I agree. It's important to see, though, that the taxes paid by the Fed are
more than offset by interest payments going the other way--the "more
than" serving as operating funds and for the odd ice-sculpture--so that
the Fed is in this respect, as a "taxpayer", in a class of its own. (This
ignores earnings on discount loans.) An increase in taxes paid by the Fed
doesn't allow more spending--except the implied interest payments to the
Fed--or a cut in anybody else's taxes. De facto, of course, that's the
case with lots of corporate profits taxes, too! Self-financing and
independence generally are entirely undemocratic: I didn't mean to imply
otherwise.
On Mon, 12 Dec 1994, Jim Devine wrote:
> The Fed isn't really "part of the government" but a largely independent
> government-sponsored and -chartered bank (that typically acts as a
> cartel for the banks).
>
> in pen-l solidarity,
>
> Jim Devine
> [EMAIL PROTECTED] or [EMAIL PROTECTED]
> Econ. Dept., Loyola Marymount Univ., Los Angeles, CA 90045-2699 USA
> 310/338-2948 (daytime, during workweek); FAX: 310/338-1950
>
