[netman21]

I was thinking about this very idea. The Federal Reserve introduces a crypto currency that is centrally controlled and replaces the dollar (over time). Next, income taxes and State sales tax are eliminated and the revenue is replaced with a transaction fee. The beuatiful thing would be that this would give the Federal Reserve a real control over the economy. Things heating up? twist a knob and increase the transaction fee. Recession on the horizon? Twist it the other way and reduce the transaction fee. So, I looked into what transaction percentage would be required to replace current government receipts. Well, the US takes in $10 Trillion a year. Since GDP is only $15 Trillion the whole idea blows up. A 66% transaction fee just won't work. (I know that GDP is not the same as Total of All Transactions. Is it velocity x GDP?)

[ceejayoz]

> Well, the US takes in $10 Trillion a year.

No, it doesn't. Federal revenue runs about 2.5-3.0 trillion.

[wirelessest]

I think current tax receipts are 2.5 trillion, so this is a bit more manageable.

[notdrunkatall]

>The beuatiful thing would be that this would give the Federal Reserve a real control over the economy.

Though such a system would certainly give the FED more control over the economy, I don't know how beautiful that would be.