From the President's Public Blog If You're Alive, Your Federal Taxes are Already Paid By John Gelles - Jun 28, 2010 4:52:46 AM ET If You're Alive, Your Federal Taxes are Already Paid: they are paid every time you buy anything. It's a proven fact your federal taxes serve ONLY to prevent hyperinflation: none are used to pay the bills to run the government or pay for anything it does. The Federal Government is not like any person, firm or even any state government. Only it--the Federal Government, our Uncle Sam--creates our legal tender, our fundamental supply of money. That money must be protected from hyperinflation (runaway price inflation) or the national economy will not be able to defend the nation or do much of anything else. Under our private property laws, every time you buy anything that yields a profit to producers you have paid your taxes to the Federal Government--BECAUSE all profits serve to collect taxes for your Uncle Sam. The higher the profit the greater the tax you've already paid. This is fundamental. Yet we never really discuss it. Uncle Sam, if he collects more taxes from you than profits have already collected is actually reducing demand in the economy and shooting himself (and all of us) in the foot--really in the back! If there were no additional taxes, collected from all but the most profitable producers, the whole economy would be better off. But this fact is ignored by members of Congress. Most do not understand it. WHAT MUST WE DO? We must shout to everyone, especially to our Congress, "profits pay our taxes, as well as for the other costs of production." When we are heard, Congress will stop taxing consumers. What of the most highly propertied and profitable producers--who have collected all those taxes. Should they be forced to pay those taxes to the Federal Government? NO. Collecting the taxes prevented hyperinflation. Nothing more is owed by these collector-producers. What if runaway inflation appears to be getting started? Then government must prevent it with subsidized production, attracted or forced savings, price controls and rationing, and currency re-valuation--as a last resort. If we do not recognize all this, prosperity and economic growth will be impeded until we do.