How to Eliminate All Taxes in the United States

[jaydee]

But -- wait for it -- there's one minor problem.

The annual debt service cost on the national debt is in the range of $200 billion ($4 trillion of debt at 5% interest rate).

It seems that, after debt service, there's only $175 billion left to fund the entire operations of all the governmental operations in the entire country.

There is no more "national debt" under this system. The federal government would be prohibited from "borrowing" money. So the whole "national debt" issue is removed from the equation.

[Nikki]

Okay, I'll play along with your little game: Where does today's $4 trillion national debt go?

Are the NESARA wizards going to wave their magic wands and make it go away?

[RyanMcC]

Okay, I'll play along with your little game: Where does today's $4 trillion national debt go?

Are the NESARA wizards going to wave their magic wands and make it go away?

Into today's actual national debt 2.5 times.

Current national debt:


Interest on the national debt is approx $400 billion per year. Source.

[Quixote]

The federal government would be prohibited from "borrowing" money. So the whole "national debt" issue is removed from the equation.

As Nikki pointed out earlier, banks get the money they lend out by borrowing it from their depositors. If the government, and by extension the nationalized banks, cannot borrow money, what will they lend?

The second problem, pointed out by Nikki and CKB, is that saying the national debt goes away does not make the national debt go away. The national debt would not go away just because the government quit borrowing. It has to be paid.

[jaydee]

As Nikki pointed out earlier, banks get the money they lend out by borrowing it from their depositors. If the government, and by extension the nationalized banks, cannot borrow money, what will they lend?

No, that's not how it works. Look up "fractional reserve lending".

All interest now paid is about five times all taxes paid. So only one fifth of that interest money would be required to eliminate all taxes.

[jg]

Sorry, jaydee, but you can not use the gross revenue or the total collected as the basis for the amount that will be available to spend.

The total interest paid is not the amount that the banks receive. In fact, if you look closely you may well find that the total interest paid number you are using includes the amounts the banks paid out as well as the amount they got in (depending on the source of the number).

The net that the banks get in after they pay out interest is not near enough to fund the goverment as I 'splained above.

Nope, it aint gonna work.

[Arthur Rubin]

Shouldn't this thread be moved to another forum? I can't decide whether it should be in Tax Protester, MLM, or Off-Topic.

[Prof]

Shouldn't this thread be moved to another forum? I can't decide whether it should be in Tax Protester, MLM, or Off-Topic.

We need a new topic: Idiotic Ravings?

Oh, and one observation: a substantial amount of consumer debt is not held by banks but by non-bank lenders like credit card issuers (even when affiliated with a bank, these are non-bank lenders), GMAC, GE, securitization pools (bond holders), private purchasers (e.g., debt in default purchasers), etc.