How Paying Off Our National Debt Would Help You
Currently we add a half trillion dollars to the debt each year. The secret to balancing the budget is eliminating income taxes and replacing them with a Payments Tax,
Our debt took on epic proportions in the 1980s and doubled every ten years since then. We have an astonishing $20 trillion in debt, amounting to $67,000 per citizen.
Our Government Borrows the Difference Between What it Collects in Taxes and What it Spends by Issuing Treasury Bonds.
When we issue Treasury bonds, we devalue the dollar just as if we were flooding the money supply with newly printed currency.
The trillions of dollars we've issued in Treasury bonds is the primary cause of inflation. In the 1970s the cost of a four-year education at a prestigious college exceeded $10,000, and people were appalled. Paying $200,000 for college, the price of tuition at many colleges today, would have seemed as preposterous back then as the prospect of paying $4 million for college seems today—but both are just 20-fold increases.
A Payments Tax Would Stop Our Debt's Growth in its Tracks
To pay off our debt we could simply replace our nation’s Treasury bonds (bad money) with newly printed currency (good money) with a process called Coupon Stripping, which would not be inflationary because the damage to our money supply was done when we issued Treasury bonds.