Mike Dilger on Nostr: I had a thought the other day... Governments get involved in all the financial ...

I had a thought the other day...

Governments get involved in all the financial transactions in order to tax them. Your company makes money, it gets taxed. You get paid a salary from the remainder, it gets taxed again. You spend it on something, it gets taxed again. That company takes it in and it gets taxed again. Over and over, tax after tax after tax. And all of this requires complete loss of privacy, they have to know all of your transactions so they can tax them accordingly, and the accounting and compliance costs spawn a huge financial industry which is actually.... entirely unnecessary.

Instead, all this loss of privacy, all this compliance cost, all the tedious filling out of tax forms where you aren't sure if you are doing it right and they hope you do it wrong so they can also collect fines and interest... the whole thing could go away.

And I'm not talking about anarchy. I'm talking about a funded government that doesn't need to collect taxes.

Just use inflation: The central bank prints 3% more money each year and gives it to the government.

Now before you all yell at me about how inflation is a horrible thing... this is a compromise. It is far better than the invasive tax systems we have today, and if the amount of money government gets is fixed by a constitution, and the fiat system (there would still be one) didn't expand via fractional reserve lending but only by this predictable monetary inflation, it strongly prevents government overgrowth, and also moderates boom-bust interest rate cycles, and still stimulates economic activity because the currency continues to lose value.

This is just the start of a crazy thought. I haven't thought it through deeply. But I do really like getting rid of the invasive tax compliance back-monkey.