4 votes

Taxes Without a National Currency

OK DPers -- this question has been on my mind for a long time, and I've never found a satisfactory answer. Maybe you can help.

How can taxes be paid in a country that has no national currency?

That's a general question, but I'm thinking more in the context of the United States. If we did allow for monetary competition in America, how does the government collect taxes? Does everyone send gold bars to DC via the mail? Does the government just blindly accept every "Joe Schmo's Notes" at face value?

We didn't have a national currency for most of the free banking era. But we still had taxes. Excises, imposts, etc. were still getting paid. Before the Homestead Act the feds were charging for the purchase of federal lands. Did they just accept any state or private currency? What happened if the bank went wildcat, as did happen somewhat frequently?

EDIT: And if the solution is that you just allow the market to set the exchange rate between various currencies, what currency does the government use to set your tax bill? And then isn't that currency basically a national currency?

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Government is force, so they can use that force to demand

payment of taxes in whatever form they desire.

IMHO it only becomes a national currency if it is forced to be used for other purposes than tax remittance.

No Ponzi FED no income tax

Look at when the FED came into being as well as the income tax.

Complete scam on the American people and wealth confiscation.

End the FED

Abolish the IRS.

Since there's no such thing as government...

this is not really a problem.

On the other hand, anything that makes life harder for the criminal element of society, should be something worthy of consideration.

The free market will always provide moneychangers

to convert currencies, much as now happens when you convert currencies when travelling abroad, or use a credit card to make foreign purchases.

Admitedly, I won't be losing any sleep wondering how to make it easy for the government to collect taxes.