61. Tax in Money

Tax in Money
Bob Komives
::

Our government offers negotiable currency
to induce us to play our roles--

to provide goods and
to provide services
to support communal efforts.

In short,
our government mints and spends our money.

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Most of us were taught that money is a means of exchange. Yes, once in the marketplace, it does simplify the exchange of goods and services. However, when first spent by government it is not a substitute for goods and services, but rather a mobile tax. Wherever our government chooses to spend it, our new money changes how we play our societal roles and allocate our resources. Each new dollar spent by our government reduces the market share controlled by old dollars --it reduces the percentage of marketplace goods and services that people holding old dollars can acquire. This is taxation, just as it would be if the government came to the door and physically collected the goods and services. Physical collection is unnecessary because our individual selfish acts, in pursuit of the dollars, collect the goods and services and take them to new places in the economy. Congress could, for example, decide to buy the July 4th holiday, compensating employers in cash. That would be a tax in money. Dollars spent by our government would attract employers and employees to a 4th-of-July holiday.

Most national governments mint and caretake a national currency. When they spend new money they tax their nations; when they spend new money they create income. Thus, the common balanced budget formula, "Spend = Income" is a tautology. It says only:

"Spend = Spend"
"Income = Income"

:: Bob Komives, Fort Collins © 2006 :: Plum Local IV :: 61. Tax in Money ::
With attribution these words may be freely shared, but permission
is required if quoted in an item for sale or rent

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