What Kind of Money Pays Income Tax?

Theory:

All Income Tax is paid in real money!

Real Money is the the Money Supply of the USA.

The Money Supply of the USA is the M2 Money Supply.

Proof that contradicts the Theory:

Fact:  Income Tax can be paid with a credit card.

Analysis:

Wikipedia describes a Credit Card as:

.....a payment card issued to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder's promise to pay for them.^[1] The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user.

Using a credit card to pay Income Tax is no essentially no different than taking out a loan from anyone, putting the loan in your checking account and then writing out a check to the IRS that draws from an positive on hand M2 money balance. 

Credit spends like real money!  While you, the credit card holder, don't have to pay back the credit card loan until some later date depending on the terms and conditions of the credit card, the government gets its payment from the credit card company immediately.  Payment made by the credit card company is out of the M2 money supply.

As we all know, credit cards are as good as (actually better and more readily accepted as payment)a check.  I think that a credit card has even most preferred by the payee rather than cash dollars and coins that have to physically processed in some way after the sale.  Brinks is going out of business.

IRS rules and regulations specify which credit card companies are approved for payment of Income Tax.

A credit card payment draws on a revolving credit account.  Credit spends like real money, credit is real money because in the debt money system every credit amount must have a debit amount.

A debit card draws on a revolving debit account. A savings account.  A savings account is unspent money in the bank.

Both spend like real money!  Both are real money!  All money is debt money!

Wait,, wait,,,don't tell me!  See if I can figure this out!

A debit card spends debt money?  How can my money in the bank be debt money?  It is my money.  I earned it.  It is my asset, I own it.  Where is the debt if it is mine?

The debt money account that balances the money we all have in our collective savings account is the National Debt.  It balances to the penny.  It, like a credit card is a revolving line of credit.  A line of credit funded by those that financed it by buying government debt.

What kind of money was used by those that financed the government debt (line of credit revolving fund) called "National Debt" use to loan to the government?

M2 money?

The same kind of money we use to pay Income Tax?

Wait....Wait...don't tell me!   I can figure this out....but it is going to take some time!

Until I do figure it out, let's just say that M2 money is used to pay both Income Tax and make loans to the government that in sum total is the National Debt.

M2 looks like that narrowly defined door that all other forms of money have to go through as they flow from one place to another.  The "real" money form that "far money" "unreal" money "funny money in any form other than M2 money that people can be convinced is money in the broadest of terms because it has some connection to being converted into something (perhaps in many steps of conversion) that will pass through the M2 money door.  The kind of money that pays taxes, pays payroll, pays for food and clothing and all the other things that the medium of exchange can buy.

Among the things that the medium of exchange can buy are "far money" or even "funny money" financial paper.  Financial paper bought with real M2 money in hopes that what was paid for it can eventually be turned back into M2 money in a greater amount than what was initially paid for it.

That is exactly what the government does when it turns the M2 money it receives in Tax into more M2 money than it initially paid for it when it pays off the National Debt loans.  More money went out than came in.  The revolving nature of the National Debt is merely a time buffer between the loan and its repayment.

 Am I getting it???

The big idea here is that money, regardless of how far away from M2 Money anything called by the generic term (little "m") money actually is, its "value" depends on its perceived ability to pass through the narrow door that confers the blessing of M2 money upon it.

Anything can be monetized!

What launched me on this blog entry this morning?

This Link:
Six American families paid no income taxes in 2009 while making on the order of $200 million each

Income Tax is an M2 money payment.  That narrow door through which all things that are far money or so far away from money as labor and materials that can be turned into money or, likewise, financial paper as a raw material far form of money to be turned into M2 money by some form of labor applied to it (or hocus pocus schemes).

The tax form is the vehicle that converts the far money financial paper in a reduction process to taxable income.

Six families went through a far money conversion process (certainly they made enough money to spend on something more than most of us might be able to afford if they made $200 million each.  They went through it so successfully that when it came time to write down the taxable income that would be the portion of that $200 million that would pass through the M2 door payable to the US government IRS called taxable income there was nothing left to pass through that door!

What happened?  How dey do dat???

None of that far money was turned into spendable M2 money?  Somehow it did.  They have cars and houses, each probably having many.  They paid a sales tax I hope.  Somehow all that spendable money was subject to Income Tax but after all the figuring was not taxable.  

I conclude that they spent a lot of M2 money buying financial paper on which there was no sales tax and somehow was used in the process of figuring up the tax return to offset anything that could have made it to the taxable income bottom line on which some M2 money would have to be paid in a specified amount to the government.

Where, if anywhere, did they pay any tax on converting far money financial paper to M2 money that gave them an M2 money starting point of $200 million annual gross earnings that was then somehow figured down to no taxable income liability to paid in M2 dollars.

That is why they are rich, maybe.  They know how to do that.

The choke point is M2 money.  Get a hold on M2 money by definition as serialized unit digital dollars and the structure is created to manage money matters so that we all play on a level playing field.