User: Thomm8

Re:I think the problem is...

On: Employee Stock Options?

Speaking of taxes (as per the election where everyone kept saying that they were not going to raise taxes to pay for everything) - think of this: Every time the feds print more money it is an invisible tax upon you. Because the more money there is in circulation - the less that money in your pocket/bank/whatever is worth. So Mr. Bush doesn't have to raise taxes - he can just print up some more money and ta-da! You have just been taxed! And ya know what? They don't even have to ask Congress for permission to do so.

Actually, I believe that the Federal Reserve prints money (take a look at a bill in your wallet, it's a Federal Reserve Note). Newly created money does function as a tax, called seigniorage, but the decision on how much to print is made by the independent Federal Reserve board, not the President. The idea is that they are isolated from political pressure to raise money as you suggest.