"I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle..."
Today I have been working on my income tax returns. That brings to mind the
relationship between a non-POM citizen and the government of a non-POM State.
As you know if you have been reading the POM series of articles, a POM or
physical object money is the only kind of money ever used in any society or
nation with any kind of government. Money which is or represents physical object(s)
can be taken from you against your will. POM can be used to buy any goods or
services from anyone. Therefore, everyone wants the POM you have or might have
some day. The "everyone" includes your neighborhood government. From
the township or county level through the State to the federal level of government
there are a wide variety of taxes and fees which the various governmental units
levy upon the citizens and anyone else who happens their way. This is motivated
by the nature of a POM and is made possible by the nature of a POM and the
use of a POM is how the money is collected by appropriate means and otherwise.
But what about that non-POM society which several of these POM articles have
been talking about? If such a society has a government, doesn't it need to
collect taxes to operate?
A non-POM is not a physical object and it does not represent a physical object.
When earned, this money simply comes into existence in the worker's account
by virtue of the number there increasing in size. That increase in the money
supply doesn't come from any other money account. The people whose decisions
result in the money being there do not lose any money as a result of crediting
the earner's account. When the account owner spends money, that money is deducted
from the account balance. It is not transferred to another account it is simply
deducted from the owner's account. That's it. No more, no less. Thus money
spent simply ceases to exist, poof! (I've always wanted to use that word in
an article. :-) )
Therefore, even if a non-POM government wanted to take money from a citizen
(or someone else) it would have no way of doing so. For one reason, only individuals
are account owners. There is no "Uncle Sam" account representing
the government. For a second reason, this money can't be moved from one account
to another. This money is not that kind of money.
So how does government pay its bills?
The government has no bills. The non-POM government has no money and no budget.
The non-POM government cannot loan or borrow money. If some office of government
needs a desk for performing its paper work and someone chooses to give to that
office worker (not to the office but to the person using that office or occupying
that office) some desk and if that worker uses that desk to do work which deserves
to be paid, then the person who provided the desk will also be paid. So long
as that desk is useful in producing benefits to others, the person who gave
the desk will be paid. The office worker doesn't pay that person. The government
doesn't pay that person. Those whose job it is to appropriately add money to
the accounts of people who deserve that money are the ones who have the power/ability
to increase the account balances. And these "Payers" are
not a part of the government. They take orders from no one since they are the
only ones who can pay. What about the persons who provided the wood and metal
and tools to make the desk? Yes, they get paid also and in the same way, as
do those who moved the desk from the desk factory to the office. Of course
the government worker also is paid in that fashion. Therefore, the government
functions just fine without money.
In fact it functions much better without money because all those "desk
people" get paid only if that government worker is doing something which
actually produces a net benefit. Enforcing silly rules where they really don't
apply produces no benefit. Adding miles of red tape to procedures produces
no benefit. Being rude or insolent to the citizens who need the services of
that worker reduces the net benefit. In other words the better the job that
worker does, the more the worker gets paid and the more all those who contributed
that work getting done get paid. Workers who do well will have suppliers of
equipment and other resources asking them to accept their materials. Workers
who perform poorly find they have nothing to work with and someone else doing
the work in their place.
(As an aside, there would be remarkably few government workers since there
would be almost nothing for the government to do but that's a subject for some
So what taxes are collected? What about import or export taxes? Nope. No taxes
of any kind. What about property tax? No taxes of any kind. What about inheritance
tax? No taxes of any kind. What about… Didn't you hear what I said? No taxes
of any kind at any time for any reason by any level of government under any
circumstances. What part of no taxes didn't you understand?
Government in a non-POM economy has no taxes, no need for taxes, and no means
by which to collect taxes because no payer is going to pay for anyone to try
to collect taxes. Taxes just don't happen.
I hope that's clear. NO TAXES.
"Government always finds a need for whatever money it gets."
"A government that robs Peter to pay Paul can always depend on the support of Paul." ~~George Bernard Shaw
"It is bad to be oppressed by a minority, but it is worse to be oppressed by a majority. For there is a reserve of latent power in the masses which, if it is called into play, the minority can seldom resist. But from the absolute will of an entire people there is no appeal, no redemption, no refuge but treason." ~~Lord Acton
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