Do you know that the Federal Reserve is NOT a government agency,. rather they are a group of private banks, and that they profit from your taxes? Like they say...the truth is out there....you just have to look and act if you dont like it.
2007-01-21 12:07:58 · 9 answers · asked by tjcsonofallnations 3 in Business & Finance ➔ Taxes ➔ Other - Taxes
The Federal Reserve System is organized with a government agency at the top (the Board of Governors), and branches beneath them that resemble private corporations. (http://www.federalreserveeducation.org/fed101/structure/ )
- To review the federal reserve structure...
At the top of the Federal Reserve System is the Board of Governors. These are all appointed for 14-year terms by the president and confirmed by congress. It operates per it's charter and laws set by congress. it is overseen by congress. There is no structure or mechanism for private ownership at this level. In fact, board members are forbidden by law to have any economic interest in a private bank.
The 12 branches, however, are organized similar to private corporations. Member banks are required to buy shares in their branch. They can vote for 6 of their 9 board members. The shares get a standard 6% dividend. These shares cannot be sold on the open market. All 'profit' from the Federal Reserve branches are turned over to the Treasury at the end of the year. Is this private ownership? The Fed says no. (see
http://www.federalreserve.gov/generalinfo/faq/faqfrbanks.htm#6 ). The courts show a split decision.
I equate the arrangement to a government agency (the Board of Governors) contracting out the day to day operations to a tightly controlled and regulated company.
- To review the profit from taxes
I believe the comment comes from the interest earned from the T-bills that the Federal Reserve buys/sells to control currency in circulation. And it is true that member banks get a standard 6% dividend on the shares they own in a Fed Branch,
However, after the dividend and all expenses are paid, the rest is returned to the Treasury.
That's about 98% of the interest making it almost an interest free loan. Not a bad deal for tax payers.
the truth is out there....you just have to look
2007-01-22 03:50:50 · answer #1 · answered by gray shadow 6 · 0⤊ 0⤋
We pay taxes and YES we do profit from it. We get government- funded healthcare, Social Security (although I know the funds are disappearing by the minute), and oh yeah... we get the luxury of having democracy. Only apprx. 30% of the taxes people pay go back to government employees and other related "things" to help the government run. Of course the government is slow and the bureaucracy is crazy but it is one of the best government in the world because it works and people in America aren't tortured and we don't have terrorists blowing themselves up here.
Paying taxes is one of the most American you can do because it even though it is painful to your paycheck, you are contributing to the functioning of this country.
If you want to blame interest on money paid, you should blame your Congressmen because they set the Interest rate, not the IRS. The IRS is sort of like the police, they don't make the laws, they just have to enforce them. Besides, interest on money you owe means you didn't make your estimated tax payments or because you failed to pay on time.
Besides, freedom comes at a price.
2007-01-21 20:23:53 · answer #2 · answered by porselin 2 · 1⤊ 0⤋
Federal Reserve? What do they have to do with taxes.
My non-profit also benefits and they are not a government entity. It is you that benefits from the stable banking system.
As for your tone of tax evasion...good luck with that... after you graduate from High School and get a job you'll be forced to pay tax and you'll have to come to grips with it all.
2007-01-21 21:31:58 · answer #3 · answered by Nusha 5 · 1⤊ 0⤋
But the IRS is a government agency--as is Social Security
2007-01-21 20:13:13 · answer #4 · answered by Holiday Magic 7 · 0⤊ 0⤋
this is true and even sadder is the fact that they charge us interest on our own money. Even worse than that - they don't report their profits to the IRS, even worse they are mostly foreign country owned banks leaching off of the US. Kennedy tried to make it so the US was making it's own money and we all know what happened to him.
Dane - the deal is that the FED is above the IRS - maybe you are the one in need of education. I can set up some tutoring for you if you like.
2007-01-21 20:12:33 · answer #5 · answered by John P 6 · 0⤊ 1⤋
What does the Federal Reserve have to do with taxes? Get an education for Christ's sake.
2007-01-21 20:10:22 · answer #6 · answered by Dane 6 · 4⤊ 1⤋
what are you taking about. The us treasury department is the one who collects tax revenue thats why when you have to owe money to the government you make your taxes out to the us treasury not the federal reserve.
2007-01-21 20:19:12 · answer #7 · answered by Ski_Bum 3 · 2⤊ 0⤋
And if you don't pay, the IRS will come for you. So then what?
2007-01-21 20:12:24 · answer #8 · answered by ? 6 · 0⤊ 1⤋
Good! ... and now?
2007-01-21 20:10:40 · answer #9 · answered by smiling_freds_biz_info 6 · 0⤊ 0⤋