The purpose of taxes

["John Gelles" <johng@xxxxxxxxxx>]

        When we pay taxes the money collected serves only
        one purpose--to prevent hyperinflation.  The idea that
        this money is NECESSARY for government to pay
        it over to others -- in return for goods and services --
        is false.

        Private parties may need to collect or otherwise own
        money to buy things. But the sovereign state can spend
        fiat money into circulation--and should do so -- to avoid
        interest on loans it might otherwise seek or costs to collect
        taxes it might otherwise levy.

        Hyperinflation is fought in other ways too.  Production
        of things for sale lowers price and defeats hyuperinflation.
        If production is raised and price remains constant, there
        is an opening for additional government spending to
        match that added production.

        Likewise, savings that are not loaned to others (as in a
        mattress or a blocked account), also open the economy
        for still more government spending.

        Hence, taxation can be minimized to maximize production
        and liquid savings.

        Inflation, when it arrives hits specific item prices -- not
        all prices at once.  To the extent that necessities can be
        subsidized to produce an abundance of them, luxuries
        will be in short supply and can take the place of taxes
        -- that is, they will prevent hyperinflation in markets
        selling necessities -- as they absorb excess purchasing
        power created by government spending new money
        into circulation.

        We who want full employment and fair wages should
        note that neoliberals have turned a majority of voters
        against welfare state standards and practices by moving
        income taxes down from the very rich to the middle
        and working classes.

        That is why progressives no longer hold power in
        the US and the its western allies.  We should make
        sure voters know they need pay nothing for welfare
        state protections -- if debtless, taxless money (in the
        form of treasury notes) is once introduced to supple-
        ment banknotes used by partial reserve licensed
        commercial banking systems (like our Federal
        Reserve.

        PKT for years has been concerned with guaranteed
        jobs and income programs. Add to this the cost to
        defeat deflation and contraction after financial asset
        price bubbles burst. We are concerned, yet never
        discuss the political effect of taxing working and
        middle class voters when we contest with neoliberals
        for voter support and the political power to implement
        progressive reform.

        Is it not time this discussion forum took up the issue
        of how to pay for progressive reforms with something
        as attractive as lower taxes on the majority of voters.

            John Gelles