Former IRS Special Agent: 0% of Your Federal Tax Dollars goes into Funding Government

The Grace Commission Report[3] was presented to Congress in January 1984. The report claimed that if its recommendations were followed, $424 billion could be saved in three years, rising to $1.9 trillion per year by the year 2000. It estimated that the national debt, without these reforms, would rise to $13 trillion by the year 2000, while with the reforms they projected it would rise to only $2.5 trillion.[4] The report’s recommendations that intruded into policy were ignored by Congress, but many other efficiency recommendations were considered and some were implemented.[5] The debt reached $5.8 trillion in the year 2000.[6][7] The national debt reached 13 trillion after the subprime mortgage-collateralized debt obligation crisis in 2008.

The report said that one-third of all income taxes are consumed by waste and inefficiency in the federal government, and another one-third escapes collection owing to the underground economy. “With two thirds of everyone’s personal income taxes wasted or not collected, 100 percent of what is collected is absorbed solely by interest on the federal debt and by federal government contributions to transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services [that] taxpayers expect from their government.”[4]

I think “transfer payments” refers to pension plans.   In other words, this fraction of income tax revenues is spent on maintaining the illusion of financial health by paying off the obligations due to current retirees and postponing insolvency for later.   This is the strategy of a pyramid scheme.   Which is exactly what it is.   But until it collapses, it’s a great way to funnel money to the holders of “government debt,” which is itself a magician’s trick enforced through the mechanics of currency creation.   See and

H.R. 25: To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States.
Sponsor: Rep. Woodall, Rob [R-GA-7] | Cosponsor statistics: 27 current.

Cosponsor       Date Cosponsored
Rep. Banks, Jim [R-IN-3]* 01/03/2019
Rep. Bilirakis, Gus M. [R-FL-12]* 01/03/2019
Rep. Bishop, Rob [R-UT-1]* 01/03/2019
Rep. Brooks, Mo [R-AL-5]* 01/03/2019
Rep. Carter, John R. [R-TX-31]* 01/03/2019
Rep. Chabot, Steve [R-OH-1]* 01/03/2019
Rep. Conaway, K. Michael [R-TX-11]* 01/03/2019
Rep. DesJarlais, Scott [R-TN-4]* 01/03/2019
Rep. Duncan, Jeff [R-SC-3]* 01/03/2019
Rep. Foxx, Virginia [R-NC-5]* 01/03/2019
Rep. Gaetz, Matt [R-FL-1]* 01/03/2019
Rep. Graves, Tom [R-GA-14]* 01/03/2019
Rep. Hice, Jody B. [R-GA-10]* 01/03/2019
Rep. King, Steve [R-IA-4]* 01/03/2019
Rep. Loudermilk, Barry [R-GA-11]* 01/03/2019
Rep. Lucas, Frank D. [R-OK-3]* 01/03/2019
Rep. Massie, Thomas [R-KY-4]* 01/03/2019
Rep. Mullin, Markwayne [R-OK-2]* 01/03/2019
Rep. Posey, Bill [R-FL-8]* 01/03/2019
Rep. Roe, David P. [R-TN-1]* 01/03/2019
Rep. Wittman, Robert J. [R-VA-1]* 01/03/2019
Rep. Yoho, Ted S. [R-FL-3]* 01/03/2019
Rep. Young, Don [R-AK-At Large]* 01/03/2019
Rep. Collins, Doug [R-GA-9]* 01/03/2019
Rep. Walberg, Tim [R-MI-7]* 01/03/2019
Rep. Davidson, Warren [R-OH-8] 01/09/2019
Rep. Carter, Earl L. “Buddy” [R-GA-1] 01/11/2019

National sales tax?   This is regressive, the burden will be distributed thoughout the population instead of skimmed from the top where surplus wealth is most concentrated.  How about tariffs and corporate income taxes?   This is how the federal government used to fund itself.   Tariffs encourage domestic economic production, and corporate profits are otherwise funneled into the coffers of the already wealthy and aren’t recirculated as readily as personal income.   Sustainable economics is based on monetary recycling.

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