this post was submitted on 04 Nov 2023
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A Boring Dystopia
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Accurate except for the “instead” part. Road maintenance comes from local taxes, whereas military aid comes from federal taxes.
Well if you really want to get technical about it.... No programs or spending are really funded by taxes anyway, the government just says "OK" and the numbers in the bank accounts of the companies implementing said program go up. Taxes funding things is just a myth. Taxes just delete money. So technically, nothing is funded by taxes and taxes are just a money void.
Edit: People seem to be down voting because they think this is tinfoil hat BS or something. It's not. Look up modern monetary theory. Governments with fiat currency don't need to collect money to pay for things. They just invent and issue more currency. See this video: https://youtu.be/75udjh6hkOs?si=dVpp9V5f96kLDV4-&t=1628
That has real sovcit vibes.
Not at all. Look up MMT. Modern monetary theory and economics are well beyond "spend taxes to fund programs". Governments that issue debts in their own made up currency don't need to "spend" money, they just give money to the programs they support.
You are aware of the fact that central banks are usually independant institutions and whenever the government meddles with them, that countries currency gets fucked by the market?
Also in todays interconnected financial and real economy there is only so much control any government canexert iver its currency, because the currencies values is significantly determined by the exchange from imported and exported goods.
While both points are true, that still doesn't change whether taxes fund these programs.
Sure there are other complexities like "how much is too much? Can we just keep doing it forever?" but those questions have more to do with the labor force of said country and their exports, and almost nothing to do with their tax rates.
The central banks control the amount of money based on the tasks they were given for their operation. That does not relate directly to the way the government is spending or taking money.
It is simply not the governments taxes and spending that is making or deleting money. It is the system of how the private banks can borrow or deposit money at the central bank with a certain interest rate,that is making or deleting money.
And youll have noticed that it is not the central bank granting loans to the government but bonds being sold on the market for the government to take debt.