According to Beardsley Ruml, Chairman of the New York Federal Reserve Bank, the federal government no longer needs to tax its citizens in order to generate revenue. At least that is what he told the American Bar Association during the last year of WWII.
And you thought the Federal Government taxed us in order to raise the funds necessary to conduct the business of government.
Well, hardly. That is, after all, not an illogical thought.
But as unbelievable as it may sound, the government has apparently not had to tax the citizens for over 70 years. This begs the question, if they don’t need our money to operate the government, why do they go through the hassle and trouble of collecting billions of dollars from millions of citizens who really could use the money for their families? Mr. Ruml answers this question, telling the lawyers of his day:
The necessity for a government to tax in order to maintain both its independence and its solvency is true for state and local governments, but it is not true for a national government. Two changes of the greatest consequence have occurred in the last twenty-five years which have substantially altered the position of the national state with respect to the financing of its current requirements. The first of these changes is the gaining o f vast new experience in the management o f central banks. The second change is the elimination, for domestic purposes, of the convertibility of the currency into gold.
The United States is a national state which has a central banking system, the Federal Reserve System, and whose currency, for domestic purposes, is not convertible into any commodity. It follows that our Federal Government has final freedom from the money market in meeting its financial requirements.
He goes on to explain the real purpose of taxation. In so doing he removes all doubt about the existence of a free market economy in these United States.
What Taxes Are Really For
Federal taxes can be made to serve four principal purposes of a social and economic character. These purposes are:
1. As an instrument of fiscal policy to help stabilize the purchasing power of the dollar;
2. To express public policy in the distribution of wealth and of income, as in the case of the progressive income and estate taxes;
3. To express public policy in subsidizing or in penalizing various industries and economic groups;
4. To isolate and assess directly the costs of certain national benefits, such as highways and social security.
As we knew all along, the real purpose of taxation is to manipulate our economy to discourage productive labor by taking money from those who have earned it and giving it to those who won't work.
This doesn't sound too far removed from God's pomises in Deuteronomy 28.
Deu 28:15 But it shall come to pass, if thou wilt not hearken unto the voice of the LORD thy God, to observe to do all his commandments and his statutes which I command thee this day; that all these curses shall come upon thee, and overtake thee:
Deu 28:31 Thine ox shall be slain before thine eyes, and thou shalt not eat thereof: thine ass shall be violently taken away from before thy face, and shall not be restored to thee: thy sheep shall be given unto thine enemies, and thou shalt have none to rescue them.
Deu 28:33 The fruit of thy land, and all thy labours, shall a nation which thou knowest not eat up; and thou shalt be only oppressed and crushed alway: