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Tag: money

The IRS Expansion


IRS Logo

The organizations paying for ads opposing the IRS expansion and the hiring of more IRS agents are telling on themselves. They’re calling it a “shakedown”.

Let’s think about this for a minute. The IRS doesn’t take any more than they are legally allowed to, which in the U.S. these days is very little. This is the amount legally owed. Anyone who would call expansion of the IRS a shakedown is admitting that they are a tax cheat. They’re admitting to breaking the law and not paying their fair share. All such people are in the top ten percent of wealth in this country.

So who is paying for these ads? The ones I’ve seen are paid for by an organization called “Americans for Prosperity”. Great sounding name but who are they? Americans for Prosperity is the Koch Brothers’ propaganda outlet, funded by them. Are you a billionaire? A millionaire? No? Then this expansion doesn’t apply to you.

Americans for Prosperity produces ads that try to get normal middle-class people and the poor angry about issues that have nothing to do with them but do concern the Koch Brothers and their billions. Unless you’re a billionaire or expecting to become one soon, you’re being played. Keep this in mind the next time you see an ad from Americans for Prosperity.

The ads imply that the IRS engages in theft, when it’s the reverse. All the IRS does is enforce the tax code as set forth by Congress, nothing more. Those who cheat are the thieves, robbing the government of funds that would come to the middle-class and poor in the form of roads, highways, education, assistance, medical care, and security.

Ironically, it’s the richest people who can easily afford to pay their taxes that complain. The poor pay little tax, as it should be, but the Koch Brothers still want you to vote for things that benefit them, not you. Don’t be fooled by the name Americans for Prosperity. Whose prosperity? Yours? No.

Will the IRS be targeting the billionaires? Of course they will. Why would they come and audit you if you’re an ordinary wage earner, who pays their taxes with every paycheck? It would be a waste of time. It’s the ones who owe tens of millions of dollars on a hundred million in income that is worth the effort. These cases also require more manpower and smart auditors to untangle complex tax-dodging arrangements. That’s what those agents will be doing — exactly what the Koch Brothers and hundreds of others don’t want.

Tax rates in the U.S.A. are very low when compared to the rest of the developed world. They are very, very low when compared to the 1950s and 1960s when the U.S.A. was at it’s most prosperous. Republicans have been gutting the IRS for 30 years by reducing IRS funding and staff. Why? The intent is to hobble the IRS so their wealthy donors can cheat with impunity.

What’s more, it’s not even an expansion of the IRS if you look back 30 years. It’s the intent of Congress to restore funding and restore the IRS to an appropriate level. Again, unless you’re a billionaire or millionaire, none of this concerns you.

Raise Interest Rates!

Here’s some lateral thinking for you: Since late 2008, the central banks of the world have been pumping hundreds of billions of dollars into the world’s banking and financial institutions in order to stimulate economic activity and head off a recession / depression. This is the right thing to do in a fiat money system when faced with this economic situation. (I’m not going to discuss my views on fiat money, but a fiat money system is what we have so that’s what we’ve got to work with.)

However the worldwide money situation is bizarre right now, upside-down. The stimulus money, which is now some trillions of dollars, has not been stimulating like it ought to. Why? Because banks are not lending the money but are hoarding it. The banks of the world are sitting on well over a trillion dollars and are not lending it out. Why? Because interest rates are extremely low, near zero, and have been low for a long time. The banks are waiting for interest rates to go up which will raise the effective value of the cash they are hoarding and they will start lending again.

I propose that the Federal Reserve should raise interest rates and that this will stimulate lending and thus stimulate the economy. This sounds bizarre but given the upside-down state that the world’s money systems are in, I think it would work.

What do you think?

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