Taxation, Inflation or Expatriation

Many people have been trying to reform the U.S. tax laws for many decades, but without much success. With each attempt, the politicians add more complex provisions to the tax code and in a few years, they introduce new tax breaks for various supporters and interest groups.

Meanwhile, even if the income tax were eliminated, the government could generate unlimited money through the inflation tax. This is done by issuing Treasury notes to the Federal Reserve in exchange for new money. Combined with the fractional reserve banking rules whereby banks are allowed to loan out as much as 90% of their net deposits, the new money causes an increase in the money supply and in inflation.

For those who despair of being able to repeal the income tax and the ability of the Fed to create new money, there is the alternative of expatriation -- of giving up citizenship after acquiring dual citizenship in another country. New laws passed in June of 2008 impose a complex "exit tax" on the unrealized gains and deferred income of expatriates. But for those who have modest assets and are seriously concerned about the increasing degree of government control over the economy, there are other countries that offer lower taxes and less government intrusion.

I've just completed a new book called "The Tax Reform Alternative" that ties together these three issues. How can we reform the income tax? How can we limit the ability of the Fed to create new money? And if we can't do that, how can we escape from an America that is turning into a socialist state? It's available as an e-book (in a PDF Format) and is designed to be easy to read on a digital device like a computer, ipad or smart phone. The price is a a modest $15 and can be ordered at http://www.offshorepress.us/rismanforami.html

Copies are available at no extra cost to paid subscribers of my online library of e-books and my bi-monthly newsletter. Further details about The Tax Reform Alternative are available at http://www.offshorepress.com/vernonjacobs/taxreform2010.html

Vern