The Tax Resources Blog

Posts Tagged ‘politics’

Federal Income Tax By Income

Question: How much stronger would the economy be if we abolished the federal reserve, and the federal income tax?

The entire federal income tax goes to paying the interest on the national debt (held by the fed. reserve).
Hasta; The board of directors at the federal reserve are anything but poor.
Mike, how are they doing at keeping our economy stable?

Answer: Our economy would revert back to the types of financial instabilities that caused a series of bank crisis monetary difficulties that occurred prior to the creation of the Federal Reserve.

The major economic benefit of having a central bank is to control the money supply. This prevents the inflationary and deflationary crisises that continually occurred between 1890 and 1910.

Another issue is that without the Federal Reserve – the only way to cash a check would be to take it to a branch of the bank that issued it. Intrabank check clearing is another major function of the Fed.

Haven’t you noticed that most of the people who want to get rid of the fed have no real idea as to what its economic functions are?

Excel Busn Math 42: Federal Income Tax Payroll Deduction