2 reasons why the ruling class need taxes

Since the ruling class (government + central bank cartel) monopolize the money supply through the threat of force, one can’t help but wonder why they need to tax the same currencies that they are supposed to control. It’s not like they need the money, if they can create money out of thin air, right?

Think about it…

You play a game of Monopoly against billions of people, but you’re on cheat mode. You get to print all the “money” you want, control its supply, control its cost (interest rate), and forbid anyone from using alternative forms of transaction. All purchases must occur with your currency. With this almost god-like power, you essentially own everything. Still, you allow your plebs some freedom and false sense of ownership so that they run businesses, and that someone can produce things for you. There’s no value in owning everything when nobody is there to produce stuff with it.

So here is the question:

If you can create as much currency as you want, and people are forced to accept your paper-money as legal tender, why do you need taxation on top of that? You obviously don’t need the money. So why does taxation exist?

There are two reasons why taxation exists in this unfair uncivilized money-counterfeiting model that we’re perpetuating (with willing participation and complicity):

1. Taxes are the only thing that grant perceived “value” to the fake Monopoly “money” that the world economy currently runs on. If businesses are forced (through the threat of violence) to pay taxes in the currency that the ruling class alone get to counterfeit, then businesses are forced to charge their products and services with this valueless currency. This limits the use of alternative modes of transaction, such as precious metals, cryptocurrencies, and bartering. If business are forced to pay taxes in dollars, then they have no choice but to charge their customers in dollars. If customers can only buy in dollars, then they accept dollars as their wages. And so, the fake currency becomes “valuable” without any organic value or natural emergence. If there were no taxes, the business owners would find alternative organic modes of transaction. Why would they use fake paper money and fake digital account balances that lose their value by the second? Why would they not choose to conduct their business and to save value using modes of transaction that actually have value in and of themselves? The emergence of cryptocurrencies proved that a free unregulated market can always adapt… as long as it has some freedom.

2. Taxes act as a deflationary measure that keeps inflation somewhat in check. Counterfeiting money only dilutes each currency unit’s perceived “value”. The more units of currency represent an economy, the less each unit “values”. This reduction of value with each money supply increase is what we know as inflation. The ruling class understand that money supply increases devaluate their currency. If they increase the money supply too much and too fast, they risk galloping inflation, which basically collapses the perceived “value” of their currency. When currencies collapse, people become desperate, and government loses its power to intimidate. Civil unrest follows, and desperate people tend to revolt against the ruling class, or even elect dictators promising change (as history shows). Taxation decelerates the economy, slowing down money velocity, and therefore controlling the rate of inflation. The price of tax-induced deflation is lower demand that what an economy can supply, which translates to reduced demand in the labour market (unemployment). Therefore, taxes impoverish the lower classes for the sake of keeping inflation relatively low. And all taxes, even taxes of “the rich, get transferred to the end consumer. The ultra rich get tax exemptions schemes (because they can lobby government for them), and the taxes only burden their SME competitors, and the little people. If SMEs survive the tax burden, they still can’t compete with the big sharks who practically pay no taxes, and if they do, they get them back (and more) in government funding for whatever nonsensical justification. Businesses and individuals burdened by taxes simply adapt their prices to new taxes, after they downsize (fire people) as a response. So, taxes make everything more expensive, on top of driving wages down. Taxes directly cause poverty and lower wages: taxes slow down the economy (rate of transactions) → businesses downsize → unemployment goes us → more people compete for fewer job openings → the people willing to work for less get to determine the lowest wages → everybody gets poorer (except the people on the top who benefit from taxation).

Keeping the above in mind, then the popular affirmation “taxation is theft” is not technically true. The ruling class cannot steal from you what is already theirs. Once you accept the use of their money for your life’s transactions, you play their game by their rules. You relinquish your freedom and the value of everything you produce to a group of people who have managed, through the bluff of perceived “authority”, to sell us the swindle of “money”, which is nothing by fake Monopoly dollars imposed on us through the threat of violence.

The question remains: Would this fake counterfeit money model be able to survive if a critical mass of people were willing to defy it, and use alternative transactions in a parallel economy? How long would it take for a fake currency to buckle under the pressure of organic value-based, competing and decentralized modes of transaction?