where is the law that requires us to pay fed income tax? where does our personal fed income tax go?

Question

Yeah I got two questions more if you don't mind :P

where does the national debt come from?

when the fed reserve lowers the interest rates why does the stock market ralley but dollar deflaits?

Thanks for helping me I really appreciate it.

Answer 1

Title 26: Internal Revenue Code

http://www4.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26.html

I believe that budget office has a breakdown of how your tax dollars are spent. There is no truth to the tax protester theory that the personal income tax goes just to the Federal Reserve.

The national debt comes from Congress continually spending more money than taxes take in. The government then has to issue debt to cover the shortfall. It is ironic that, now that the Democrats have controll of Congress, the President is concerned about fiscal discipline. He didn't seem to care when his party was spending the money. In his world: Money for Haliburton - Good; money for children's health care - Bad. But I digress...

The stock market usually rallies on a interest rate decrease because the cost of borrowing goes down. Most businesses have some sort of debt and if the cost goes down, company profits go up. I am not sure why the dollar goes down. You would have to ask an economist.