Hi Will, that's a good summary of the coercive and exploitative nature of national/official/government currencies, and how taxes are an essential element in that process. (Note that the Federal Reserve Act and the Income Tax Act were both passed around the same time). By forcing taxes to be paid using a particular "brand" of money, people are forced to enter the market in which to buy that brand of money, which we do mainly by selling our labor for money. That is one of the greatest obstacles we face in creating the kind of decentralized economies and exchange systems we need. If we are being “paid” in something other than official government money, the government has no legitimate claim on us to pay taxes using official money.
The same situation prevailed in Biblical times. The Temple Tax had to be paid using the Temple Shekel and the money changers in Jerusalem exploited the people in the process of exchanging for it.
The income tax that the IRS collects measures your tax liability in terms of your money income, but money is a claim to real value, not real valuable in itself. Yet, if you are paid “in kind” you have not received any money, but real value. Now the government wants you to somehow get money to pay tax on the “free market value” of the goods or services you received. They want it both ways—tax the claim AND tax the commitment.
Wells said. Things will keep coming back to this point (of Governmental overreach and lack of real services) as all this moves into digital formalization - with multitudes of vouchers all being exchangeable (e.g. https://viz.sarafu.network) directly and via pooling structures.
Do you remember an old video on Producer Credits? - must be ~10 years or more old by now.
Hi Will, that's a good summary of the coercive and exploitative nature of national/official/government currencies, and how taxes are an essential element in that process. (Note that the Federal Reserve Act and the Income Tax Act were both passed around the same time). By forcing taxes to be paid using a particular "brand" of money, people are forced to enter the market in which to buy that brand of money, which we do mainly by selling our labor for money. That is one of the greatest obstacles we face in creating the kind of decentralized economies and exchange systems we need. If we are being “paid” in something other than official government money, the government has no legitimate claim on us to pay taxes using official money.
The same situation prevailed in Biblical times. The Temple Tax had to be paid using the Temple Shekel and the money changers in Jerusalem exploited the people in the process of exchanging for it.
The income tax that the IRS collects measures your tax liability in terms of your money income, but money is a claim to real value, not real valuable in itself. Yet, if you are paid “in kind” you have not received any money, but real value. Now the government wants you to somehow get money to pay tax on the “free market value” of the goods or services you received. They want it both ways—tax the claim AND tax the commitment.
Wells said. Things will keep coming back to this point (of Governmental overreach and lack of real services) as all this moves into digital formalization - with multitudes of vouchers all being exchangeable (e.g. https://viz.sarafu.network) directly and via pooling structures.
Do you remember an old video on Producer Credits? - must be ~10 years or more old by now.
One of the most thought provoking articles on economics, money, and taxes I have read in a very long time. Thanks Will!