When our regulated banks become the sales tax collector for Congress. They can pay a air bank tax, but a two percent burden on liquidity transfer is way too much for banks to bear. An inflation tax is neutral to the banks, they are not collecting it. Legally, the Senate can implement an inflation tax, but the partition with Fed banking meed be hardened. The inflation tax must be maximum entropy, free to find its way through all pricing systems. It is a general sales tax.
A simple rule like a 2 point inflation tax with 3 point error band, an enforceable contract. Senate approval, the House rep can go to court if the contract is broken. Then Powell and his 2 points are guaranteed, and out of his hands. But the Fed is partitioned off, except for Due Process banking, what can be finer?
The non profit Fed, partitioned under Due Process, no longer remits profits, it has none. So it is no longer tax collector, government applies its own sales tax. For the New Fed, they live in a world with a two point federal sales tax. This is a fair deal if it sticks for 15 years. The key is getting small states and their Senators a bit educated.
Reducing the volatility of contract renewal means tying the contract to revenue sharing which favors Senate, a managers fee. They know a contract fissure results in loss of revenue sharing.
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