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What would happen if the IRS and the Federal Reserve were abolished?

The economy would begin a long process of recovery from the damage caused by the Federal Reserve, and unelected central bankers would no longer hold unchecked power over our government and all of our commerce.

The transition would not be pleasant, since the current illusion of prosperity is the result of the artificial bubbles and additional currency created by the Fed. At any time, the Fed could pull the plug on our entire economy, which is no power that should have ever been granted to private bankers in the first place. In their absence, things will get worse before they get better, and the bankers and elitists will be sure to blame it on the absence of the Fed, but I assure you it will have been the result of the long-term damage done by the Fed while it existed!

The IRS never had a right to exist in the first place, and it would not be missed. Since The Fed was disbanded too, there would be no need for the Income Tax OR the IRS, since the IRS collects income tax in order to pay private bankers for the interest charged to the Treasury on currency created by the Federal Reserve. If the Treasury issued its own currency, the income tax would not be necessary.

All other government programs would continue being funded, as they always have been, through other sources (state and local taxes, apportioned taxes, commodity taxes etc.), and now that the Fed and IRS are gone, the taxpayers would have a lot more $$$ leftover to pay into extra programs for their own communities, if they chose to. Not only that, but in the absence of the Fed, the government could return to a sound monetary policy instead of our current fractional reserve system which causes inflation and inevitable devaluation of currency.

The Treasury would regain its rightful Constitutional authority to issue its own currency, without any interest, and hope would be restored to America.

The economy would begin to stabilize, and the middle class would begin to flourish again like it once did.

I (among many others) anticipate an interest rate cut at the next Federal Reserve meeting in two weeks. I'm interested in a house and want to make an offer, but I'm hesitant to do so because I don't want to be locked in before a rate cut for obvious reasons.

Could I put a statement in the Real Estate contract addendum such as "Seller will accept pre-approved buyer's offer, but will not require financial arrangements until September 20,2007."?

How long after a rate cut will it take for lenders to lower their rates?

Advice?

the rate cut is only for short term long term mortgages will have little noticeable effect. They base it more on your credit history and how much you can put down than the fed reserve.

Even Cavuto realizes Ron Paul is a true fiscal conservative.

http://video.google.com/videoplay?docid=6507136891691870450

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Surley, it goes against human rights when citizens pay taxes into a privately owned Bank? The Federal reserve is owned by a few private individuals! All Taxes should be paid into and monitored by a Proper Tax department. Not by International Bankers!!

Aw, aren't conspiracy theorists cute? Take a bunch of unrelated facts, mix them all together and out spews nothing resembling the truth.

First, taxes are paid to the government. The IRS, which is a government agency, collects those taxes.

Second, the statement, "The Federal Reserve is owned by a few private individuals", has absolutely no basis in fact. The Federal Reserve was created by a law passed by Congress. It is governed by a Board of Governors, which are appointed by the President and confirmed by the Senate. This is similar to the appointment of federal judges and some other federal positions. There are twelve district banks under the Board of Governors. These banks are setup SIMILAR to corporations and are given corporate powers so they can be INDEPENDENT of political influence. Subscription to shares of the Federal Reserve district bank stock is a REQUIREMENT OF MEMBERSHIP in the Federal Reserve system. Private individuals, corporations, foreign governments, etc. are not allowed to buy or hold Federal Reserve stock. The only holders of Federal Reserve district bank stock are nationally chartered banks and some state chartered banks. BY LAW, ALL NATIONALLY-CHARTERED BANKS ARE REQUIRED TO SUBSCRIBE to Federal Reserve district bank stock. The amount they must subscribe to is set by law to a percentage of their paid-in capital. They may hold no more and no less than the required amount. They may not trade, sell, or even give away the stock they hold. The stock has a set par value of $100 per share and it does not change in value. The stock does not confer any rights of ownership beyond the par value. If a district bank were to be dissolved, the member banks would be reimbursed for their shares plus any unpaid dividend. All other assets would become the responsibility of the U.S. Government. This is in accordance to LAW.
http://www.law.cornell.edu/uscode/html/uscode12/usc_sup_01_12_10_3.html

The only tax money that goes to the Federal Reserve is the amount paid in interest on the small amount of U.S. Government debt held by the Federal Reserve. Once the Federal Reserve has paid its expenses, the excess amount (approximately 80% to 95%) is returned to the U.S. Treasury. This can clearly be seen on the independently audited financial statements of the Federal Reserve.
http://www.federalreserve.gov/boarddocs/rptcongress/annual07/pdf/audits.pdf
In 2007, the Federal Reserve collected $40.3 billion in interest from the U.S. Government on the securities it holds. It returned to the U.S. Treasury $34.6 billion.

Why is the federal reserve as well as the income tax considered unconstitutional by some?
Thanks for all answers in advance!

Question #86

Question(s) that have been deleted by me because they weren't numbered right- numbers 2, 16

Question(s) that have been found to be violations- numbers 40, 76

Question(s) that were deleted because no one answered them- none yet

Because people are stupid. They want all the services the government provides, but don't want to pay for it. All the tax avoiders and tax cheats are stealing money from you and I. For every dollar they don't pay or steal by filing false taxes, means we have to pay more. If people think that income taxes are illegal, stop driving on the roads. Jerks, all of them. I wish we could ship these lazy scum of the earth to Cuba or France. Get rid of these people. Waste of space and oxygen.

USA
Federal Reserve Bank

The Federal Reserve Act - passed by 3 (THREE) senators in a unanimous voice vote on 23 December 1913 - while everyone else was home for the holidays.
Some people think of the Federal Reserve Banks as United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders.

The Fed has followed a consistent policy of flooding the economy with easy money, leading to a missalocation of resources and an artificial “boom” followed by a recession or depression when the Fed-created bubble bursts.
From the Great Depression, to the stagflation of the seventies, to the burst of the dotcom bubble, to the housing market crisis, every economic downturn suffered by the country over the last 80 years can be traced to Federal Reserve policy.

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They are a private company, and not the United States bank.
United States actually BORROWS money from Federal Reserver (FED) and owes them $9 trillion in debt.

Their money is not backed in gold or silver bullion.
They print money as they please.

They have been blamed for causing the depression.
They have been blamed for our high taxes.
They have been blamed for purchasing political candidates.

Since their money has no value, it can cause the collapse of all financial institutions around the globe.

Countries on both sides of a war borrow money from the Federal Reserve.

Is there truth to these alegations?
Is there a better alternative currency?

You have raise several points. Let's take a look

- Re: Is the Federal Reserve to blame for high taxes?

No, that would be congress. They're in charge of tax laws.

- Re: They are a private company…

Not wholly true. Take a look at how it is organized.

The Federal Reserve System is organized with a government agency at the top (the Board of Governors), and branches beneath them that resemble private corporations. (http://www.federalreserveeducation.org/fed101/structure/ )

The Board of Governors are all appointed for 14-year terms by the president and confirmed by congress. It operates per it's charter and laws set by congress. it is overseen by congress. There is no structure or mechanism for private ownership at this level. Board members are forbidden by law to have any economic interest in a private bank. Per Wikipedia: "The Board of Governors of the Federal Reserve System is an independent federal government agency. "
(ref: http://en.wikipedia.org/wiki/Federal_Reserve#Legal_status_and_position_in_government )

The 12 branches, however, are organized similar to private corporations. Member banks are required to buy shares in their branch. They can vote for 6 of their 9 board members. The shares get a standard 6% dividend. These shares cannot be sold on the open market. All 'profit' from the Federal Reserve branches are turned over to the Treasury at the end of the year. Is this private ownership? It is the subject of much debate. The Fed says 'No' (ref: http://www.federalreserve.gov/generalinfo/faq/faqfrbanks.htm#6 ) but it remains the subject of much debate.

I equate the arrangement to a government agency (the Board of Governors) contracting out the day to day operations to a tightly controlled and regulated company.

- Re: and not the United States bank.

Try typing into Google "Define: Federal Reserve" to get over half dozen definitions from different sources. I don't think you'll find any that agree with your statement.

Can you cite any authoritative source that says the Federal Reserve is NOT the U.S. Central Bank?

- Re: United States actually BORROWS money from Federal Reserver (FED) and owes them $9 trillion in debt.

Your $9T for the national debt is about right. However, the amount held by the Federal Reserve is less than 10% of that, about $780B (ref: http://www.federalreserve.gov/Releases/h41/Current/)

- Re: Their money is not backed in gold or silver bullion.

True for most intents and purpose. However you might be able to win a bar bet by taking a contrary position here.

All Fed notes have to be backed by something of value. Most of that is T-bills. But, believe it or not, there is a small amount backed by gold.

Need proof? Take a look at the Fed balance sheet under "Collateral held against Federal Reserve notes". Of the $771B currency in circulation, $11B is backed by gold (the rest is T-bills). (ref: http://www.federalreserve.gov/Releases/h41/Current/)

- Re: They print money as they please.

Technically the Bureau of Engraving cannot accept orders directly from the Fed. The Fed submits requests for currency to the Treasury for approval. The Treasury then pass it on.

- Re: They have been blamed for causing the depression.

"Caused" is probably strong. "Contributed to" or "exasperated" is probably more accurate.

- Re: They have been blamed for purchasing political candidates.

That one didn't show up on the 'list of expenses' in the annual report but I may have missed it.

- Re: Since their money has no value…

'Value' is a subjective opinion. Most people who work for a living think it does have value. They probably appreciate that their grocer and landlord thing so always.

- Re: Countries on both sides of a war borrow money from the Federal Reserve.

Their balance sheet does not showing any holding of loans for foreign countries. Which countries do you think borrow from the Fed Res?

- Re: Is there a better alternative currency?

There is always room for improvement…

I work at a bank and i receive dollar notes, uncirculated. The notes come in 1,000 plastic wraps from the Federal Reserve Bank. I also have circulated bills with the same wrapping from the fed. In our bank the only bills we turn in are either counterfit potentials or extremely worn notes.

The Federal Reserve branches act as the banker's bank for currency.

All member banks maintain account balances at the Fed.

When your bank needs currency, they send a request for withdrawl. The Fed sends the requested currency and debits their account.

When the bank has excess currency, they send it to the local Fed branch where it is credited to their account. It sounds like your bank does not get a lot of excess currency, probably because your customers are not cash-businesses. So demand for currency exceeds the currency deposits that come in

Fed branches get their currency reserves from two sources:
1) Old bills from banks depositing excess currency
2) New bills from the Bureau of Engraving

When old bills are received, they are inspected by hand and machine. If they are worn out, they are destroyed. If they are still usable, they are put back into the currency reserve for re-distribution.

When the Fed determines that currency reserves are low, they order new currency from the Bureau of Engraving

Ron Paul takes on evil fed chairman Ben Bernanke. Opening Statement and Q&A.

digg it
http://digg.com/business_finance/Ron_Paul_vs_Ben_Bernanke_4

http://ronpaulnews.net/

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Increasing the money supply makes each dollar already in circulation worth less. Everytime the Fed prints up 450 billion more in cash for the Zionist wars of aggression in Iraq and Afghanistan, our currency becomes weaker. They want to blame it on high oil prices and home foreclosures, but that is just a smokescreen. When will Americans wake up and boot the Federal Reserve which is really just a Zionist-owned private bank?

great question… and i agree 100%… our money is worth less and less everyday….america does need to wake up to this fact before we are in severe finacial ruin… we are already on our way.