The free market is counter intuitive for many people, especially politicians, many of whom have never owned a business. Passing laws for society and exempting themselves is standard fare in Washington. When Social Security was made law, Congress exempted itself and other government employees by developing their own private retirement programs. This changed in 1983 for newgovernment employees.

Congress has been considering an energy bill that will include tax increases on energy consumption. It’s being sold as a tax on the oil and gas industries. Nonsense. It’s a tax on every user of energy. Corporations have never and will never pay taxes. A tax is an expense to a manufacturer similar to the raw products he must purchase to make what he eventually sells. All expenses — taxes included — are passed on to consumers.

In their purest form, taxes were imposed to pay for a service common to everyone (“common defense”) or to those who actually use a service (gasoline taxes for roads). The gasoline tax is a great example of a non-punitive service tax. The only people who pay it are those who use the roads. If you don’t drive, you don’t pay the tax. If you take a taxi, you pay it indirectly in the price you pay for the taxi ride because the price you pay includes the costs it takes to run a taxi. One of those costs is gasoline. The same is true when you and I buy something off the internet and it’s delivered to our home or office. The fuel costs that were necessary to bring the item to market and shipped are figured in the price.

So the next time you want the government to do something, keep in mind that it does not have any money. It can only get the by taking it from you and me or printing it. The first method is theft, something that would put us in jail if we did it. The second method is also theft. Printing money lowers the value of the currency that’s already in circulation. By inflating the currency, the dollars in our wallets and investments lose value.

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