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Inflation Tax
Today,
the federal government burdens us with one of the most dangerous taxes
it can impose — the inflation tax. When the federal government finds
that it cannot afford its out-of-control spending, and is unwilling to
directly tax the public, it resorts simply to creating the money out of
thin air.
Inflating the money supply is the easiest form of financing the
government. The Federal Reserve, an unelected and unaccountable private
organization, pumps more dollars into the economy whenever it chooses.
Because the public is forced to accept these bills, the Fed essentially
gets away with legally counterfeiting. We cannot possibly expect the
government to control spending when it has a blank checkbook.
This
greatly benefits the politicians and special interests — they are able
to finance the massive welfare-warfare state. But how does this
inflation affect you?
Basic
economics tells us that the more there is of a good, the less valuable
it becomes. This is also true of money. The dollar is worth four cents
of what it was when the Federal Reserve was created in 1913.
Day by
day, every dollar you have is being devalued. You pay an inflation tax
without even realizing it because you are forced by a falling dollar to
pay more for goods and services.
The
disastrous fiscal policies of our own government, marked by shameless
deficit spending and Federal Reserve currency devaluation, are some of
the greatest threats facing our nation today. It is this one-two punch —
Congress spending more than it can tax or borrow, and the Treasury
printing money to make up the difference — that threatens to impoverish
us by further destroying the value of our dollars.
By
legalizing competing currencies, we can end the Federal Reserve’s
stranglehold on our money supply and begin to restore value to the
dollar. But Congress will continue to spend extravagantly until we the
people make our views known at the ballot box.
Debt
and taxes
Working
Americans like lower taxes. So do I. Lower taxes benefit all of us,
creating jobs and allowing us to make more decisions for ourselves about
our lives.
Whether
a tax cut reduces a single mother’s payroll taxes by $40 a month or
allows a business owner to save thousands in capital gains taxes and
hire more employees, that tax cut is a good thing. Lower taxes allow
more spending, saving, and investing which helps the economy — that
means all of us.
Real
conservatives have always supported low taxes and low spending.
But
today, too many politicians and lobbyists are spending America into
ruin. We are nine trillion dollars in debt as a nation. Our mounting
government debt endangers the financial future of our children and
grandchildren. If we don’t cut spending now, higher taxes and economic
disaster will be in their future — and yours.
In
addition, the Federal Reserve, our central bank, fosters runaway debt by
increasing the money supply — making each dollar in your pocket worth
less. The Fed is a private bank run by unelected officials who are not
required to be open or accountable to “we the people.”
Worse,
our economy and our very independence as a nation is increasingly in the
hands of foreign governments such as China and Saudi Arabia, because
their central banks also finance our runaway spending.
We
cannot continue to allow private banks, wasteful agencies, lobbyists,
corporations on welfare, and governments collecting foreign aid to
dictate the size of our ballooning budget. We need a new method to
prioritize our spending. It’s called the Constitution of the United
States.
read more Ron Paul on the Federal Reserve
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