Taxation for Revenue Is Obsolete, January 1946, American Affairs. Costed Manifestos? Wheres the beef?

I did this blog of a facebook page posted this morning following frustration at the continued low quality and plain wrong information given out by Politicians but also by pundits and the Vaunted BBC Reality Check videos.


In 1729 Benjamin Franklin wrote a pamphlet ´´A modest Enquiry into the nature and the necessity of a paper Currency.”
a modest enquiry,
”There is no Science, the Study of which is more useful and commendable than the Knowledge of the true Interest of one’s Country; and perhaps there is no Kind of Learning more abstruse and intricate, more difficult to acquire in any Degree of Perfection than This, and therefore none more generally neglected. Hence it is, that we every Day find Men in Conversation contending warmly on some Point in Politicks, which, altho’ it may nearly concern them both, neither of them understand any more than they do each other.


This Following video along with the follow-up embeds of various helpful films along the subjects of ; Money creation, Sovereign Money Creation, Sovereign debt and Political economy, will provide anyone with the stamina the tools required to cut through the Crap. With these tools, one can evaluate the job that is being promised by the various Parties. Sadly it is very much the blind leading the deaf and blind or, at best, the Myopic leading the hard of thinking.


Full Recorded Speech, Taxation for Revenue Is Obsolete,  Beardsley Ruml 

Take this Quiz and see How you fare.

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; }

Jan 28, 1955
This recording marks [the first?] meeting of the President’s Committee on Employment of the Physically Handicapped. Arde Bulova, Chairman of the Special Employer Subcommittee, invites several speakers to the microphone to discuss the importance of hiring disabled workers, with special emphasis on those disabled on the job or in combat.

Melvin J. Maas, Chairman of the Committee
General Omar Nelson Bradley
Harvey V. Higley, Administrator of Veterans Affairs
Beardsley Ruml
Mary E. Switzer, Director of Vocational Rehabilitation
Dr. Howard Rusk
Phillip D. Reed, General Electric
Henry (Hank) Viscardi, Abilities, INC.
Robert Freelander, Come Play Products
Leonard W. Mayo, Association for Aid of Crippled Children

Beardsley Ruml

From Wikipedia, the free encyclopedia
Beardsley Ruml (5 November 1894 – 19 April 1960) was an American statistician, economist, philanthropist, planner, businessman and man of affairs in the 1920s, 1930s and 1940s. He was born in Cedar Rapids, Iowa. His father, Wentzle Ruml, was a country doctor. His mother, Salome Beardsley Ruml, was a hospital superintendent. He received a BA from Dartmouth College in 1915[1] and a Ph.D. in psychology and education from the University of Chicago in 1917. On August 28, 1917 he married Lois Treadwell; they had three children. A pioneer statistician, in 1918 he helped design aptitude and intelligence tests for the U.S. Army. Ruml viewed society as composed of groups whose traits could be measured and ranked on a scale of normality and deviance.
From 1922-29 he directed the fellowship program of the Laura Spelman Rockefeller Memorial Fund, focusing on support for quantitative social and behavioral science. He was an advisor to President Herbert Hoover especially on farm issues. In 1931 he became dean of the Division of Social Sciences at the University of Chicago—a center for quantitative research. He was not popular with the faculty and in 1934 Ruml became an executive of R. H. Macy & Company, parent company of the department store, rising to chairman in 1945. He also served as a director of the New York Federal Reserve Bank (1937–1947), and was its chairman from 1941 until 1946;[2] he was active at the Bretton Woods Conference (1944) that established the international monetary system. He was active in New Deal planning agencies but their plans never saw fruition.
In the summer of 1942 Ruml proposed that the U.S. Treasury start collecting income taxes through a withholding, pay-as-you-go, system. He proposed an abatement on the previous year’s taxes, making up the revenue by immediately collecting on the current year’s taxes. In 1943 Congress adopted the withholding system.
In 1945, Ruml made a famous speech to the ABA, asserting that since the end of the gold standard, “Taxes for Revenue are Obsolete”. The real purposes of taxes were: to “stabilize the purchasing power of the dollar”, to “express public policy in the distribution of wealth and of income”, “in subsidizing or in penalizing various industries and economic groups” and to “isolate and assess directly the costs of certain national benefits, such as highways and social security”. This is seen as a forerunner of functional finance or chartalism.
Ruml wrote several books and essays, including “The Interest Rate Problem,” “Memo to a college trustee: A report on financial and structural problems of the liberal college,” “Government, Business, and Values,” and “Tomorrow’s Business.”
Ruml died April 19, 1960, in Danbury, CT.


  1. Jump up^ “Guide to the Beardsley Ruml Papers: 1917-1960”. University of Chicago Library. Retrieved 2007-08-20.[dead link]
  2. Jump up^ “Away From It All”Time. September 1, 1951.


  • Patrick D. Reagan; Designing a New America: The Origins of New Deal Planning, 1890-1943 University of Massachusetts Press 2000.
  • Patrick D. Reagan, “The Withholding Tax, Beardsley Ruml, and Modern American Policy,” Prologue 24 (1992): 19-31.
  • Beardsley Ruml, ‘Taxes for Revenue are Obsolete’ American Affairs, Jan. 1946, VIII:1, p. 35 pdf html

External links[edit]



Working Paper No. 717 Introduction to an Alternative History of Money by L. Randall Wray* Levy Economics Institute of Bard College May 2012


The increase in debt misery is not chance: it is by design



As the Guardian notes this morning (and the length of the extract is important given the importance of the issue):
The number of households struggling with problem debt grew by a quarter between 2012 and last year, as stagnating wages forced a growing number to borrow to get by, according to the TUC.
By 2014, 3.2 million families were spending at least 25% of their gross monthly pay on servicing unsecured debts, the definition of problem debt. The figure for 2012 was 2.5 million, according to research commissioned by the TUC and Unison.
Young people, the self-employed and low-income families recorded the biggest increases in debt.
The report said 1.6m households were spending 40% of their gross income on repaying non-housing debts. Of those, 1.1 million were earned less than £30,000 a year.
This is not chance. As I have explained on the blog, time and again, if the Chancellor is to reduce his borrowing (which effectively means he wants to increase his savings) then someone else has to spend instead. That is a simple accounting fact that cannot be avoided.

So, George Osborne has effectively been forcing households to borrow, by holding their real earnings constant, by cutting benefits and letting some key aspects of inflation occur. They have reduced their saving as a result as this chart from the Office for Budget Responsibility shows:

Check out Richard Murphys exce3llen Blog.


Author: rogerglewis Looking for a Job either in Sweden or UK. Freelance, startups, will turń my hand to anything.

4 thoughts on “Taxation for Revenue Is Obsolete, January 1946, American Affairs. Costed Manifestos? Wheres the beef?

Leave a Reply