Overspending Is A Forced Tax, Which Should Be Outlawed

From many perspectives, the 2008 economic crisis can be regarded as the 2nd great depression. If the government did not bailout financial companies and auto companies etc., the 2nd great depression could be worse than the 1st great depression in 1930s. This is because during the 1st great depression, many century old companies (e.g. citibank, GM, etc.) had survived without government bailout. However, this time these companies could not survive if the government did not bailout them.

Therefore, based on equal stands (no government bailout for both great depressions), the 2nd great depression is worse than the 1st great depression.

Overspending and National Debt

As explained in the Facts, the root cause of the 2nd great depression was the government overspending, which generated a huge national debt. The 2nd great depression is an economic process to adjust to the huge national debt. Cash flow is very crucial to a company. So does a nation. A nation in debt is a nation short of cash. As long as the huge national debt exists, the nation will not have cash. Then the economy cannot become strong.

Currently, the tax spending is a black box to taxpayers. There is no transparency on how the government spends the tax money and generates the 10 trillion national debt. Therefore, taxpayers can only guess what have caused the huge national debt.

Someone said the national debt was due to the Iraq war. This, however, is untrue. So far the Iraq war cost is about $600 billions. But the national debt is $10 trillions. So the war cost is only a very small portion (about 6%) of the total national debt.

Therefore, 94% of the 10 trillion national debt did not come from the Iraq war. There are other overspendings that contributed to the rest 94% of the 10 trillion national debt. One possible spending contributing to the huge national debt is the national spying program.

From 2000 to 2008, the government has violated human rights in many areas. Under the excuse of anti-terrorist, the government secretly set up a national spying program monitoring over million American people's phone calls and emails without court order and without any evidences. Many people who are political and/or personal opponents of government employees were put under the monitoring list.

In other words, the government uses the taxpayer's money to monitor taxpayers. Taxpayers money are abused for political and personal purpose without approval from taxpayers. For more info on this issue, please visit

Establish Board of Government Owners

Following, we will only look at the financial aspect of this national spying program.

National Spying Program Destroys U.S. Economy

In the past 8 years, the Bush administration secretly established a national spying program, which monitors more than one million Americans. Some sources say it monitor all Americans. For more info on this program, please visit

U.S. Government Monitors All Americans

This National Spying Program monitoring millions of taxpayers without court order is not only immoral, anti-constitutional, anti-human rights, but also wasting huge amount of tax money. It might be one of the causes leading to the huge national debt and current economic crisis.

This is because 24 hours monitoring one person's home phone line requires 3 employees. 24 hours monitoring one person's cell phone line requires 3 employees. 24 hours monitoring one person's internet activities requires 3 employees. 24 hours monitoring one person physically requires 7 employees. So 24 hours monitoring one person's above activities requires 16 employees. 24 hours monitoring 1 million American people requires 16 millions employees. If one employee's salary is $50,000 a year, 16 million employee's salary is $800 billions a year. For 8 years, the 16 million employee's salary expense is $6.4 trillions. This cost does not include the facilities, equipments expenses, etc. used for the spying program.

This probably provides an answer for where the $10 trillion national debt comes from. It means that the massive spying program probably contributed to the huge national debt (the biggest economic bubble in U.S. history), which destroys the U.S. economy, and triggered current economic crisis.

In other words, not to mention the massive violations of the Constitution, human rights, etc., just from the financial viewpoint, the country cannot afford such a massive national spying program either. In some sense, the National Spying Program destroys the U.S. economy and led to the Second Great Depression.

Legality of Overspending

Government overspending will generate national debt. Because government has no money, the national debt has to be paid back by people/taxpayers through invisible, hidden tax -- printing/creating money.

However, above process has no legal basis because:

	The Constitution does not authorize the government to use the "overspending -- national debt -- printing/creating money hidden tax" to tax people/taxpayers.
	There is no law to legalize the "overspending -- national debt -- printing/creating money hidden tax" chain process either.

Therefore, from the legal viewpoint, it is illegal for the government to make overspending, generate national debt, then print/create money, and tax the people/taxpayers secretly. So the overspending and printing/creating money without taxpayer's approval is a forced tax, which should be outlawed.

Forced Tax

The "overspending -- national debt -- printing/creating money hidden tax" forced tax takes many different appearances. Because it takes many different appearances, and it is not called "tax", most people/taxpayers do not realize it is a tax.

The "overspending -- national debt -- printing/creating money hidden tax" forced tax is carried out by the following ways:

	Reducing People/Taxpayer's Buying Power -- After the printing/creating money, the dollar value will drop (dollar depreciation). Then dollar's buying power will drop. Then all goods and product's prices will go up. All people/taxpayer's buying power will go down. So all people/taxpayers pay above forced tax through dollar depreciation induced buying power decrease. This forced tax rate was as high as 50% to some people/taxpayers.
	Stock Value Falling -- As explained in Facts, the 2008 Second Great Depression originated from the "overspending -- national debt -- printing/creating money hidden tax" forced tax. During the 2nd Great Depression, stock values fell dramatically. Those stockholders paid the forced tax through the loss of stock values. This forced tax rate was as high as 40% or even more.
	Saving Loss -- During the 2nd Great Depression, many people have lost their savings due to the depreciation of dollar, losses in pension, retirement plan, etc. This forced tax rate was as high as 50% for many people.
	Job Loss -- During the 2nd Great Depression, many people lost their jobs. For them, the forced tax rate is 100% of their income.
	Business Loss -- During the 2nd Great Depression, many businesses suffer losses due to decrease of sales. The forced tax rate is as high as 50% to some businesses.
	Bankruptcy -- During the 2nd Great Depression, some businesses bankrupted. To them, the forced tax rate is 100%.

Crisis

As pointed out in the Facts, the direct cause of the 2008 2nd Great Depression was the massive invisible, hidden, forced tax (with a tax rate at 50% or higher) imposed on all people (including those low income people who usually do not pay IRS tax) and businesses. Such a forced tax was carried out due to following reasons.

Normally, the annual IRS tax income is the taxpayer authorized government spending limit. However, the government failed to control its budget, and has spent much more than the annual tax income. Because the taxpayers do not allow the government to increase the IRS tax, under the "No new tax" pressure, the government uses the national debt as a shelter to cover the overspending. The 10 trillion national debt has put the nation living on debt, which has generated the biggest economic bubble in U.S. history.

Government overspending has generated the skyrocketing national debt. But the national debt is not a free lunch. Someone has to pay it off. After spending all IRS tax (cash), the government has no money left to pay the national debt. So the burden to pay off the huge national debt will go back to all people/taxpayers.

Then how to make people/taxpayers to pay off the national debt?

Because increasing the IRS tax will meet the public opposition, the government then switched to an invisible, hidden tax -- printing/creating new money out of nothing. As explained in the Facts and No National Debt -- The Invisible, Hidden, Alternative Tax, the massive invisible, hidden tax was carried out through government printing/creating money spree. The printing/creating money spree has successfully taxed all people (including those low income people who do not pay IRS tax) with a tax rate of 50% or even higher.

After above heavy invisible, hidden tax, people/taxpayer's buying power had been greatly slashed and cut down by 50% or more. Then consumers have no money left for mortgages (foreclosure crisis started), for cars (auto industry crisis followed), and for other goods and products (retailer crisis followed), etc.

The huge tax (with a tax rate of 50% or higher) led to the huge economic bubble burst. It was the burst of this huge economic bubble that triggered the 2008 economic crisis.

If the government overspending and printing/creating money spree continues, the dollar will continuously fall down from 50% level to even lower level (some experts predict that the dollar could drop to worth only 10% of current value). When dollar depreciates, even the face income/salary remain the same, all people/taxpayer's buying power will be shrunk and reduced to 10% of current buying power. Then the U.S. economy will fall from "Dollar Economy" down to "Dime Economy" or "Cent Economy".

Then people/taxpayer's buying power will be 10 times less than now or even worse. People/taxpayers cannot afford many things used to be normal spending in their lives. Most people/taxpayers will bankrupt or become poor people.

Therefore, many people are very pessimistic about the U.S. economy. Many investors are trying to sell off all dollar based assets. This is possible for investors. However, for all people/taxpayers living in America, this is impossible. It's impossible to do transactions with foreign currency in the United States. It's impossible to receive foreign currency as salaries either.

Question

The question is: Will the second great depression mark the beginning of the end of U.S. economic empire?

The answer to this question is yes and no:

(1) Yes, if the current problems continue. If the government overspending continues, the national debt will continue to rise. If the national debt continues to rise, the printing/creating money spree will continue. If the printing/creating money spree continues, the dollar will continue falling. Currency is the stock of a country. As the dollar continue to fall, the country's economy will continue to fall. A weaker dollar is equal to a weaker country. Finally, the U.S. empire will become history due to the falling economy and dollar (the stock of the country).

(2) No, if the current problems can be corrected and solved. Following is the only possible solution that may save America.

Solution

The solutions to save U.S. economy are as follows:

Stop Government Overspending. This will stop the increase of national debt immediately. Then printing/creating money can be stopped.

Tax income (the country's cash) is the government spending authorized by taxpayers. Any overspending beyond the tax income is not authorized by taxpayers. Therefore, overspending is a forced tax, which is forced by the government over the taxpayers without the approval by the taxpayers. Any forced tax is illegal, and should be outlawed.

Cash flow is very crucial to a company. Similarly, the cash flow is very important to a country too. A company in debt (run out of cash) will lose and bankrupt. Similarly, a nation in debt (run out of tax income cash) will lose too. In order to have enough cash flow, the government spending should be less than the total tax income (cash).

Government Expense Transparency. The tax income is taxpayer's money. Taxpayers have the right to know how the tax money is spent. So all government expenses should be transparent to taxpayers.

Among all the pessimistic viewpoints on U.S. economy, we should understand that the economy also has its strengths. The most important thing is to correct the errors and mistakes leading to the great depression.

The strength of U.S. economy is that it is still the world's largest economy. The world's largest economy can generate the largest tax income, which is the largest cash available for the government to spend without causing national debt.

The errors, mistakes, and problems are that the government also has the world largest overspending. There are too many wasting spending programs. So after spending the world's largest tax income, the government spends more than that. It is the overspending that cause the national debt, printing/creating money spree, depreciation of dollar, and fall of economy.

The total government spending should be less than the total tax income. In this way, government will have cash left each year, which will be able to pay off the national debt without printing/creating money.

The government should not and cannot spend the money more than tax income. Tax income is the spending limit authorized by taxpayers. If the government spend more than that, the overspending will be collected by the invisible, hidden tax (national debt and printing/creating money). This is not only immoral, illegal, but also has caused the current economic crisis.

In special situation, if the government has to make overspending, the overspending budget should be approved by taxpayers directly rather than by Congress. The past eight year's lessons teach us that the Congress could not protect taxpayers. In the past eight years, all the irresponsible budgets leading to the huge national debt had been passed by the Congress during the past eight years. The Congress failed to protect taxpayers because Congress is also a government agency spending tax money. Congress is not the Board of Government Owners. Therefore, the Congress does not represent taxpayers directly. So the overspending should be approved by the taxpayers directly.

Taxpayer approval on overspending and money printing/creating should be achieved by following methods: (1) Approval through the national referendum. (2) Approval through the Board of Government Owners (Taxpayers). For more info on the Board of Government Owners (Taxpayers), please go to Establish Board of Government Owners.

Please call the White House and Congress today on above issues. The White House contact information is as follows:

White House Directory

Please contact both your district congressional representatives, as well as the Congress Joint Economic Committee (JEC) Senate Members and Congress Joint Economic Committee (JEC) House Members. The Congress directory is:

United States Congress Directory

Related links:

Establish Board of Government Owners

Facts

No National Debt -- The Invisible, Hidden, Alternative Tax,

Printing/Creating Money Should Be Approved By Taxpayers


ACMA Home | About ACMA | About Us | Archives | Contact Us | ACMA Patient Group | Specical Links
ACMA Treatment | ACMA Cancer Treatment