How come We Pay Taxes When They're Able To Just Create Money Out of Thin Air

By: TakeshiYashima

I find really intriguing picture asking this point in my wall in facebook. This is,

"Why All of us Pay Taxes Any time they could Merely create money?"

This is extremely good point...

Everyone, I mean all of us must at least look at the reason this is actually the case.

I've already my version of the answer to this point. In this time, Let me reveal my viewpoint / answer to this critical question. In order for people to grasp my answer, we all should know how government collect our hard earned cash.

Government will get hold of our hard earned money from all of us to finance its debt in mere two approaches: 1st: Tax and 2nd: Inflation. Huge majority of people usually misunderstand that basically way government may get hold of revenue is via 1st way: taxation. But, it seriously isn't correct. In reality, tax isn't main way how government funds its debt. Main source of this is actually option #2: via inflation.

Then, question will become...

Why imposing taxes is not actually used by our politicians?

Because taxes is noticeable to the people, this isn't government's favorite approach to gain access to our money since even financially ignorant people can in fact notice what they're doing to these people. Powers that be is aware that if they try to impose taxes excessively to public, they will be thrown out from the office.

So, Big brother really likes 2nd option: "Inflation = Money Printing" to fund their debt given that just few people grasp inflation (Normal people can not see this) and government will get away with many of people by deceiving with this particular approach.

Though it looks that second option is safe to people considering that people do not need to pay additional taxes, cost of all things will eventually rise considering that there will be considerably more money in circulation once they create money. These two methods will in the end produce identical outcome: People can't afford as much.

Congratulations, you recognize there's two main ways of powers that be to get (Steal??) our hard earned money and here's my answer to this extremely question. My answer to that is:

Tax is just a smoke screen. In case government will never tax individuals, public will suspect exactly where the heck all those funds can come from. Very last thing government wants public grasp is actually the truth that inflation is really another form of tax. Government is scared that government can no longer trick public conveniently should public of you and I comprehend the fact that inflation is another and most subtle type of taxation...

This is actually the reason why big brother never ever shares this to the public because continuity of the government relies on ignorance of people. As long as people of you and I don't get such topics as economics, finance and money, powers that be will continue to escape with nearly all of its wrong doing by simply taking advantage of our ignorance. And, believe me...

You'll not like consequence of the end game...

That's the reason why financial education is essential for every single person in the face of the world...

Informed yourself now...

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Takeshi "Ken" Yashima is an investor as well as a wealth strategist. His financial education website shares his insight about the current global economic situation as well as the current investment strategies to investors and his subscribers. Download a free E-book and special report at

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