The Unequal Income Tax Treatment in the US - Brightwork Research & Analysis

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Executive Summary

The US Treasury creates money through issuing debt — or a government bond, not through directly issuing money itself.

Introduction

The income tax in the US was brought into existence with the creation of the Federal Reserve, and a major reason for this was to pay the interest on debt that would be incurred whenever the US sold bonds rather than creating its own money.

This is problematic because now the citizens are responsible for taxes, but the taxes are never collected evenly. Wealthy individuals and corporations always have the ability to invest in tax expertise that allows them to escape more of their mandated tax burden than the less wealthy.

How the Income Taxes Has Exploded in Size Since its Original 1%

Since the passage of the income tax, the tax code has become enormous and enormously complex. It places the tax burden on the average person far more than the wealthy.

If there were no private central bank, there would be no technical reason for taxes. There would still be a reason to reduce purchasing power with taxes, but not to pay the interest on the debt. Untaxed governments have been demonstrated in US history. When there has been no private central bank, there has been no taxation.

Guernsey, Nazi Germany, Lincoln’s Greenbacks, and many other examples illustrate that countries can issue increasing amounts of their own money without it becoming inflationary.