No, the practice continues because the rich prefer to buy Treasury bonds to paying taxes, because they get paid interest on T-bills and can sell them on the open market if they have liquidity issues, while the only interest they get paid on taxes are little things like courts, police, and prisons to keep the peasants from storming their estates, armies to seize whatever resources their corporate corpus desires, you know, Western civilization. Whereas via the T-bill mechanism, they get to eat their cake and get more cake (interest money) from other people’s taxes. Why wouldn’t they want that sort of deal?
Of course, it’s not a great deal for ordinary taxpayers, because they end up having to bend over and pay interest out the yazoo, but when was our government ever run for the benefit of ordinary taxpayers rather than the rich? Not since the election of Saint Ronnie the Raygun, at least :twisted:.
– Badtux the Snarky Penguin
]]>