JP Hochbaum
DP Veteran
- Joined
- Feb 7, 2012
- Messages
- 4,456
- Reaction score
- 2,549
- Gender
- Male
- Political Leaning
- Independent
"sometimes a document emerges that categorically exposes all these myths that economists perpetuate. Unfortunately, these documents get very little attention when they were originally published and then lie buried somewhere as the mainstream economists continue with business as usual.
In the last year of World War II, the then Chairman of the Federal Reserve Bank of New York, one Beardsley Ruml addressed the American Bar Association.
You can access Guide to the Beardsley Ruml Papers 1917-1960 at the University of Chicago Library.
Historical records suggest the speech was a non-event and “attracted then less attention than it deserved”. In January 1946, the speech was published in the periodical American Affairs and you can see the full text HERE.
The title of the speech (and article) was Taxes for revenue are obsolete and I bolded this to make sure it resonated in your consciousness for a little time. Read it again – taxes for revenue are obsolete."
"Final freedom from the domestic money market exists for every sovereign national state where there exists an institution which functions in the manner of a modern central bank, and whose currency is not convertible into gold or into some other commodity.
The United States is a national state which has a central banking system, the Federal Reserve System, and whose currency, for domestic purposes, is not convertible into any commodity. It follows that our Federal Government has final freedom from the money market in meeting its financial requirements. Accordingly, the inevitable social and economic consequences of any and all taxes have now become the prime consideration in the imposition of taxes. In general, it may be said that since all taxes have consequences of a social and economic character, the government should look to these consequences in formulating its tax policy. All federal taxes must meet the test of public policy and practical effect. The public purpose which is served should never be obscured in a tax program under the mask of raising revenue."
Ruml offers four insights into the purpose of taxation:
Federal taxes can be made to serve four principal purposes of a social and economic character. These purposes are:
1. As an instrument of fiscal policy to help stabilize the purchasing power of the dollar;
2. To express public policy in the distribution of wealth and of income, as in the case of the progressive income and estate taxes;
3. To express public policy in subsidizing or in penalizing various industries and economic groups;
4. To isolate and assess directly the costs of certain national benefits, such as highways and social security.
Taxpayers do not fund anything | Bill Mitchell – billy blog
In the last year of World War II, the then Chairman of the Federal Reserve Bank of New York, one Beardsley Ruml addressed the American Bar Association.
You can access Guide to the Beardsley Ruml Papers 1917-1960 at the University of Chicago Library.
Historical records suggest the speech was a non-event and “attracted then less attention than it deserved”. In January 1946, the speech was published in the periodical American Affairs and you can see the full text HERE.
The title of the speech (and article) was Taxes for revenue are obsolete and I bolded this to make sure it resonated in your consciousness for a little time. Read it again – taxes for revenue are obsolete."
"Final freedom from the domestic money market exists for every sovereign national state where there exists an institution which functions in the manner of a modern central bank, and whose currency is not convertible into gold or into some other commodity.
The United States is a national state which has a central banking system, the Federal Reserve System, and whose currency, for domestic purposes, is not convertible into any commodity. It follows that our Federal Government has final freedom from the money market in meeting its financial requirements. Accordingly, the inevitable social and economic consequences of any and all taxes have now become the prime consideration in the imposition of taxes. In general, it may be said that since all taxes have consequences of a social and economic character, the government should look to these consequences in formulating its tax policy. All federal taxes must meet the test of public policy and practical effect. The public purpose which is served should never be obscured in a tax program under the mask of raising revenue."
Ruml offers four insights into the purpose of taxation:
Federal taxes can be made to serve four principal purposes of a social and economic character. These purposes are:
1. As an instrument of fiscal policy to help stabilize the purchasing power of the dollar;
2. To express public policy in the distribution of wealth and of income, as in the case of the progressive income and estate taxes;
3. To express public policy in subsidizing or in penalizing various industries and economic groups;
4. To isolate and assess directly the costs of certain national benefits, such as highways and social security.
Taxpayers do not fund anything | Bill Mitchell – billy blog