Reality

I get annoyed at all of the wealth re distributors trying to tax the rich. Trying to tax the rich is the reason the tax code is so confusing to the average person. You ever think this may be by design. After all most politician could be considered rich. Are they really going to punitively tax themselves?

The new call is to simplify the system. They want to remove a lot of deductions, stabilize the progressive rates, and lower corporate taxes. If we are going to keep the government manipulation tool known as the Federal Income Tax Code, then by all means try to reform it. However, at the end of the day we will still have a tiered tax structure that is biased towards moving income into non-taxable vehicles, or overseas. This is a nonproductive idea in my mind. You do not want to push money away from the revenue stream, you want to draw it towards the revenue stream. At the end of the day, the only people who will pay the actual tax is the person who is ignorant, forced, or if the cost of avoiding the tax is greater than the cost of compliance.

We have been taught that the government is noncompetitive. This is a fallacy. Everything has a competitive nature to it. By ignoring the fact that government is a competitive monopoly, we fall into the false illusion that if you tax the rich, they will pay it. The truth is that the rich will pay which ever cost them the least. If an accountant saves you $100,000. in taxes, you will gladly pay him $50,000 for his services. Likewise, if I can put $10,000,000 into a charitable trust, and pay myself a salary of $200,000 a year as the trustee, I would do it. This will allow me to invest, give, purchase property,  and hire who I wish as a nonprofit entity. As long as I follow the guidelines set up by the tax laws, all the future growth of my wealth within this structure would, then be free from taxes, except, on my income paid by the trust. And the trust can buy me that shiny new truck if I wish.

If we get into the game of tax reform, we are just playing a game of three card monty, and the Queen is already palmed. All they are doing is generating the bets(campaign contributions) from the marks. The last presidential election generated billions in campaign funds. How much tax revenue did this generate? Directly, probably none, indirectly, yes, most of that money went to buy services, somewhere further down the line someone may have paid a tax on money received. However, was this revenue generated offset by the deductibility of the charitable giving. Was the influence that this money generated worth the deduction. It undoubtedly was to the politicians, but not to the middle class.

The income tax system was set up to benefit politician, with tax free campaign funds, and tax deductible contributions, it heavily favors the professional politician. However, many of the elite have caught on to this nifty trick, The Koch Brother, and Moveon.org(George Soros) are the two most polarized examples of this. Correct me if I am wrong, but these are the rich you are saying you are going to tax. Get real people. They will pay what they believe they owe, nothing more.

That is why I believe in the Currency Use Tax(CUT). I know I have not conveyed this properly in the first version of the book, That version was written to just present the mechanics, not the concepts of competition, and the overall vision I had writing this book. I see the CUT Tax as a dynamic system that creates a competitive tax market. Many have pointed out that this tax can easily be bypassed, and I agree, that is the dynamic I wish to create. That is, that the tax will be paid because it is safer, convenient, and viewed as just by the payer. In other words it is a competitive tax. I will get more into to this in a future blog on banking. Mainly, I wanted to get into a discussion about Bruno. Not Bruno Mars, But Italian Dominican friar, Giordano Bruno.

Aside from being a Dominican friar, Bruno was a philosopher, mathematician, scientist, astrologer, and poet. His claim to fame is that he had a vision that lead him to believe that the Earth Centric vision of the universe was wrong. He believed that the stars were really individual suns and each had planets around them like ours, with intelligent life. This was pretty radical thinking during his time. It was one of the many beliefs he held, these beliefs inevitably lead the church to condemn him as a heretic, and burn him at the stake. However, ten years after his death, Galileo, created the first telescope, and that lead to the discovery that the Earth did revolve around the sun. Of course, this created problems for Galileo among the inquisitors. I marvel at this because, Bruno, was more right than the collective thinking of the day. And I see parallels in today's world. Even today, many see him not as a scientist, But a person with a religious vision, and happened to have a lucky guess. Some think that his quest for the divine lead him to a hypothesis that turned out to be right. Not that this could be the only logical conclusion that his mind could see, after a lifetime of studying the facts, and discounting no theory without contemplation.

Today, they may not burn you at the stake. However, that is only because they believe they could not get away with it. That does not preclude the collective powers of today from trying to shape knowledge. In effect they have been doing it for years. This is an ongoing quest to bend the will of the people through the selective application of knowledge. The biggest example I see is in the global warming movement. Not that I disagree, and that people can have an impact on climate. It is just that I don’t agree with their dire outcomes, the sources they point to, or their climate models. They seem to be more politically oriented, than based on any hard scientific model. Case in point would be the balance of CO2 as a greenhouse gas, while they largely ignore H2O, which has far larger effects than CO2. H2O drives all of our weather patterns, Why is it ignored?  To ignore water is to ignore the big picture, and water distribution has greatly varied in the past years. So yes, I believe the Global Warming crowd has an ulterior motive, other than saving the earth. Thus, I am resistant to their message. Science has been manipulated beyond the realm of finding the truth, into the realm of securing a religious/political belief. Or maybe they are just selling a product through fear.  

The main point I am trying to make is. Start thinking for yourself, and only trust the experts when you know their facts are right. As the slogan for AE sports says. “Challenge everything.” Everyone has an agenda, including me.