PKT message, Don't Cry for me "ArgentinO"

"I have never received a reply giving a logical reason why this could not or should not be done."

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The present tax system is voluntary to the extent that tax obligations are self-assessed and remitted. We can under assess and we can fail to remit. Enforcement is sporadic.

Typically new taxes, and what you propose is a new tax, do not replace but augment existing taxes. Undoubtedly, what you propose would increase the effective rate of taxation.

If the fundamental problem is a falling demand curve relative to the costs of production, the automatic "debiting" of transactional accounts could not fail to have the effect of reducing demand still further, exacerbating the problem.

Transactional accounts should probably be credited by the government not debited.

Look at Argentina. For the past four years and especially the past year they have suffered a massive contraction of their money supply. The fractional reserves in their banking system are not in pesos but dollars on deposit at the New York Fed. As each dollar leaves in foreign debt service or capital flight, more than a dollar in equivalent pesos is extracted from Argentina's domestic economy. During 2001 Argentina lost half of its dollar reserves.

In principle, they could have stabilized the situation without default on foreign debt. This could have been accomplished by "de-linking" their reserves from the dollar. As each dollar is extracted from Argentina in debt service or capital flight, a corresponding peso would be "credited" to transactional accounts, immediately augmenting demand in their domestic economy while at the same time preserving the reserve basis of their fractional reserve system.*

But what they have done is nail the final nail into the coffin of an already collapsed economy. They have defaulted on foreign debt, thereby closing off international aid and cooperation. And they have put severe restrictions on withdrawals from transactional accounts.

*Such a program must be accompanied in the long term by reasonable protection for local industry and checks against capital flight. Otherwise, dollar reserves at some point will become totally depleted. This is possible for a continental nation like Argentina which can produce most of what it consumes.

Argentina will still need to import some things and for that reason must export some things. For that we might look at the method utilized by the old Soviet Union which was essentially barter. The Soviet method avoided foreign trade and current account imbalences. In Argentina's case it would be a free enterprise market economy domestically dealing through barter internationally.

----Original Message Follows----

From: PBottissr@xxxxxxx

Subject: Re: OWNERSHIP: Re: HOMESTEAD: Wealth distribution and interest rates

Date: Wed, 16 Jan 2002 22:37:20 EST

I have been advocating the abolition of the IRS Tax Code and replce it with a "user fee" on the creation and movement of money. Collected by the banking industry by debiting every transaction when an account is debited. This concpet would reduce the total tax liability of any taxpayer to one dollar for for each onethousand dollars earned or spent. I have never received a reply giving a logical reason why this could not or shpould not be done. If anyone can show me a tax plan that would reduce the taxes further than this simple concept I will support it.Some of the negaative responses I get say that it sounds good but "they" will never let it happen. My answer to that is then "they" will have to go. Others answer that it is a tax and that we should not have to pay any tax to the State. My answer to that is this concept is as close as we can get to no taxes. If the answer to the question; can this be done is yes? Then the second question should it be done becomes academic. We ar!

e entering a new age where we mu

st break all the chains that bind us to the past and add a new freedom to the ones we now have, one that no nation has ever given to its citizens ECONOMIC FREEDOM pbottissr@xxxxxxx http://www.madashellclub.com