Printing Money Instead of Taxing Money

The U.S. Treasury borrowed 24.3 billion dollars after Thanksgiving 2012. The U.S. government will have to pay interest on this debt. In 2012 there were approximately 114,900,000 households in the United States. The amount the Treasury borrowed the day after Thanksgiving is about $209.00 per household.

Instead of borrowing money, a better way would be for the U.S. government to just print the money it needs for operations. That way there would be no interest expense, and no debt for future generations. No more money would be allowed to be printed than the amount of government spending as a historical spending percent of the GDP.  Any increase in the supply of money over the historical spending percent of GDP would require a 2/3 vote of congress.

To offset inflation caused by printing more dollars there would be no income taxes on work and production. This would create an incentive for people to work and produce because they could keep their production, thus improving their lives over the basic essentials; food, shelter, and health care, provided by the government. Efficiency in production is what has held inflation in check for the past few decades. Look at how the cost of computer capacity has come down because of the increase in efficiency. Because of efficiency in production a modern airliner can carry more passengers using less fuel per passenger mile than airliners of the past.

If there were no corporate taxes or dividend taxes then companies from all over the world would want to locate here. They would need dollars for that, which would help keep the value of the dollar from deflating, thus hindering inflation. Companies locating here would also keep unemployment low as people who worked could keep what they earned, thus fewer people needing government assistance.

Work will be needed to provide the basic consumer goods. Reward work and many positive things happen in a society.

Printing money would be a better way than taxing production, which eventually will lead to less production and a stagnate and deteriorating society. Reward production instead of punishing production and you will have a more prosperous and advancing society. History shows societies that rewarded private production advanced more than communal societies.

Charles Tolleson