Leftists are very fond of noting that the central bank’s banknotes and other actions are backed “by the full faith and credit of the government.” A friend of mine had a misunderstanding with the IRS and received a friendly letter from the IRS summarizing the actions they can take to collect the money the IRS thought was theirs. I found the threats contained in the letter to be instructive.
Here are some snippets:
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We may seize (“levy”) any state tax refund to which you’re entitled.
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If you still have any oustanding balance after we seize (“levy”) your state refund… we may then seize (“levy”) or take possession of your other property or your rights to property. Property includes:
Wages, real estate commissions, and other income
Bank accounts
Business assets
Personal assets (including your car and home)
Social Security benefits
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If you don’t pay the amount due … we can file a Notice of Federal Tax Lien on your property at any time, if we haven’t already done so. [Emphasis mine]
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If the lien is in place, you may find it difficult to sell or borrow against your property. The tax lien would also appear on your credit report - which may harm your credit rating - and your creditors would also be publicly notified that the IRS has priority to seize your property.
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If you don’t pay your tax debt, we have the right to seize (“levy”) your property.
So that’s it right there, folks, that is the full faith and credit of the government. Basically, because the government has unlimited power to seize property and because they stand in line ahead of all other creditors, we’re supposed to believe it has the power to defy the laws of economics. Pretty shaky foundation when you think about it.
Clayton -
P.S. Here’s an example in my local area of the unlimited power of the government to seize property… fortunately, the story has an uncharacteristically happy ending since most of the seized funds had to be returned. Most of the time, the government gets away with seizing everything.