Comment by ksherlock

I don't understand your core mechanism. As you've described it, joe taxpayer pays, say, $600 in taxes to the IRS. The IRS gives that money to the federal reserve. The federal reserve runs their money printer and gives $2,700 back to joe taxpayer and $2,700 to the treasury. That's just inflation with extra steps. It would be interesting to see people clamoring to pay -more- taxes though.