The US economy is being decimated in an undeclared war by the federal reserve and its subsidiary, the federal government. Income taxes are like putting molasses in a clock. Income taxes didn’t even exist before the fed was established and the federal govt did just fine with income from tariffs and other domestic economic cultivation. The grace commission under reagan discovered that 100% of income taxes are spent on interest on the fraudulent “national debt” (part of the double-whammy imposed by the fed, the other being imposed inflation) and on general fraud waste and abuse.
Remember the old movies about the ignorant uneducated hillbillies chasing off the “revenuers” who were there to collect income taxes? The hillbillies knew what was going on far better than americans do today. http://thoughtcrimeradio.net/2017/03/censored-ben-franklin-on-the-real-cause-of-the-american-revolution/
This guy puts capital gains and dividend taxes on the same level as income and sales taxes for some reason. Taxing the former does nothing to inhibit domestic trade and exempting them exacerbates the concentration of wealth which has the effect of removing money from the economy into bank vaults. But otherwise he has a good point. We don’t have to rely on the kindness of strangers to save ourselves from destitution. We just need to stop shooting ourselves in the foot.
A cursory glance at the WTO proceedings for applying tariffs and counter-tariffs as well as the many unintended consequences of managed trade, even if they are pro-American, show that this problem needs to be solved at a higher level, outside the paradigm of government-managed trade.
The solution is to radically liberalize trade, but not only internationally—the liberalization of domestic trade is more important.
Domestic trade? Mainstream economics and the mainstream media have indoctrinated us to believe that only nations trade. However, as with all aggregate economic statistics, this is nonsense. It is private companies and private individuals who trade, and it doesn’t really matter whether this is domestic or international.
f I order a couple of bars of Cailler Frigor Swiss chocolate on Amazon, I do the trading with the company that ships them to me from Europe through Amazon. I send them money, and they send me the product.
But the same is true if I buy a couple of domestically produced bars of Hershey’s—much cheaper but certainly not as good—from Amazon here in the United States.
Goods or services are exchanged for money, whether domestically or internationally. Every tax, tariff, or regulation that stands in the way of these transactions is hindering trade.
For domestic trade in the United States, the most important barriers to trade between individuals and companies are taxation on buying and selling goods and services (sales tax) and, more importantly, taxation on selling labor services (income tax)….
The corrupt fractional reserve fiat money system under the management of the Federal Reserve further prevents capital from finding the right places to invest, leading to overcapacity in sectors like real estate and a complete lack of infrastructure investment, to cite just one problem.
Add to this other regulations that limit or prohibit commercial transactions, especially in the labor market, and you get the picture that domestic trade is severely crippled and operating far below its potential.
It is ironic that most of the people who are ostensibly pushing for the liberalization of international trade—in reality, they merely want regulations to favor them—are most against the liberalization of trade domestically….
It’s not ironic, it’s very much in keeping with the the most important partitions of humanity, which are not national partitions but economic partitions. We aren’t “all in this together” when the ultra wealthy (not the 1% but the .001%) buys legislation that funnels the fruits of peasant labor to their wallets and to their corporate fictions which exploit foreign slaves to loot the domestic economy. We are in a trade war all right, just not with china.
Start a revolution: open a lemonade stand.