How can you be taxed when there is no tax?

Daniel J Towsey

http://my.opera.com/danieltowsey/blog/how-can-you-be-taxed-when-there-is-no-tax

Some thirty five years ago when I attended Seneca College in Toronto. The teacher assigned me to do a presentation in front of the class. She left it up to me to pick a topic.

So I decide to do some research on an idea I got when I read an old article about the fact that there was no income tax before the second world war.

The people were told that the Federal Government needed a temporary income tax to pay for the cost of the second world war. (Which was a huge lie)

So I wondered why we still had this tax and how was it possible for our government to function just fine before this new temporary federal income tax existed?

So I stood in front of the class and I asked the class the question “How can we be taxed when there is no tax?”

All the students in the class got the dumbest looks on their faces.

But a few braves ones spoke up and tried to answer this question. But none could, for every answer ended up being a tax.

So I let them off the hook and answered it for them.

I explained that in a real democracy the people own and control their government. In a real democracy the government has its own central bank (The Bank of Canada) and the government controls the distribution and manufacture of currency (Money, Dollars).

So this hidden tax is simple. Every-time the government produces currency and spends it.

It becomes a tax on the people. For money has no value until someone agrees to do work for this paper or electronic money.

Every-time the government spends money. It dilutes the value of the money you already possess. Which is known as inflation.

So in reality a government never needs to have a direct income tax on its people. For in a properly working democracy. The people supervise its governments actions to make sure they stay honest.

A responsible government knows that a balanced amount of new currency is always necessary to be injected into the economy.

But this has to be done at a level that does not cause inflation or devalue the money already in circulation.

But, you also need to know and understand that in a real democracy the government (people) own their country and all its natural resources. Also in a real democracy, which is also known as a commonwealth, The peoples governments. Be they local, provincial or Federal, own and control all essential public utilities, such as power, communications, trains, hospitals, airline, etc.

All these public utilities create income for the peoples governments. So that the governments do not ever need to tax the people to keep these essential services operating.

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