settlements (BIS) in a new report. The situation is so bad, claims the global financial institution that is the "bank for the central banks," in the years to come the United States and Europe could be facing the same disaster that befell Greece two months ago.
In a study, "The Future of Public Debt," BIS's chief economist Stephen Cecchetti writes: "The aftermath of the financial crisis is poised to bring a simmering fiscal problem in industrial economies to the boiling point."
For the past several months, the focus has been on the sovereign debt of the so-called "PIGS" countries- Portugal, Ireland, Greece and Spain. But, according to BIS, trouble is brewing for the largest economies in the world, namely the United States, Japan, England and all of Western Europe. According to BIS calculations, by the end of 2011, sovereign debt for these countries is expected to rise above 100 percent of their GDPs.
In the years following World War II, total U.S. debt actually exceeded GDP, thanks to the frenzied borrowing spree carried out by President Franklin D. Roosevelt to "stimulate" the economy and wage war in Europe. It was only the unprecedented productivity on the part of middle-class Americans in the 1950s that outpaced U.S. debt and brought it back under control.
As AFP has reported on numerous occasions, this is impossible today, given that the global plutocracy has gutted America's working class, replacing the highly skilled productive jobs once commonplace in America with low-skilled service sector work or no job at all.
In its study, BIS specifically looked at bond markets. In February, investors around the world had a "come to Jesus" moment when it was revealed that Goldman Sachs had concealed a huge amount of Greek debt through complicated financial derivatives called interest- rate swaps. They responded by shunning Greek debt, forcing a crisis that required European nations to step in with a multibillion-dollar bailout. As a result, investors have become highly suspicious of governmental accounting.
Cecchetti writes that these suspicions are expected to start showing up in bond markets. "The question is when markets will start putting pressure on governments, not if," writes Cecchetti. "When will investors start demanding a much higher compensation for holding increasingly large amounts of public debt?"
Making matters worse, when Wall Street collapsed, pension funds took a huge hit. Governments now have to chip in even more to cover the promises that have been made to retired bureaucrats and other civil servants. With dwindling tax revenues and high unemployment, debt is the only way governments can fund liabilities.
"Rapidly aging populations present a number of countries with the prospect of enormous future costs that are not wholly recognized in current budget projections," writes Cecchetti. "The size of these future obligations is anybody's guess."