Chapter 1763 No Tax Increase

What should I do when I find out that the banknotes in my hand are counterfeit? No one will think about sending it to the bank for destruction, and almost will try to spend it to reduce their losses.

It's human nature.

Now, Cyric is thinking the same way.

Use balloon bombs to carry printed dollars, and when they reach the sky over the United States, these dollars will be picked up by people. The dollars that fall from the sky will make American citizens ecstatic. In this way, these counterfeit coins will soon circulate.

Even if the U.S. government realizes that these dropped coins are counterfeit, and even if the U.S. government repeatedly asks people to automatically hand them over to the nearby police, will people listen?

Most of them don't listen and are thinking about how to spend the money.

In this way, these counterfeit banknotes are naturally circulated in the United States. As more and more counterfeit money pours in, it will disrupt the financial order of the United States, and the US economy will also be hit as a result.

For Cyric, this advice was the best, but not for the islanders.

After working for a long time, you are busy working in vain?

They have a cost in printing counterfeit money, and the cost is not low. Of course, they hope to spend this batch of counterfeit money, even if it is not equivalent exchange, at least they have to benefit themselves.

And now, with Cyric's proposal, then they have no benefit at all, giving it away for free, how can they do such a stupid thing! In addition to the increase in the domestic currency of the United States, what can I do for myself?

No, it's just a bad idea!

Gu Hefeng instinctively wanted to object, but thinking about the current situation, he swallowed these words back in his stomach.

So, only Cyric was left to continue to express his views there.

"In this way, within a month, the United States will be flooded with a large number of counterfeit money. If the Americans call for it, the secret of the balloon bomb will be exposed and cause more panic. In this way, no matter what the Americans do, it will be wrong. Yeah, it kills two birds with one stone. Well, I have a new idea, how about you get some war bonds in addition to these dollar bills?"

War bonds? Hearing Cyric's words, Gu Hefeng was stunned for a moment, that thing has to be faked too? What is the use? American release?

 …

At that time, the German economy was on the verge of bankruptcy. Anyone who came to power intended to increase taxes to restore the country, but was driven out by the people. Only Hitler proposed a new plan, which was to increase investment and carry out national infrastructure construction. In this way, the German economy actually took a terrifying take-off and quickly recovered.

Then the question arises. Germany needs funds to restore its economy. How did those funds come from?

Of course, it was by borrowing. In addition to scouring the Jewish wealth in the country, the more important thing was borrowing from Wall Street. When the time to repay the debt came, it happened to start a war with the United States, and this debt was completely paid off.

At the same time, the United States is also facing the same terrible problem. The war is simply a bottomless pit. In order to win this war, the United States has to increase more investment. Even the Lend-Lease Act was passed, and the Grand Duke selflessly lent out his own production.

And now, America is about to go bankrupt.

Hearing the words of his most trusted Secretary of the Treasury, Roosevelt also frowned. The Navy wants to build warships, the Army wants to build tanks, and aircraft, all of which are astronomical. The Manhattan Project was even more heavily invested in. After the war started, there was a large amount of pensions. Now, the financial situation of the United States is indeed not good.

"We've got to get this out of the way," Roosevelt said. "How about we add a little more tax?"

Roosevelt is best at the economy. After all, when Roosevelt came to power, his biggest contribution was to pull the United States out of the economic crisis. At that time, he cut taxes. Now, what he needs is to increase taxes. To get funds, the first thing that comes to mind is tax.

Moreover, because of the war, no matter how much tax is paid, the people will understand that America is the last free world. If America falls, the whole world will plant that terrible swastika flag.

Hearing Roosevelt's words, Marshall immediately objected: "No, we have already added taxes twice, and we can't add more."

When the war had just begun, that is, when Roosevelt passed Congress and declared war on Germany, Roosevelt drafted and passed the tax increase policy to increase personal income tax, corporate income tax and excess profit tax. After the eastern coastline was bombed by the Germans, Roosevelt decided to once again Tax increase, of which the maximum levy of personal income tax has reached a terrible 94%!

What is this concept? Only 6% of the income can be kept, and the rest will be withdrawn.

Of course, there is a threshold for this tax rate, and only those with an annual income of more than $200,000 will pay, and the tax rate for the excess is such a terrible figure.

Although tax hikes have been made vigorously, now, the increased taxes are not enough to maintain the terrible expenses. All the fiscal surpluses from previous years have been eaten up, and the US government is going to go bankrupt.

Marshall is quite clear that continuing to increase taxes will make the people completely disgusted, and maybe they will force the people to go to Germany. Look at Europe, those countries under German rule, how good is the life of the people and how low the tax rate is , as long as the Germans start to do this propaganda, the psychology of the people will change.

It can't be added. Since ancient times, isn't the demise of any country caused by extortionate extortion of the people?

Roosevelt nodded. He also knew that the tax could not be increased, so what else could be done besides increasing the tax? Do you want to issue additional currency? Print more dollar bills?

This thought only flickered in Roosevelt's mind, and he couldn't help shaking his head with a wry smile. This method is absolutely impossible.

Direct issuance of currency is terrible. Although it looks similar on the surface, it is because the government has more money and the people have less money. When the government uses this money to buy things and make payments, it will cause terrible inflation.

This is uncontrollable. For example, if 10% of the currency is over-issued, the inflation caused may be 50%.

If everyone knows that the government prints money, those who have money in their hands quickly take the money to buy things and stock them up, and those who have goods in their hands will keep their things in their hands and not sell them. There is 10 percent more money in the market, but 30 percent less merchandise.

This is quite scary and may even bring about the collapse of the entire monetary system.

What's more, the United States is different from other countries. The power of the United States to issue currency is not in the hands of the government, but by the Federal Reserve. It can also be said that it is monopolized by super merchants in the United States.

(This system is very peculiar, and it also shows the essence of this democratic country. President Kennedy was assassinated. Why? It is said that he wanted to take back the power to issue currency. Of course, this is a legend, please don’t complain.)

Roosevelt knew the horror of over-issuing money. This method seems simple, but in fact it is the most complicated.

It seems that there is only another way left.