Thank you for your post. You are absolutely right, that to rein in the government you have to take care of legalized counterfeiting. For that please check out:davedan wrote:I like this user fee idea.
One big source of potential revenue is in money creation. Since the Federal Government is given charge to "coin the money", anyone who uses money could be subject to a fee.
Currently, the Federal Government only collects "prime interest" on a fraction of the money that is created. And it usually works out that "prime" is less than the interest carried by the bonds from which that money was created from.
Therefore, thinking along these lines. the federal government could collect revenue on all no-interest loans via "loan origination fee" or a "loan monthly servicing fee"; all those who wish to borrow money to purchase a home, buy land, or start up a business; if you borrow money, you pay 1% fee. If you wish to avoid the fee, you save and pay with cash. This kind of system would encourage people to save instead of borrow.
I do not believe in a VAT/ad valorum/value added tax on every transaction, because that gives the Federal Government the ability to track every transaction, and control every transaction, and tax every transaction.
US Treasury creates all money
non-profit Local Banks issue no-interest loans
Local banks collect loan origination fee, and monthly loan service fees
Those fees cover the overhead of the bank, and generate revenue for Federal Gov.
Only those who borrow money are voluntarily subject to fee.
Honest Money Constitutional Amendment
http://www.ronpaulforums.com/showthread.php?t=251788
Money is just another product. Under this amendment, the government cannot tax the medium of exchange.
US Treasury should not create all the money. Any one should be able to crate money. Then only honest and stable currency, like gold and silver, will survive and prevail.