So what happens when IRS etc is abolished?

The elimination of the IRS would cause an instantaneous boom in American unprecedented in modern history. With the entire population suddenly finding themselves with a 30% (or more) increase in their income the whole country would suddenly find themselves rich again and able to invest more money in their business, purchase more things, and it would be a huge step toward healing our economy. The military, of course, would be brought back home to protect OUR OWN country instead of the other countries of the world. It could probably be significantly reduced as well (which could be done through attrition). Reduction of the hundreds of existing bureaucracies could also be done by attrition: just quit adding new people to them. As people retire they would grow smaller naturally. On the other hand, many of these agencies should just be shut down overnight. Just like so many of our own private sector people are having done to them because of businesses shutting down because we have to support this giant behemoth. Give 'em a 2-week notice and a check and send them home.
www.paulforronpaul.com

You can't do this overnight. It would have to be a gradual process. You would have to cut down the size of the departments... and bring the troops home gradually.

But imagine if taxes were also gradually reduced. More people having more money means more consumption... and therefore more production. People with money in their pocket will spend it. This means businesses will do better.

Businesses that are making money move into new markets, open new stores, and expand their operations in general. This creates more jobs for the people who can't work for the government any longer.

As long as you phase out slowly, I don't see how it couldn't work.

It's like the Bush croneys used to say about the tax cuts. Cut taxes on businesses, and they expand creating more jobs. And it seemed to work. Many new jobs were created after Bush's tax cuts. The only thing was, his tax cuts were mainly only for the rich. Dr. Paul's cuts would benefit everyone.

I assumed the answer to this, as allured to elsewhere, was if folk kept more of their income to spend, then naturally we would be able to a/invest in new start-ups,b/ buy new products, c/ replace worn appliances(Domestically-Made hopefully, thereby creating sales and manufacturing jobs, servicing jobs, delivery jobs, tourism, themeparks, whatever? If folk had spare cash then ex-government jobsworths could even clean your windows. Military jobs mirror civilian jobs to a large extent when we talk about IT, engineering, physical training, education, intelligence, demolition, re-building, vehicle servicing, bridgebuilding, crater repairs, road building, welding, problem solving, survival and medical. (Apologies if I've left a profession out but you get the drift)? The problem we have now is that because so much tax is taken we sometimes need to borrow money and not save or invest locally. Too much red tape puts many folk off starting a business in the first place.

'I always think of all you canvassors and precinct leaders and delegates at the front line and caucuses.
Good luck out there &Thank you. You're a gift.

About "what if we give people freedom". Having economic freedom and more of my money doesn't sound scary to me. Does it sounds scary to you?

would still be employed, but would be paid to protect our own country and our own people. Do you think we would have a terrorist problem if we had troops on our borders, and actually enforced current immigration law? I don't. And how much more proud would they be to serve, and we would be to have them home protecting us insead of inciting hatred around the world. We would never put up with another country doing to us what we are doing around the world. Citizens would rise up against if it happened here, just like they do overseas. Who the hell are we to meddle? We should be an example, not an enforcer. The military service people have homes to come home to. Where do you think they go when they come back from their tours? Elimination of the gov't departments will breed prosperity to no end, and bring innovation back into markets without gov't intervention. My brother owns his own CPA firm, and most of his clients are businesses and corporations. He would still have a job, because corporations will still have taxes. Name me one gov't agency that wouldn't be better served by the private sector? Even elements of the military could be privatized.

Alot of people are very short sighted and can't see past year, nevermind next generation. The Federal Reserve and IRS was set up 100 years to steal the American workers money and funnel it into private hands who had the foresight to see the implications of that plan 100 years ago.
The implications of that plan is today America is bankrupt, quickly becoming a third world country-accelerated by the decimation of the middle class due to rampant illegal immigration, trumped up false taxes, hypnotic TV with its illusions of wealth by stockpiling junk, and overall malaise of the American People.

Ron Paul's plans will see stiff opposition from all sides because every other politician is funded directly or indirectly from the central banks. As Dr. Paul has stated several times his programs would wean people slowly off the welfare they were accustomed to and at the same time put money back into Americans pockets by reducing the IRS, solidifying our currency, and eliminating waste overseas. This is a lifetime plan that might not see its end in the next presidency.

As NAFTA, CAFTA, GATT, and the WTO are dissolved as well as our UN obligations America will look towards taking care of its own sick and hungry people. The corporations will not have any incentives to outsource overseas and will use the factories that were shut down in the U.S. More jobs will emerge as corporations see it is in their best interests to hire American workers and produce american goods.

Several years ago our school district hired a well known (forgot his name-lol) educational trend predictor. These are well read people that analyse large amounts of data and come up with an educated guess of what is coming. According to the one I listened to, he said that 80% of the jobs our children will be doing have not been invented yet. He also said that people will be changing careers several times in their lives.

We all need to be more adaptable.

Maybe they could afford to start a small business of their own with the IRS off our backs and out of our wallets. They will be reunited and live with their family.

maybe those over protected and over paid government employees can learn to struggle with those of us who have seen our jobs go overseas?

like the ex-IRS guys will have to get jobs in private industry, where they will actually have to be productive.

You want to know??? Or are you just trying to think of the biggest problem there might be? Are you just zeroing in on what you conceive as a problem to the most awesome position we have been in for my life time. You ask because if you were given ice cream, you would say what if I eat it too fast and get a hurting cold throat. I would love to trade that little problem for the problems we have now.

It has already been stated by corporations that if we got rid of the income tax, they would come back to our shores. The prices here would go down and we would become competitive with the world again. Our economy would have real growth instead of air bubbles. There would be jobs in the housing market. There would be people freed up to solve some of our multitude of problems. We would probably get to build our roads ourselves instead of letting some global company come in and do it and then charge us tolls.

Give me a break from your question. That question always screams, "I am not with you and I want to figure out the worst thing I can possibly say about your idea." We are not worried about jobs coming back and being available. But we are worried about being prisoners in our own country.

I would be in the streets dancing (badly of course). But it would be a great day.

Ron Paul (and many other prominent libertarians) have explained many times that these changes would not and could not occur overnight.

The key is that most if not all major changes would be executed in a phased approach.

So for the people living overseas who would be brought home, it would be done in phases. Maybe, say, 5% at a time. Whatever is significant but manageable. There might be some training offered before they are taken off the dole.

Some government programs would be cut immediately, I'm sure, but government employees would probably again be offered training and be encouraged to find work elsewhere. Later, mandatory retirement would be phased in.

I'm not sure exactly how we would reinstate the gold standard, but that can probably be done fairly quickly. The Fed could divide the amount of gold by the number of dollars circulating in the money supply, declare the supply to be fixed and each dollar worth 1/Nth of an ounce. That would cause some temporary chaos, to be sure, but also private banks would be allowed to issue their own competing currencies. I would think that particular transition could be done relatively quickly (within the first few months if not weeks of a Paul presidency).

Changes in the medical industry could also probably be implemented fairly quickly. For example, removing tax breaks for employer-based health insurance and making individual payments for health insurance could actually be done practically overnight, though it would probably be less traumatic to announce this in advance and give the market a chance to react.

In any case, the economy would definitely evolve, and grow like gangbusters. It would be revolutionary.

You know what these questions are? All the questions I'd love to have to answer in reality! If the income tax went bye bye, all the IRS people would have plenty of time living off their newly non-taxed income to find themselves a new career. Soldiers would be able to afford housing. The military would be able to afford building new housing. Etc etc etc.