What would happen if the IRS and the Federal Reserve were abolished?
Posted by admin | Under Federal Reserve Monday Nov 17, 2008What 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.
Chaos.
The IRS handles all the tax math and checks businesses' records.
The Federal Reserve is the CENTRAL BANK. They literally control the money supply.
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The tax payers would throw a big party!
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The poor and middle class might get rich.
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I don't know, neither existed a 100years ago.
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we could finally stop intervening in foreign affairs where we dont belong since the government will lose all of its fun money.
we'd be able to start backing our currency with tangible commodities.
we'd have regain actual property ownership and general independence from the arbitrary power of govt.
we'd stop social planning dead in its tracks.
then we'd sing and dance in the streets all night like wild heathens.
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Freedom might be reestablished in America…
If the American People ever allow the banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers occupied. The issuing power of money should be taken from the bankers and restored to Congress and the people to whom it belongs. I sincerely believe the banking institutions having the issuing power of money are more dangerous to liberty than standing armies.
We are completely saddled and bridled, and the bank is so firmly mounted on us that we must go where they ill guide.
The dominion which the banking institutions have obtained over the minds of our citizens…must be broken, or it will break us. Thomas Jefferson
(Letter to James Monroe, January 1, 1815
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Yo NGC..the federal reserve bank IS a Private Corporation, it is not publicly owned even, it was estabilshed in 1914, and they do work for thier own profit.
Since they are separate entities, I'll answer each in turn.
Re: What would happen if the IRS was abolished?
How would the government collect revenues if the IRS was disbanded? I suppose someone in the Treasury department would be appointed head of an agency to collect revenue for the government and that person would be given the power to hire and fire the people necessary to carry out the collection of revenue for the government. However, that is not any different than the IRS. BTW, the IRS is a LOT older than 100 years. The Bureau of Internal Revenue, which was renamed the Internal Revenue Service, was created in 1862.
Re: What would happen if the Federal Reserve was abolished?
Who would control the money supply? Who would form economic policy? I suppose you think politicians would make good economic decisions. Looking back to the mid to late 1800s, we can see that big banks, working for their own interests, controlled the money supply. That time period also had more boom and bust cycles than we have had over the past 70 years. Which would you prefer? Commercial banks, working only for their own self-serving interests, making all economic decisions as to money supply with no governmental control, or a decentralized, central bank that tries to work for the best interest of the country, is controlled by a government agency and reports to Congress, and returns all profit to the U.S. Treasury. I definitely prefer the latter.
EDIT: Yo, JPEnergy, the belief that the Federal Reserve is a private corporation is conspiracy theory nonsense. The Federal Reserve was established by law in 1913. It started operations in 1914. It is controlled by the Board of Governors, members of which are appointed by the President and confirmed by the Senate. The Federal Reserve makes annual reports to Congress. Part of those reports are INDEPENDENTLY AUDITED FINANCIAL STATEMENTS. Those financial statements clearly show that the Federal Reserve RETURNS PROFITS TO THE U.S. TREASURY. In 2006, the Federal Reserve earned $36.5 billion. After expenses, and a statutory requirement to make the surplus fund equal to paid in capital, the Federal Reserve returned $29.1 billion to the U.S. Treasury.
http://www.federalreserve.gov/boarddocs/rptcongress/annual06/default.htm
http://www.federalreserve.gov/boarddocs/rptcongress/annual06/sec6/c3.htm
The 12 district banks are setup SIMILAR to private corporations, but with some important differences. First, the stock of the Federal Reserve banks is not sold on any market and it does not change in value. The stock has a $100 par value. The only holders of Federal Reserve stock are nationally-chartered or state-chartered banks. Nationally-chartered banks, like Bank of America, N.A. and National Bank of Arizona, are REQUIRED BY LAW to SUBSCRIBE to Federal Reserve bank stock. This makes them member banks. State banks may become members of the system if they meet certain requirements. The amount of stock a member bank must subscribe to is set by law to a percentage of the member bank's paid-in capital. The member bank may own no more or no less than this prescribed amount. Additionally, the stock confers no rights of ownership beyond the par value of the stock and a 6% annual dividend. If a federal reserve bank was dissolved by the Board of Governors, once the member banks of that district were paid back for their subscription to the stock plus any unpaid dividend, all other assets of the bank would become the property and responsibility of the U.S. Government. If the banks really were private entities, those assets would become the property of the member banks.
All of this is supported by LAW. You can read it at Title 12 USC Chapter 3. http://www.law.cornell.edu/uscode/html/uscode12/usc_sup_01_12_10_3.html
Now, it must be noted that the Federal Reserve district banks are considered not to be government agencies IN CERTAIN INSTANCES. Mainly, this is because the Federal Reserve system is designed to be independent of the government to prevent political influence. However, the Federal Reserve was created by an act of Congress, it operates to act in the best interest of the economy and the government, it is reportable to the government, and it can be dissolved by an act of Congress.
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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.
References :