WHY IS INFLATION A TAX? — PART 2

In the first post of this series, Part 1, we considered the definition of inflation. Here we examine what our leaders are doing. Of course, the answer is not terribly complicated. They are recklessly spending lots and lots of our money. Thus, we have a question.

How Much Money Do Our Leaders Want To Spend?

Power-mad politicians (both in the Senate and the House) just passed the so-called “Inflation Reduction Act.” See the references at the end of this post.

The so-called “Inflation Reduction Act”is the compromise that resulted when a few Democrats balked at recklessly spending trillions instead of hundreds of billions. So, when the politicians we have foolishy elected have tried pass even more tyrannical laws and to spend even more of our money, I suppose we should thank the Lord for moderating their insanity.

Will the so-called “Inflation Reduction Act” reduce inflation? Probably not. The so-called “Inflation Reduction Act” will do something foolish, raise taxes during a recession. Supposedly, the so-called “Inflation Reduction Act” raises taxes more than it raises spending, and that makes it a tool for inflation reduction. The problem is describe by the Laffer Curve (laffercenter.org). There is a point where the diminishing margin of returns from raising taxes becomes so substantial that revenues begin to actually decrease. In all likelihood, we are at that point.

Moreover, even the Congressional Budget office does not have anything positive to say about the so-called “Inflation Reduction Act.” See Estimated Budgetary Effects of H.R. 5376, the Inflation Reduction Act of 2022 (cbo.gov) and CBO Confirms to Graham: Dems’ “Inflation Reduction Act” Won’t Reduce Inflation (budget.senate.gov).

So, why do Democrats want something as destructive as the so-called “Inflation Reduction Act”? Politicians acquire power and wealth by spending other people’s money. Politicians gain influence by diverting other people’s money into the pockets of their cronies. Spending, even if it results in inflation and lowers the value of the dollars held by the public, rewards the cronies of big spending politicians.

Of course, big spending does create problems for big spenders. Those other people do not like power hungry politicians taking and spending their money. Therefore, those power hungry politicians have included funding for 87,000 additional IRS agents — armed IRS agents — in the so-called “Inflation Reduction Act.”

Think about it. Why do we need 87,000 more IRS agents. Who will power hungry politicians use those new armed IRS agents to harass, bankrupt, and otherwise punish? Rich people who refuse to lawfully pay their taxes? No. Instead, the people who object to unconstitutional government ought to start getting ready for IRS audits.

Consider the Chinese Social Credit Scoring System and some of the articles that have been written about it. See the references below.

Our reflexive response is to look upon whatever happens some place else and wonder what it means for me. So, each of these articles on the Chinese Social Credit Scoring System has been written to deal with an American concern. Most Americans wonder what the Chinese Social Credit Scoring System is and how such a system could be implemented in the United States.

How would the IRS figure into an American social credit score system? Liberal Democrat organizations like the Southern Law Poverty Center (splcenter.org) already identify Conservative organizations (which they call hate groups), and the IRS has been used to target the tax exempt status of such groups. Unless such efforts are rigorously opposed and fought, it is just a matter of time before Liberal Democrats find ways of systematically identifying Conservative individuals and using the IRS to harass them with expensive financial audits.

How do we know Liberal Democrats are pursuing personal power and wealth instead of what is best for the welfare of our nation? Consider:

• The Democratic Party’s relentless persecution of President Donald Trump, including the FBI Raid on the Trump estate in Florida.
• The way Democrats have persecuted Supreme Court nominees and, in the aftermath of their reversal of Roe vs Wade, sitting members of the Supreme Court.
• The magnitude of the George Floyd riots and the Democratic Party’s utter indifference to the death and destruction caused by those riots.
• The determination of the Democratic Party to politicize the investigation of the relatively small riot at the Capitol on January 6, 2021.
• The incredible growth of the Federal Government, unchecked by constitutional restraints.
• The deprivation of constitutional rights during the COVID-19 pandemic.
• The polarization of the mass media. How do we know who is telling us the truth, the whole truth, and nothing but the truth?
• And so forth.

Do we know what is going on? Whose responsibility is that? If we are not skeptical enough of the mass media to check as many sources as we can, then who should we blame if we are almost totally misinformed?

References

Congressional Passage of the so-called “Inflation Reduction Act”.

• Senate Democrats pass budget package, a victory for Biden (apnews.com)
• Schumer-Manchin social spending and tax increase bill clears the Senate after last-second amendment drama (foxnews.com)
• Democrats hopeful climate and health care bill will mobilize voters in vulnerable election year (washingtontimes.com)
• Inflation Reduction Act of 2022 (investopedia.com)
• The Inflation Reduction Act would double IRS agents and audits — but the superrich aren’t the real targets (nypost.com)
• The Inflation Reduction Act Unleashes A Tougher IRS (forbes.com)
• House passes Inflation Reduction Act, sending climate and health bill to Biden (washingtonpost.com)
• House Democrats pass Inflation Reduction Act after GOP calls bill a ‘hoax’ (/nypost.com)

Chinese Social Credit System

• China Social Credit System Explained – What is it & How Does it Work? (nhglobalpartners.com)
• What is the social credit system? (carm.org/social-justice)
• How the West Got China’s Social Credit System Wrong (wired.com)
• ESG scores similar to China’s social credit system, designed to transform society, think tank director says(foxbusiness.com)