[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

How Will Anyone Trust The Georgia Runoff Results When There’s Enough Illegal Voting To Tip The Scales?

2. Deadly New Pathogens will Again Appear – And Flesh and Brain Eaters in Coastal Water.

3 Used Vehicles to Buy During the Market Crash

20 FOODS to STOCKPILE that NEVER expire


In 2023, Much of the Earth will flood--while most of Earth is scorched

Sens. BlunT / Mi - Burr / NC - CapiTo / WV - Collins / Me - Lummis / Wy - PorTman / Oh - Romney / UT - Sullivan / Ak - Tillis / NC - ErnsT / Iw - Murkowski / Ak - Young / In ... all voTed lasT week ---To advance The RFMA

America’s First Thanksgiving Proclamation

Reports: Ukraine DELIBERATELY Fired the Missiles Into Poland

2023 in Bible Prophecy

Deeply Disturbing: J6 Prisoner Denied Cancer Treatments

Illegal Immigrants Who Entered US Since Biden Took Office to Cost Taxpayers $20+ Billion a Year: Analysis

EXCLUSIVE: Freedom Caucus Members Protected FTX, Helped McCarthy Sabotage Red Wave

Pilot 'Suddenly and Unexpectedly' Drops Dead During Flight to Ohio

Holiday Hardship: 1 In 4 Americans Skipping Thanksgiving Entirely To Save Money

Black Friday Chaos: Amazon Warehouse Workers Set To Strike Across 40 Countries

Exclusive: Mike Lindell to Challenge (RINO) Ronna Romney for RNC Chair

Here are the Five Votes Matt Gaetz Claims Will Stop Kevin McCarthy from Becoming House Speaker

Sarah Palin losesÂ… thanks to Lisa MurkowskiÂ’s Ranked-Choice VotingÂ…

Murkowski Wins Alaska Senate Race with Support from Democrats & (Ranked Choice Voting)

GA Runoff: The Clear Case for Herschel Walker

Andrew Huberman: "How To Get Rid of Fatigue Using Science!" – You won't believe until you try!

8 Mind-Blowing Websites You Probably Didn't Know Existed

Russian lawmakers ... unanimously approved a bill --- ThaT will ban all forms of LGBTQ “propaganda,”

Are you connecting the pandemic dots yet?

Demand ... for UnvaccinaTed Blood --- Soaring

Disturbed - Bad Man [Official Music Video]



Toyota's Secret Weapons That Will Destroy the Rest of the Car Industry

Exasperated Multnomah DA says charges dropped against nearly 300 people with no public defenders

Polish Politician Blasts Ukraine For Missile Provocation

5.5 Million Illegal Immigrants Have Been Encountered Since Biden Took Office

No Legitimate Country Has Open Borders Except the US

John Mellencamp Sits for National Anthem before Colts-Eagles Game

Emmanuel Macron Comes Clean: We Need A Single Global Order

Democrats Flip Gubernatorial Seats

Report: 48% of Maricopa Election Centers’ Machines Malfunctioned

‘We Lost Our Purpose’: Border Patrol Sees Surge In Suicides As Morale Plummets

SIGNS This is a must see documentry

FTX, Tether, the CIA, Drug Cartels and Ukraine

Ukraine Telegram Channel ... wiTh inside source in The OP --- Zelensky being forced To negoTiaTe

Pennsylvania AG Announces Arrest in ‘Widespread’ Ballot Fraud Operation Days After Midterm Elections

Meta Employees, Security Guards Fired for Hijacking User Accounts

Tucker Carlson: Zelenskyy 'Kept Lying On Television' About Missile Being Launched By Russia

Elon Musk Purges Thousands More Twitter Employees – No One Notices The Difference

Housing Affordability Worsens As Homeownership Out Of Reach For Anyone Making Under $100k

Go Woke, Go Broke: Layoffs Coming to Disney as Woke Companies Earnings Collapse

Yuma Families Forced to Hire Armed Private Security as New Surge of Illegals Head to Border

12 Years Ago Today, An Illegal Alien 'Permanently Separated' This Young Man From His Family

Status: Not Logged In; Sign In

See other Economy Articles

Title: The US is about to go Full Louis XVI
Source: [None]
URL Source: https://www.zerohedge.com/news/2022-08-08/us-about-go-full-louis-xvi
Published: Aug 8, 2022
Author: Simon Black via Sovereign Man
Post Date: 2022-10-04 00:46:58 by 3-Dee
Keywords: None
Views: 87
Comments: 1


MONDAY, AUG 08, 2022 - 10:48

by Simon Black via Sovereign Man

On September 3, 1783, after nearly a year of excruciating back-and-forth negotiations, all sides had finally gathered together in Paris to sign a historic peace agreement.

It was a pretty important peace deal. Because the Treaty of Paris, as it is now known, is what formally ended the American Revolution, and when Great Britain legally recognized the United States as an independent nation.

The treaty was signed in Paris because France had been a major supporter of the US war effort. And just as soon as the ink was dry, French King Louis XVI ordered his finance minister to prepare an accounting of exactly how much money France had spent on US independence.

The result was nothing short of astonishing—more than 1 billion livres.

To put that number in context, the French Treasury’s entire annual revenue only amounted to around 200 million livres.

So they had basically sunk FIVE YEARS worth of their tax revenue fighting someone else’s war.

Granted, Britain was still one of France’s main rivals. And the French did not care for British King George III.

But the American War was simply too costly, and France had already been on very shaky financial footing well before this point.

Louis XIV had nearly bankrupted the country a century before. His successor, Louis XV, had to drastically slash expenses and could barely hang on financially.

Then, in 1774, just prior to the American Revolution, Louis XVI became king at a time that France was rapidly deteriorating.

You’d think that with so much economic turmoil at home that he would have focused on his own national interests… and, in lieu of money, weapons, and ships, he would have instead sent the royal thoughts and prayers to America.

But no. Lucky for the United States, Louis XVI courageously fought the American Revolution down to the very last French taxpayer.

Only after the war did Louis finally take stock of the situation and realize the truth: America was in a much better position. Britain was bruised but still powerful. Yet his own France was nearly bankrupt and desperately in need of cash. Not exactly a win/win.

Louis XVI was King, but his powers were limited; he was beholden to the legislature, called the Estates-General, and he couldn’t simply decree new taxes without their consent.

The King did, however, control the tax collectors. And Louis made sure they had every authority to coerce, harass, and intimidate money out of French citizens.

French tax collectors had the authority to walk right into people’s homes unannounced, conduct surprise inspections to look for hidden wealth, and walk away with whatever money or property they felt would satisfy the peasant’s tax bill.

This is actually a pretty common theme throughout history: governments that are on the ropes routinely resort to plundering the savings of their citizens.

Several ancient Roman emperors, in fact, from Diocletian to Valentinian III, famously sent ruthless tax collectors to harass their citizens and steal their wealth. Several ancient Chinese dynasties did the same thing. So did the declining Ottoman Empire.

Significantly ramping up tax collection efforts is typically a hallmark of an economy and empire in decline.

So we can’t be too surprised that, in its latest legislative bonanza, the US government is setting aside $80 billion for IRS tax collection efforts.

They’re calling the bill, of course, the Inflation Reduction Act. This is pure comedy—the legislation will do no such thing. Why would inflation, which in part was caused by excessive government spending, magically dissipate because of more government spending? It’s ludicrous.

But inflation aside, front and center in the legislation is $80 billion in funding for the IRS, primarily to step up it tax collection and enforcement efforts.

To put that number in context, the annual budget for the IRS is about $12 billion. So, even though the $80 billion will be leaked out over a period of several years, it constitutes a major increase in the IRS budget.

The entire idea is based on a bizarre notion known as the ‘tax gap’. This is the difference between the amount of tax the government collects, versus the amount the government thinks they should collect.

In other words, the tax gap represents how much they believe people are cheating. And the estimates vary wildly, from $100 billion per year to a whopping $1 trillion per year.

Frankly these numbers have always seemed to me like they were completely made up. No one has explained how they actually come up with such estimates. They just barf up some number and pretend that it’s true.

Obviously there are a whole lot of hardcore tax cheats out there, stealing and defrauding the system. But that’s not why the IRS is receiving an $80 billion boost.

This money will go to hire a small army of tax inspectors who will fan out across the nation on a giant fishing expedition that will ensnare countless middle class Americans and small businesses.

Certainly they’ll catch a few cheats along the way. And they may even find a few bucks to close that mythical ‘tax gap’.

But at what cost?

One of the biggest problems with the US economy right now is that it’s so much more difficult to produce goods and services.

Over the past few years, the people in charge have put up endless road blocks and obstacles for small business.

They vanquished the labor market and made it all but impossible to find workers. They destroyed the supply chain. They engineered historically high inflation. They came up with a myriad of costly new environmental and public health rules.

On top of that they constantly create new rules and regulations, many of which step far beyond the government’s authority.

(Last year, for example, the CDC Director decided in her sole discretion that she controlled the entire $10+ trillion US housing market.)

23% of full-time workers today require a government license to do what they do, according to the US Department of Labor. Even being a hairdresser is full of red tape and costly bureaucracy.

This new threat of widespread tax audits is going to be yet another obstruction to Americans’ productivity…. at a time when the economy desperately needs maximum focus.

Inflation is raging because there is a serious, global imbalance between the supply and demand of goods and services.

Specifically, demand is too strong because they doled out trillions of dollars in free money. And supply is weak because nearly every single government policy makes it harder for people to produce (which is yet another hallmark of empires in decline).

Now, on top of everything else, is a very high likelihood of being harassed by the tax authorities.

Audits are incredibly unpleasant, costly, and time-consuming. Even if all of your accounts are in order and you’ve done nothing wrong, a tax audit monopolizes a tremendous amount of time and money.

It’s debilitating. Say goodbye to actually running your business, growing sales, or spending time with your family on nights and weekends… and say hello to preparing for your tax audit.

Your time will now be spent digging up receipts, finding old contracts, and trying to recall specific details of trivial decisions you made years ago.

Plus you’ll most likely have to pay outside experts to assist with the process, like CPAs and attorneys. And naturally the government does not reimburse you for such expenses. But at least you’ll get to deduct them… from your taxes.

In the end, after endless financial scrutiny, the government may conclude that you owe them a few bucks because of some undocumented deduction from several years ago. So you write them a check for some trivial sum… after having spent countless hours and effort taken away from your productivity.

The cost/benefit just doesn’t compute. And that’s why healthy, prosperous nations don’t engage in such absurd activities. They don’t need to.

Taxes ultimately represent the government’s ‘slice’ of an economic pie. So when a country is prosperous and an economy is strong, the government’s slice continues to grow because the overall economic pie is constantly getting bigger.

But nations in decline don’t see it this way. For them, the pie is shrinking. So they think the only way to increase their slice is to go after other people’s crumbs.

History shows this is absolutely the wrong move. Raising tax rates, inventing new taxes, and recruiting armies of tax collectors only makes the pie shrink even more.

Their efforts, instead, should be focused on making the pie bigger. But they don’t think that way.

Bear in mind this is all brought to you by the same people who are shoveling your tax dollars out the door to Ukraine $50 billion at a time. It’s very ‘Louis XVI’ of them.

All of these trends—the cannibalistic surge in tax authorities, the anti-productive regulations, the economic scarcity mentality—are all hallmarks of an empire in decline.

The situation is NOT terminal. It is NOT irreversible. But it is reason enough to have a Plan B.

Want more articles like this? Sign up here to receive Sovereign Man letters to your email.

Post Comment   Private Reply   Ignore Thread  

TopPage UpFull ThreadPage DownBottom/Latest

#1. To: 3-Dee (#0)

Thank you for the interesting and informative article...I think the DeeCeeRATZ stepped in it when they chose to almost double the IRS junta. Rep. McCarthy has said the first thing the GOP-contolled House will do next January is to DeFund these IRS scumbags.

We need to abolish the IRS, along with the FBI and DeeCeeSwampRATZ Department of Education...all three are hopelessly corrupt and worthy of universal disgust.


"NOW...Devolve Power Outta the Federal Leviathan!!"

Mudboy Slim  posted on  2022-10-05   8:42:37 ET  Reply   Trace   Private Reply  

TopPage UpFull ThreadPage DownBottom/Latest

[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

Please report web page problems, questions and comments to webmaster@libertysflame.com