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The IRS and Peak Oil

Discussions about the economic and financial ramifications of PEAK OIL

The IRS and Peak Oil

Unread postby Jogger » Fri 14 Jul 2006, 13:33:18

Everyone,

How much trouble will the IRS have in collecting taxes when the oil supply starts dwindling and the economy is hit hard? Will the tax laws be changed?
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Re: The IRS and Peak Oil

Unread postby NTBKtrader » Fri 14 Jul 2006, 13:37:07

I wouldn't be surprised...
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Re: The IRS and Peak Oil

Unread postby Fergus » Fri 14 Jul 2006, 13:41:17

This is something I wondered.

I can not imagine the government just packing up and saying 'ok the worlds over, you dont need us and every man for himself'. But also I cant imagine them being able to assist us in any way thats meaningful. They wont be able to control us without huge amounts of man power and money and places to put us.

This is one question I wonder about the most I think. What form of government will be living under. No government, Maybe feudal lords will pop up and govern a provence. But the days of big government and butting into our business on a daily basis will have to cease or slow down to a crawl. They wont have the energy, resources or man power to maintain the control they have now. Can they?
Last edited by Fergus on Fri 14 Jul 2006, 13:42:23, edited 1 time in total.
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Re: The IRS and Peak Oil

Unread postby KhanCEO » Fri 14 Jul 2006, 13:42:12

67ish million americans don't even file their income taxes. Secondly, the IRS only goes after poor people who can't afford a tax lawyer. Lastly, the IRS is a fraud.

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Re: The IRS and Peak Oil

Unread postby RonMN » Fri 14 Jul 2006, 14:02:12

I've heard that the post-nuke plan for tax collection is a simple 70% sales tax...maybe the IRS would try something like that post-PO.
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Re: The IRS and Peak Oil

Unread postby SoothSayer » Fri 14 Jul 2006, 14:10:20

Just give 1 in 10 of your neighbours a uniform, a badge and a cheap pistol, a basic salary and within days you will have an "IRS Enforcement Service".

Plenty of people will sell their soul to the devil to protect their families.

They will justify it by saying "We are helping ensure the stability of the country in the face of severe adversity".


BTW the cheap pistol comment is real ... Iraq bought MILLIONS of these for its "secret service" i.e. poxy informants around 1980.

I knew the seller ... he said that the pistols were NOT to be used ... but were a status symbol, just like a badge.
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Re: The IRS and Peak Oil

Unread postby gego » Fri 14 Jul 2006, 14:27:37

You certainly are optimistic to think that the US government will itself survive the chaos from a post peak economic/social/population crash.

Even if the government does still function at all, they will just create their own credit and spend it as they do today to meet the shortfall between what taxes are collected and what is spent.

And if the electrical system fails as predicted by Richard Duncan, then what records with the government have of anything?
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Re: The IRS and Peak Oil

Unread postby AZpeaker » Fri 14 Jul 2006, 15:09:30

Okay, this is an interesting topic. This is a scary topic. Government and the tax dollars it spends are an integral part of our survival and organization. Here is the question that scares me about this.

How many people will be instantly out of work and roaming the streets stealing from lifeboat builders when you and I stop paying taxes?
a. All the Bureaucrats sitting in state, local and federal buildings?
b. Answer a plus all the fine folks in the military?
c. Answer a and b plus all the folks who work for companies that depend heavily on government contracts. IBM, Halliburton, Boeing etc.
d. Answer a, b and c plus all the farmers who will no longer be able to weather a drought becuase subsidies are no longer available.

What percentage of the population is answer d. These are the roaming bands of thieves we will encounter when TSHTF.
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Re: The IRS and Peak Oil

Unread postby nth » Fri 14 Jul 2006, 16:02:06

$this->bbcode_second_pass_quote('Fergus', 'T')his is something I wondered.

I can not imagine the government just packing up and saying 'ok the worlds over, you dont need us and every man for himself'. But also I cant imagine them being able to assist us in any way thats meaningful. They wont be able to control us without huge amounts of man power and money and places to put us.


Huh?
You are describing a state with no energy or very low energy.
PO is not about no more oil. It is about not enough oil. We will always have enough energy to run the military and the government. They get priority over us.
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Re: The IRS and Peak Oil

Unread postby nth » Fri 14 Jul 2006, 16:05:40

$this->bbcode_second_pass_quote('gego', 'Y')ou certainly are optimistic to think that the US government will itself survive the chaos from a post peak economic/social/population crash.


Wow.
The government will not be what it is today, but it sure will be there. Just look at world war 2 and great depression for examples on what happens when economy crashes or when things are ration due to limited availability.
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Re: The IRS and Peak Oil

Unread postby SoothSayer » Fri 14 Jul 2006, 16:11:14

$this->bbcode_second_pass_quote('nth', '')$this->bbcode_second_pass_quote('Fergus', 'T')his is something I wondered.

I can not imagine the government just packing up and saying 'ok the worlds over, you dont need us and every man for himself'. But also I cant imagine them being able to assist us in any way thats meaningful. They wont be able to control us without huge amounts of man power and money and places to put us.


Huh?
You are describing a state with no energy or very low energy.
PO is not about no more oil. It is about not enough oil. We will always have enough energy to run the military and the government. They get priority over us.


They get priority over us

Yep, that's going to be the BIG problem ... they'll want to keep their goodies, and will be prepared to use force to do so. It will of course all be for the public good.

I envisage a world of informers, black markets, restrictions, bullying, poverty, petty officials, corruption and wicked laws.
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Re: The IRS and Peak Oil

Unread postby Fergus » Fri 14 Jul 2006, 16:21:22

$this->bbcode_second_pass_quote('nth', '')$this->bbcode_second_pass_quote('Fergus', 'T')his is something I wondered.

I can not imagine the government just packing up and saying 'ok the worlds over, you dont need us and every man for himself'. But also I cant imagine them being able to assist us in any way thats meaningful. They wont be able to control us without huge amounts of man power and money and places to put us.


Huh?
You are describing a state with no energy or very low energy.
PO is not about no more oil. It is about not enough oil. We will always have enough energy to run the military and the government. They get priority over us.


I am talking about when we reach the point where cars line the freeway where they ran out of gas for the final time. You have to open your windows to cool your house cause you got no tricity. Theres no credit bureaus, no CIA files on anyone. No rocket shots to the moon, and the moon becomes just another far away place that we have no hope of ever reaching. You have no job cause no one needs a Financail advisor or attorney anymore, or a grocery store bag boy cause there are no more grocery stores.

Essentially turning the clock back to anywhere from the 1800's to the 1400's. Take your pick. But this is what I am imagining. We will revert to what we knew before. Small social clans and villages growing up to be small cities, never to be able to support even 500,000 again.

If theres still a federal government, I can not imagine it having any direct power on its citizens. As they too would be isolated in Washington DC. More like a city state system or even fuedal lords and vassels. If you have a skill that does not require gas or electricity you are good, if not, you are a laborer.

Maybe this is too far thinking, but one day we will wake up and New york will be a 4 week journey from Texas and Europes a 2 months sail-boat ride. One day it will come down to returning to the basics, unless a new (or old) technology comes along and saves the day, and mankind does not totally kill off our species.
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Re: The IRS and Peak Oil

Unread postby gego » Fri 14 Jul 2006, 17:02:43

$this->bbcode_second_pass_quote('nth', '
')
Wow.
The government will not be what it is today, but it sure will be there. Just look at world war 2 and great depression for examples on what happens when economy crashes or when things are ration due to limited availability.


The movement in a post peak world will of necessity be toward smaller organization. Just as the USSR went out of existence so will the USA. More localized government will unfortunately move into the power void. My hope is that such government will be small and more under control of people. My fear is that war lord types will step into the power void.

There have always been and will always be a surplus of thugs willing to take by force what they cannot earn by work. Couple this with a world full of people conditioned into thinking that government rule, as opposed to freedom, is the way things are supposed to be, and, yes, there will always be government.
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Re: The IRS and Peak Oil

Unread postby Jack » Fri 14 Jul 2006, 17:03:41

$this->bbcode_second_pass_quote('Jogger', 'E')veryone,

How much trouble will the IRS have in collecting taxes when the oil supply starts dwindling and the economy is hit hard? Will the tax laws be changed?


I suspect there are two problems here.

First problem: No economic activity (or very little) implies no income - hence, no income tax.

Second problem: Collection tactics will work against those who have something. What do you do with the newly homeless family pushing around a shopping cart filled with used clothes and moldy "food"? Even putting them in a work camp is unlikely to generate a net revenue gain.

Third problem: The present system - and a sales tax system too - depends on voluntary compliance. The occassional scare stories from the IRS are to encourage voluntary compliance. :twisted: In a post-peak world, we're likely to see more of the underground economy. Everything will be done for cash or with barter. Granted, we can make 10% of the population an IRS enforcement agent - but how many of them will be corruptable? How many might look the other way for a small "gift"? And how long will they continue to work after the paychecks cease to come?

That's why I suspect an increasing deficit with consequent increases of inflation.
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Re: The IRS and Peak Oil

Unread postby Kingcoal » Fri 14 Jul 2006, 19:30:48

In a doomer scenario you'll see a return to peasantry. Most people would be worthless and have nothing to offer but their servitude. This is England, circa 1400 and it could be the USA circa 2050. In this system, the starving wretch kneels before the landlord (government) and swears an oath of fealty. From that point forward, the government literally owns the peasant, who has sworn away all his rights. This peasant is now useful for doing extremely hard physical labor in return for some food, shelter and protection from bandits, thieves, etc. If the peasant gets out of line, he can be flogged, imprisoned, etc, without trial.

The tax paid by the peasant is his/her own self. No need to tax the peasant as he really owns nothing, everything including his ass belongs to the government.
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Re: The IRS and Peak Oil

Unread postby paoniapbud » Fri 14 Jul 2006, 20:54:58

The way our country is armed to the gills I highly doubt a peasant/lord situation. I'm about as bleeding liberal save the whales as you can get, but guess what? I own guns and know how to use them. When the Gestapo squads come I will be waiting for them! HA!

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Re: The IRS and Peak Oil

Unread postby Daculling » Fri 14 Jul 2006, 22:04:29

The way I see it the concept of State will return. It already has in terms of immigration. Look around, there are states and local communities now passing legislation concerning illegal immigration. They have realized that the fed will do nothing in their interest and have taken charge. Will this eventually extend to energy? Security? Will the fed just say... OK you take care of it or will there be a conflict? (Starts in the courts BTW) I don't know. I agree with the previous poster though... too armed for feudalism.
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