To your credit, this is a relatively coherent statement of this line of argument (“USD is valuable due to artificial demand from tax collection”). Unfortunately

To your credit, this is a relatively coherent statement of this line of argument (“USD is valuable due to artificial demand from tax collection”). Unfortunately it doesn’t really hold up to careful scrutiny. If the only demand for the dollar were to fulfill tax obligations, there would be a massive surfeit of dollars. Price is not linear in demand. Most of the dollar’s value is due to monetization, not a just-so story about wha it’s useful for. This is true for any and every kind of money. There is actually a coherent way in which the dollar is backed by guns, but it’s the enforcement of the petrodollar system - nothing to do with taxes.