Volatility

February 6, 2011

End All Taxation

Filed under: American Revolution, Neo-feudalism — Russ @ 3:23 am

 

One of the ways government keeps decent citizens in thrall is with false promises to do good. Therefore many people who otherwise recognize the nature of this kleptocracy still believe in taxation and dream of making the tax code more progressive (i.e. reforming it). They dream of the good things government can do with this money, and fear how the enemies of worthwhile programs like entitlements, libraries, parks, etc. would use the absence of taxation as an excuse to slash spending for those.
 
But I submit that the following are clearly true:
 
1. This system will never render the tax code more progressive. Every trend is in the opposite direction. On the contrary, even the most cherished liberal leaders are calling to make it more regressive.
 
2. Regardless of how nominally progressive or regressive the tax code is, almost all of the discretionary spending is used in a radically regressive, indeed reactionary way. It’s handed over to America’s corporate enemies as welfare looting. It’s thrown down corporatist ratholes which do no citizen any good. It’s used to build up the instruments of violence and totalitarianism against us.
 
So whatever the nominal character of the code, under kleptocracy all taxation is objectively regressive.
 
3. As for nondiscretionary spending on entitlements, and beyond that what little worthwhile discretionary spending there still is, this government has made it as clear as day that it intends to gut all of this. Its agenda is total austerity for the people, while the corporate welfare plunder project continues.
 
This ought to lay to rest fears about the enemies of worthwhile programs. Those enemies are already committed to a total assault on us. Nothing we can do can encourage them further. If we try to fight by arguing that more rational and just taxation can render worthwhile spending sustainable, that’s just fighting a doomed war of attrition on their battlefield.
 
4. Meanwhile, the government clearly does not need taxation in order to spend, nor does it worry about deficits or the debt. Everyone within the system agrees there’s infinite money for the Bailout, wars, Pentagon budgets, Big Ag subsidies, the drug war, the police/prison/surveillance complex, and every other kind of worthless corporate welfare, not to mention tax cuts for corporations and the rich. Therefore everyone agrees there’s infinite money, period. So there’s no amount the government could borrow or print to pay for public interest programs which could make a dent in that infinity, any more than the Bailout is considered to.
 
So what should we conclude from this? It’s obvious this government will spend less and less on the public good and more and more on further strengthening America’s enemies. Every cent taxed from us is simply stolen, and this at a time where the importance of every cent becomes more and more critical to us. (That’s no accident, of course.) Meanwhile the government has demonstrated its will to endlessly borrow whatever it wants, forcing the people to stand surety for the odious debt.
 
Therefore, I defy anyone to tell me why it’s still in the people’s interest for taxation to exist at all, or how under kleptocracy taxation has any legitimacy at all.
 
The fact is, the only reason taxation still exists at all is to enforce social and economic control. Especially, as we relocalize our economies and rely more and more on the informal economy, barter, alternative currencies and other elements of economic democratization, the government will want to force us with whips back into the cash economy so we can pay taxes, which have to be paid in cash. That’s classic colonialist policy. Taxation is that social whip.
 
On the other hand, a call to end all taxation could have wide political appeal and even serve as a wedge issue in the broader ideological struggle. It would be a sound measure from the point of view of our interest. Let the kleptocracy borrow or print. If that eventually weakened the dollar’s reserve currency position, that too would be good for the democracy. Under this system we’re starving on the dollar, and there will be no way out for us trying to continue to ride the dollar. It must go down as part of the kleptocracy going down. We should be getting out of dollar-based investments anyway, and even if we wanted to cling to them, we’re being liquidated and forced out into penury anyway. So there’s point in clinging to delusions about the dollar system, which is just a form of clinging to delusions about the reform of kleptocracy, which is, as I said, one of the ways the kleptocracy keeps us in thrall.
  .
Here’s an earlier post on the same subject.
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6 Comments

  1. Under neocolonialism, there is no “trickle down”. Money flows from the bottom to the top.

    The US tax system is a tithing system, under which the working class is forced to pay the ownership class (also known as the occupying force). The tax US tax system is used by TPTB as a vehicle to reward and punish.

    In 2008, Goldman Sachs paid 1% in corporate taxes. In 2009, after making an $11 billion dollar profit, GE paid nothing to the USG in taxes. Jeff Immelt, GE CEO, recently became the leader of Obama’s “President’s Economic Recover Advisory Board”, taking the place of Administration critique, Paul Volcker. He will not advise the President that the only hope for a recovery is a massive clawback of the wealth confiscated by the corporatists.

    One-third of the world’s wealth is held in offshore accounts. Most of it is untaxed.

    The wealthiest 400 Americans have assets equal to the least wealthy 150,000,000 Americans,or about 50% of the US population. 51% of Americans are on some form of Government assistance. The American aggregate debt, including entitlement liabilities, lies somewhere between $100 and $200 trillion, but who’s counting?

    The US economy has as much chance of staying aloft as does a one-winged bumblebee.

    Comment by black swan — February 7, 2011 @ 6:26 am

    • Yup. Taxation has nothing to do with fiscal solvency, let alone worthwhile public interest spending. It’s all about socioeconomic control.

      The financialized “economy” is more like a one armed zombie which Bush/Obama/Paulson/Geithner/Bernanke managed to heave a foot into the air with a loud “oomph”. It’ll be coming back down soon.

      (They already trampled the real economy into the dust.)

      Comment by Russ — February 7, 2011 @ 9:37 am

  2. According to MMT, taxes are “absolutely” necessary. First, they establish the legality and legitimacy of the currency. You must pay taxes and only the fiat currency is accepted for payment of taxes. Coercion lies at the very core of the system: it is the driving mechanism. Secondly, taxes theoretically serve to diminish aggregate demand once full employment-productive capacity is reached and thus serve to forestall inflation.

    At any rate, it is not convenient to acknowledge this truth, because taxation serves not so much to enrich the rich further–taxes are just debits on the spreadsheets–but to keep the public in debt. It is a means of social control. After all, inflation is hardly a threat right now, but the government keeps taxing anyway. Moreover, this theoretical use of taxes as brakes on the system is just that: to change tax laws requires a lengthy political process; it doesn’t work like the so-called automatic stabilizers in the economy. Fiat money is theoretically merely a way to keep faciliate the exchanges and accounts of the market process of buying and selling economic goods. But in practice, it functions to greatly empower government, and as Rothschild said, “Give me control of a nation’s money and I care not who makes its laws”

    Comment by Jim — February 28, 2011 @ 8:07 pm

  3. […] money we have.   (Previous posts on my No Taxes position include No Taxes on the Non-Rich and End All Taxation.)   There’s no point fearing that without taxation the criminals will have a pretext to gut […]

    Pingback by Freakshow: Deficits, Taxes, Austerity « Volatility — July 19, 2011 @ 1:28 am

  4. […] money we have. (Previous posts on my No Taxes position include No Taxes on the Non-Rich and End All Taxation.) There’s no point fearing that without taxation the criminals will have a pretext to gut […]

    Pingback by Volatility, “Freakshow: Deficits, Taxes, Austerity” | Robert Lindsay — July 22, 2011 @ 2:59 pm


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