Present taxes are a robbery
present tax to pay for the road deprives me of bread. It steals my
bread. This tax is a robbery. Today's taxes that put me on rations
amidst plenty are not in conformity with reality. They rob me of the
private goods that I would obtain with the money I must use for taxes.
taxes are a robbery. Present taxes must be abolished. You have heard the
"White Berets" repeat these two sentences many a time. You
might believe that they are but pure propaganda slogans used to strike
businessman who stopped by the "Michael" Office, told us as he
left our house: "I am very happy with my visit here. I learnt
something that I did not know : that the present taxes are truly a
robbery, that they must disappear and can disappear. I did believe that
your posters only expressed a slogan. But I now see that it is a truth
established on solid arguments."
young student of the University of Ottawa attended one of our meetings.
He declared that he was delighted to finally understand how public works
could be financed without taxes by a provincial credit system, and how
the withdrawal and issuing of money would be done by a Social Credit
taxes are a robbery. We will repeat this with conviction and obstinacy
until they are abolished. For they are the ruin of our families and of
income tax, with its intolerable reports, is a nightmare for all. The
property tax and school taxes that constantly increase, that chase the
families from their homes, snatch farms and enterprises from the hands
of those who built them; the school taxes of the small towns have
already chased towards the cities the heirs of the country's founders.
federal tax on production causes bookkeeping, reports and inquiries for
our businessmen. The Pension Board, another tax disguised under a false
name, adds to the already intolerable burden of taxation. And this
legalized robbery keeps up increasing. It is a robbery accomplished by
the law itself — the government which first of all is supposed to be
the protector of the people against all invaders, robbers and others.
of these taxes must disappear without delay. The most clever schemes of
our governments will be nothing but vain gestures as long as the present
tax system is not abolished. Our governments act as protectors of the
robbers. They are their loyal lackeys.
taxes are a robbery. In order to understand this, let us proceed by
questions and answers.
— Why taxes?
— To pay for public services, roads, firemen, etc.
— What are roads built with?
— With material goods, such as sand, cement, etc., and with labour.
— What do the men who build the road live on?
— On material goods, such as bread, housing, etc.
— What is required to produce these material goods?
— Other material goods and labour are required. There are public
services, like roads, that require material goods and labour. And there
are private services, like bread, that require material goods and labour.
Public and private services: two sectors, the public and private one.
These two sectors require material goods and labour.
population possesses money, purchasing power, to pay for the services of
both sectors, public and private, the road and the daily bread.
— And what are taxes?
— They are a part of the population's money subtracted from the
private sector to pass to the public sector, subtracted from the daily
bread to pass to the road. The government wants me to do without bread
in order to pay for the road.
— But is it necessary for me to do without bread in order to pay for
— Not at all. There will be just as much bread for sale if we build a
road, during the construction of the road and after its construction.
There will be just as much bread for sale. So there is no reason for me
to do without bread since the baker will not change its rate of bread
production and will not diminish the quantity of produced bread. If it
were the baker who was to build the road, I would lose my baker and my
bread. But no, the baker continues to bake bread. So why should I do
without bread? The tax to pay for the road deprives me of bread. This
tax is a robbery. It steals my bread.
long as the production of the private sector continues at the same rate,
the government must not take a single penny from my pocket to pay for
the production of the public sector. I must keep all of my purchasing
power for the private goods and services as long as private services are
not reduced. And the construction of the road does not reduce them. On
the contrary, the construction of the road is good for business, and
even brings about an increase in the production of the private sector.
the baker stopped baking bread because a road is being built, then a tax
could be levied to take away my purchasing power for bread and use it to
pay for the road. But today's taxes, which deprive me amidst plenty, are
not in conformity with reality. They are illegal. They are a robbery.
They rob me of the private goods that I would obtain with the money that
I must give for taxes.
— But, then, how do you want the government to pay for its road?
— The government must pay for its road with new money, created by a
Credit Office, at the same time as the road is created. The engineers
and workers build the road. The financiers must create the credit, the
money to pay for the road, as the road is built. They must create as
much money as required. Brand new money, since it is a new road. Money
taken from nowhere, neither in the taxpayers' pockets nor elsewhere.
Money specially created for the road. For a new production,
newly-created money. New money for a new road. As you can see, the road
is not paid for with taxes, but with new credit, since credit is money.
— Yes, but if the Credit Office thus always creates new money for all
public services, there will be a lot of new money! Will this not cause
— The Credit Office must create money for the production that is being
made, and destroy money for consumption and wear. This National Credit
Office keeps the national accounts. It keeps the accounts of production
and consumption, which is made up of the use of material goods and
labour, and the wear of things. The Credit Office creates money for
production and destroys it for consumption. It creates it as production
is made, and destroys it as production is consumed. In this manner,
there is a constant balance between the prices of goods and purchasing
this balance, individuals are provided with all the necessary money to
pay for all private and public services.
— Do you mean the Credit Office must also create the money for private
— Most certainly. The Credit Office must create the money for all
production, private and public. The money created for private production
is distributed to individuals through three channels: finance without
interest to private enterprises; the discount on prices, given to
buyers; and the dividend to all citizens. And the money created for
public production is handed to the governments for public services.
This is how taxes disappear. Also disappearing is the largest part of
the taxes, the part that is presently used to pay the interest on public
loans and to repay the borrowed principal. The national debt will no
longer exist, and consequently, there will be no more need to service
that debt. Taxes will be lowered accordingly.
— But, then, do you mean there will still be some taxes to pay?
— Services like garbage collection and firemen will still be paid for
by the taxpayers. But the Credit Office must distribute to the
individuals all the required money to pay for all public and private
services. Services must be paid for with money. Money is an accounting
system. Accounting must never lack in front of offered services. There
are firemen, men who are ready to put out fires. The wealth is our
firemen. True wealth, real wealth. The Credit Office must include in its
accounting this real wealth represented by our firemen. And the Credit
Office must make sure that the population has the required money to pay
the firemen. The same for the private sector. There is as much butter
for sale as the population can consume. Butter is the true wealth, the
real wealth. The financial wealth, the money-wealth, is only an
accounting. The National Credit Office must make sure that the individuals
do not lack money to pay for butter.
part played by the Credit Office is to supply money to the country, just
as the farmers' part is to supply food to the country. If the farmers do
not need a lot of persuading to do their part, why should the Credit
Office ? Today, the Credit Office is not a national office but an office
of private individuals. It is the banks, which exist for the profit of
the bankers; instead of a true Credit Office, well kept, that would
exist for the whole population. It would be a national or a provincial
Credit Office: A Quebec Credit Office, an Ontario Credit Office, etc.
— So we must absolutely have a National or Provincial Credit Office!
A. — Certainly. Without a National Credit Office, it is anarchy in the money system, in our family budgets and in the governments' budgets. Taxes are a robbery. The whole present financial system is a robbery from A to Z. This is well explained in the "Michael" Journal. And we have good booklets that throw light on the great wonder of the technique of Social Credit, and on the scandalous swindle of the present financial system and its taxes.