I was thinking this can only be acheived through a stable currency as the income tax first came along with the federal reserve act, where the system needs some escape valve to reduce inflation.
The reason I was thinking is that an income tax could only be possible in a fiat system. If the system was backed by gold - all money would eventually flow to the government (that doesn't produce) over time. In fiat they used the income tax to minimize money velocity that is intrinsically linked with inflation. The federal reserve only wants to steal 2% of your money otherwise you would notice. Now the cats out of the bag - and they are going to continually bail themselves out with more fresh cash reserves.
I always believed the US dollar is a house of cards. All reserve currencies fail due to Triffin's Dilemma, where there is tremendous pressure to export your dollars abroad by sacrifice your long term potential. The Iraq war was a consequence of Triffin as it wasn't to have posession of oil, but the war to price oil in US dollars.
I was thinking this can only be acheived through a stable currency as the income tax first came along with the federal reserve act, where the system needs some escape valve to reduce inflation.
The reason I was thinking is that an income tax could only be possible in a fiat system. If the system was backed by gold - all money would eventually flow to the government (that doesn't produce) over time. In fiat they used the income tax to minimize money velocity that is intrinsically linked with inflation. The federal reserve only wants to steal 2% of your money otherwise you would notice. Now the cats out of the bag - and they are going to continually bail themselves out with more fresh cash reserves.
I always believed the US dollar is a house of cards. All reserve currencies fail due to Triffin's Dilemma, where there is tremendous pressure to export your dollars abroad by sacrifice your long term potential. The Iraq war was a consequence of Triffin as it wasn't to have posession of oil, but the war to price oil in US dollars.