5 ms·
Taxes are not the place where government money comes from, period. Taxes are charges to pull money out of circulation so inflation doesn't fall into a positive
by uoaei 6y ago
Taxes are not the place where government money comes from, period. Taxes are charges to pull money out of circulation so inflation doesn't fall into a positive feedback loop. Taxes have nothing to do with the amount of money that the government can spend at one time. The only thing limiting that is the threat of a sharp devaluation of the currency, and even that is not as big an issue as you might think because countries all over the world are still filling their reserves with dollars.