A tweet on “X” that displays the ignorance of the American public

This is Trump’s latest promise, which like all his promises (“Mexico will pay,” “I’ll replace Obamacare with a better plan”) were full-on lies, but makes a statement that those ignorant of federal finance will believe: Replacing income taxes with tariffs.

In one short phrase, it makes three false assumptions. They are:

1. The federal government needs and uses income tax revenue (false)
2. Tariffs cost you nothing. They are paid by the exporting nation (false)
3. Trump will do as he says (false).

1 INCOME TAX: The federal government is Monetarily Sovereign. It invented the dollar, and by passing laws, it creates all the dollars it wants. So long as the government doesn’t run short of laws, it won’t unwillingly run short of dollars.

Alan Greenspan: “A government cannot become insolvent with respect to obligations in its own currency. There is nothing to prevent the federal government from creating as much money as it wants and paying it to somebody. The United States can pay any debt it has because we can always print the money to do that.”

Ben Bernanke: “The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. It’s not tax money… We simply use the computer to mark up the size of the account.

Jerome Powell “As a central bank, we have the ability to create money digitally.”

St. Louis Fed: “As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e., unable to pay its bills. In this sense, the government is not dependent on credit markets to remain operational.” 

Of course, if the government passes silly laws, like the “debt limit” (which does not limit debt; it limits paying for existing debt), it can run short, but there is no way to overcome a foolish Congress and President.

The sole purpose of federal taxes is different from the purpose of monetarily non-sovereign state/local taxes.

Rather than funding spending, federal taxes:

A. Assure demand for the U.S. dollars by requiring taxes be paid in dollars.

B. Control the economy by taxing what the government wishes to discourage and giving tax breaks to those it wishes to reward.

C. At the behest of the rich, make the rich richer by widening the Gap between the rich and the rest. Contrary to popular wisdom, the rich pay a lower percentage of their income in taxes than you do.

By contrast, state/local taxes do fund state/local spending.

2 TARIFFS: Tariffs on, for instance, Chinese imports are not paid by Chinese sellers. They are paid by American buyers and passed on to you. Unfortunately, America’s rich hardly pay anything, which is why the Republicans support it.

The vast majority of tariffs are paid by you middle- and lower-income Americans. 

Substituting tariffs for income taxes would merely shift dollars from middle America to the rich.

3 TRUMP WILL DO AS HE PROMISES: You must be joking. He:

1 Attempted a coup
2 Waited 3 hours to end coup
3 Was fined $25 Million for cheating Trump U. students
4 Was fined $2 Million for fake Trump Foundation,
5 Was fined $5 Million for sexual abuse
6 Fined $83 Mil. for defamation
7 Cheated on 3 wives
8 Fined $150 thousand for Stormy Daniels
9 Stole classified material /refused to return it
10 Lied that COVID was just a common cold
11 Pushed fake COVID cures
12 Lied about vaccination
13 Draft dodger / fake heel spurs
14 Fake hurricane report with Sharpie
15 Was a multiple nepotist
16 Cheated casino employees out of wages
17 Lied about real estate worth
18 Cheated lenders with 6 bankruptcies
19 Admires dictators: Putin, Kim, Orban
20 Received $7.8 Million from foreign nations
21 Separated immigrant children from parents
22 Made anti-abortion multiple flip-flops
23 Is a multiple conspiracy monger
24 Is a hatemonger: blacks, browns, gays, Muslims, immigrants
25 Insults judges and prosecutors
26 Calls dead soldiers “suckers”
27 His kids received $2 Billion from Saudis
28 Faked results of his physical exam
29 Denies election results
30 Lost 60+ court rulings re. election results
31 Impeached twice.
32 Has eight close associates sentenced to prison.
33 Approves of a President murdering rivals
34 Spent more golf time than any President in history
35 Claimed global warming is a Chinese hoax
36 Pardoned 144 criminals on last day in office
37 Called convicted coup rioters, “patriots”
38 Called Nazi marchers “good people”
39 Told 30,000 lies in 4 years of Presidency
40 Denies knowledge of Project 2025
41 Over 26 Trump-related business failures
42 Failed/neglected to comply with/Fair Housing Act
43 Threatened to withdraw from NATO
44 Will eliminate funds for electric car incentives
45 Said he would be a dictator “for one day.”
46 Tried 60 times to eliminate Obamacare
47 Tried to ban Muslims from entering the US
48 Tried to end birthright for children born in the US
49 Will penalize schools that even discuss “woke.”
50 Encouraged illegal electoral college votes
51 Says, “If I lose, blame the Jews.”
52 Supports Mark Robinson, Holocaust denier
53 Dined with anti-Semite Nick Fuentes
54 Backs Marjorie ‘Jewish space lasers’ Greene
55 Pals with anti-Semite Kanye West
56 Lied that Pres. Obama was born in Kenya
57 Lied that Dems favor “post-birth abortions”
58 Lied that wind turbines cause cancer
59 Wants to deport millions like Hitler did
60 Told Proud Boys to “stand back and stand by”
61 Pretends to give to charity
62 Pretends to be religious
63 Had GOP vote against disaster funds for FEMA
64 Is a coward afraid to debate Kamala Harris.
65 Politically plans to take fire-fighting $ from CA.
66 Plans to use the US military against Americans
67 Promised that Mexico would pay for the wall
68 Asked Putin to investigate Hillary Clinton

For those of you too young to understand what caused WWII, know this: Trump is following the Hitler playbook. The German people thought it couldn’t happen there.

It happened because they let it happen.

Rodger Malcolm Mitchell

Monetary Sovereignty

Twitter: @rodgermitchell

Search #monetarysovereignty

Facebook: Rodger Malcolm Mitchell;

MUCK RACK: https://muckrack.com/rodger-malcolm-mitchell;

https://www.academia.edu/

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The Sole Purpose of Government Is to Improve and Protect the Lives of the People.

MONETARY SOVEREIGNTY

Source: https://mythfighter.com/2024/10/25/a-tweet-on-x-that-displays-the-ignorance-of-the-american-public/