“build it and he will come !”
We will Reinstate the Bank of Canada which will end the private borrowing by government that costs Canadians approximately $60 billion per year in interest payments
Once all the Treasury Bonds are replaced with sovereign notes, banks will be at 100% reserve banking, instead of the fractional reserve system currently in use. From this point on, the Central Banks will only be needed as a central clearing house for cheques and as vaults for sovereign notes. Monetary power can be transferred back to the treasury dept. There will be no further creation or contraction of money by banks. By doing it this way, the central banking system can be abolished without a national bankruptcy, a financial collapse, inflation or deflation or any significant change and the people can go about their business.
this can be done ~ join and learn
Income Tax – Is It Illegal?
The origins of income tax may surprise you. First of all, the Federal Government cannot legally collect taxes in Canada. The only way the Canadian Government was able to enact an income tax was to bring it into effect under the War Measures Act in 1917 as the Income War Tax Act. The Federal Government only needed an income tax in 1917 because in 1913 it gave away its exclusive right to create the nation’s currency and credit to private banks. Why? How?
The Income War Tax was strongly opposed by those who knew that the Federal Government did not have the legal right to collect income taxes. The British North American Act clearly states that direct income taxes can only be collected by the provinces. As a result, four provinces were eventually included in the Income War Tax Act and served, at the time to pacify the critics. First, income tax was to be voluntary, second it was to be temporary, lasting a proposed 24 to 36 months, third it was to apply to only those earning in excess of $10,000 per year (equivalent to $300,000 today), and fourth, it was to be applied at a rate of 10%. Under these terms, income tax was to pay off the debt for World War I and then it was to cease.
This Income War Tax was imposed on Canadians primarily to pay for the cost of borrowing money from private banks. On july 6,1913 the Government of Canada had inexplicably enacted a law known as “An Act Respecting Banks and Banking” which was cited as the “The Bank Act”. Under the terms of the Bank Act of 1913, exclusive jurisdiction for the control and issue of the nation’s currency and credit was given away to the Canadian Banker’s Association.
The issue and control of currency and credit, once out of government control, soon incurred a heavy debt load. In 1913, Canada’s national debt was a minuscule $550 million. Up until this time, import duties and consumption taxes had been adequate to fund government services. Only four years later in 1917, it had nearly quadrupled to just over $2 billion. Today it is over $565 billion. Instead of recovering those rights given away in 1913 and creating the money needed for the war, the Federal Government allowed the private banks to create it and instead borrow it from them at interest.
This corruption of public finances is now at the core of the economic mismanagement we are witnessing today. Almost all governments fail to recognize a fundamental principle of public finance that has been ignored in order to benefit elite banking interest groups. This principle was clearly stated by Dr. John Hotson, the late Executive Director of COMER, (Committee on Monetary and Economic Reform) who said:
No sovereign government, under any circumstances, should borrow money from commercial banks and pay interest when it can instead borrow from its own Central Bank interest-free.
This unnecessary cost of interest paid to commercial banks is the principal cause of the failure of government tax revenues to keep pace with expenditures. To add insult to injury, these artificial deficits are being used to justify the destruction of public infrastructure services such as health care, pensions, welfare, unemployment insurance, education, cultural funding, and municipal services. The real agenda of the banking and corporate elite is to replace them with private, profit-making corporate services to again benefit the few at the expense of the majority of the people.
What economists and the corporate elite have taken great pains to disseminate is an irrational fear that money creation and spending by governments are the root cause of inflation. What they endeavour to hide with this smoke screen is that cash reserves, formerly used as inflation controls on the private banks by the Bank of Canada, have been abolished and government has almost totally lost its ability to directly control money supply in the public interest. This is the real source of inflation. The Bank of Canada’s control over reserves has been replaced by interest rate manipulation.
This practice of increasing interest rates to control inflation initially causes higher prices and then leads to recessions and high unemployment. Only after recessions do prices eventually drop. Much more effective inflation control is available by returning control of the money supply to Central Banks and by restoring and increasing the commercial bank reserve requirements and can create as many loans and as much credit as they want to out of thin air.
In fact, because 94% of our money supply is debt money, if we paid off our loans we could drastically reduce our money supply, creating a major depression. Under this system, the only way the money supply can be increased to match the growth in the economy is by government and private borrowing. The Federal Government has the power to print notes, thereby circulating interest-free money, or through the Bank of Canada to put low (1.5% – 2%) interest credit into circulation. This was done during World War II and got Canada out of the bank-created money squeeze of the Great Depression. It also fueled the ‘good years’ until the 1970’s, when the Trudeau government changed our economic policies.
The current federal deficit is actually what the government borrows to pay the interest on the national debt to the private banks. The entire national debt could be paid off over time if the federal government took back its power to create money and credit. The Bank of Canada can be used to hold government debt such that interest payments would go back into government revenues. Basically, we are now paying high income taxes, GST and PST, etc. so that the banking and wealthy elite can earn a substantial income by holding risk-free government debt. Almost the entire windfall profit of the private banks in recent years has come from holding government debt.
Believe it or not, we are still paying income taxes under the Income War Tax Act of 1917. Legally, we don’t have to pay income tax to the federal government; it is a voluntary tax. It is also illegal for Revenue Canada Taxation to collect provincial income taxes for the provinces. Also, tax loopholes, foundations, and tax deferrals have permitted those with higher incomes to get off the income tax hook and, with the cancellation of estate taxes in 1975, have allowed a few families to accumulate huge fortunes. Is it possible to NOT pay income taxes? Some people have been successful. Gerry Hart of Winnipeg, apparently won the constitutional argument in court 22 times and had NOT paid income taxes for 40 years, but information on how others have succeeded is difficult to find.
Income Tax – Is It Illegal? by Joseph Duggan was published in Shared Vision in January 1997. The content of this article was partially excerpted from publications of COMER, Toronto, Ontario.
“Ease his pain. Go the distance.”
If you build it, he will come.