From the House of Commons Standing Committee on Banking and Commerce;

The government puts up interest bearing bonds out of which money is created and we pay the interest in the form of taxes.
The taxes are a direct draw on our energy and is what I mean by our credit. In other words, it is the tax payments that make the bonds good.
The taxes are a direct draw in that, you give 100% energy measured as gross pay and go home with after tax loss of energy in terms of net pay.

Now I have no problem that the government puts up bonds, but to hold me liable for its choice to put up interest bearing bonds (promises to pay) than issue interest free currency (promises to pay), that I take issue with.
That my friends is the crux of the matter. The government has no means to pay the interest and so what business did it have putting up interest bearing bonds in the first instance, let alone hold us liable when it had another option? That being interest free currency.
So as much as it may be claimed that we receive a benefit when we receive money (income), or the government did us a favour, or the people wanted to be paid for their work and is why we are liable for the interest payment, taxes; the fact that the government could issue interest free currency in the stead of debt money, must mute the claim.
In other words, if the government had of issued interest free currency the people would not be subject to taxation, but since it has not and authorizes the issue of debt money in the stead, it is not justification in my view that people be subject to income taxes.
However, taxes are not the subject of this message or purpose of this blog site; freedom from debt via interest free currency is.
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Filed under: Where Income Tax Goes In Canada

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