April 9, 2010
Most taxpayers have no idea what their federal income taxes actually provide. When I ask folks if they know where their IRS check goes I get answers from, “…it pays for the operation of the Federal Government.” to, “… hummm, I really don’t know.” Actually both answers are partially true. Why were the IRS and the Federal Reserve created by the same act of Congress — what is their relationship to the Federal Government?
About a year ago, I made the assertion that the Federal Reserve through the IRS has the power to tax directly by congressional action and indirectly by inflation. It is very easy to see when you understand the “not quite governmental, not quite private” structure of the Federal Reserve System and its taxing arm the IRS.
Here is how it works. Congress passes a law, the House appropriates the funds. The Federal Treasury Department prints the notes for the appropriation. Then the Federal Reserve purchases these notes/paper at the cost of printing, about 4 cents note. A $1bill, $100 bill, or $1000 bond, costs the same 4 cents. The Federal Reserve then loans this money back to the Federal Government at interest based on face value. This interest rate may fluctuate. The cash is then distributed to the regional Federal Reserve banks from which the appropriations are disseminated as per the Congressional mandate.
September 4, 2009
If you want to see a good estimate of how Obama's failed stimulus program affected you directly, go to this link and it will show you what came out of your pocket.
http://www.foxnews.com/topics/politics/ ... imulus.htm
Funny how a huge majority of people "don't approve" of the program that calculates the number for you. I guess people would rather our direct tax burden remain shrouded in mystery.
Every one who is seriously involved in the pursuit of science becomes convinced that a spirit is manifest in the laws of the Universe-a spirit vastly superior to that of man. - Albert Einstein
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