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Well, any Federal funds are categorically not tax payer funds. The Federal government spends money into existence as it is a currency issuer (through the Federa

Well, any Federal funds are categorically not tax payer funds. The Federal government spends money into existence as it is a currency issuer (through the Federal Reserve).

NovemberWhiskey 5y ago
Wait, what? No; that's not how that works at all. Where did you read that? The shortfall between Federal government spending and tax receipts is the deficit. The government has to borrow that money, which it does by having the Treasury issue debt securities.
- nl 5y ago
  This is correct. I attempt to provide references here: https://news.ycombinator.com/item?id=27685631 https://news.ycombinator.com/item?id=27685631 Not sure where these claims come from either.
- selimnairb 5y ago
  Federal government deficit=private sector surplus. The money is conserved. Federal surplus=private sector surplus. People who want to balance the federal budget either don’t know what they are talking about, or are cynically trying to redistribute money to the wealthy.
starik36 5y ago
Wonderful. Than I suggest that we cancel all taxes and just use the printed money to fund everything.
treis 5y ago
Then what the hell are they doing with all the money I send them?
- triceratops 5y ago
  Taxing your money away is a means of fighting inflation. Taxes and tax breaks also shape behavior. Sugary beverage taxes, tobacco taxes, mortgage interest deductions.
  - selimnairb 5y ago
    Federal taxes also legitimize the currency by providing stable demand for the currency.
- irrational 5y ago
  Hopefully helping our poor and needy.
- bawana 5y ago
  Lining their pockets.
nl 5y ago
This is (mostly) untrue. US Federal Taxes go to the Treasury[1][2], which then spends it on Federal government programs. If spending is more than receipts, the US Federal Reserve issues securities (ie, sells bonds) to raise money[3]. Quantitative Easing by the Federal Reserve does cause money to "appear", but this is different to the general process for funding federal government programs[4] (Note that the money can disappear if/when the Reserve chooses to resell those assets). [1] https://fiscaldata.treasury.gov/datasets/monthly-treasury-statement/summary-of-receipts-outlays-and-the-deficit-surplus-of-the-u-s-government https://fiscaldata.treasury.gov/datasets/monthly-treasury-st... [2] https://www.reuters.com/article/us-usa-trump-taxes-revenue-explainer-idUSKBN26J30F https://www.reuters.com/article/us-usa-trump-taxes-revenue-e... ("Of the $3.46 trillion in receipts taken in by the U.S. Treasury during fiscal 2019") [3] https://www.stlouisfed.org/open-vault/2019/november/where-federal-revenue-comes-from-how-spent https://www.stlouisfed.org/open-vault/2019/november/where-fe... [4] https://www.forbes.com/advisor/investing/quantitative-easing-qe/ https://www.forbes.com/advisor/investing/quantitative-easing...

Well, any Federal funds are categorically not tax payer funds. The Federal government spends money into existence as it is a currency issuer (through the Federal Reserve).

NovemberWhiskey 5y ago

Wait, what? No; that's not how that works at all. Where did you read that? The shortfall between Federal government spending and tax receipts is the deficit. The government has to borrow that money, which it does by having the Treasury issue debt securities.

nl 5y ago
This is correct. I attempt to provide references here: https://news.ycombinator.com/item?id=27685631 https://news.ycombinator.com/item?id=27685631 Not sure where these claims come from either.
selimnairb 5y ago
Federal government deficit=private sector surplus. The money is conserved. Federal surplus=private sector surplus. People who want to balance the federal budget either don’t know what they are talking about, or are cynically trying to redistribute money to the wealthy.

starik36 5y ago

Wonderful. Than I suggest that we cancel all taxes and just use the printed money to fund everything.

treis 5y ago

Then what the hell are they doing with all the money I send them?

triceratops 5y ago
Taxing your money away is a means of fighting inflation. Taxes and tax breaks also shape behavior. Sugary beverage taxes, tobacco taxes, mortgage interest deductions.
- selimnairb 5y ago
  Federal taxes also legitimize the currency by providing stable demand for the currency.
irrational 5y ago
Hopefully helping our poor and needy.
bawana 5y ago
Lining their pockets.

nl 5y ago

This is (mostly) untrue. US Federal Taxes go to the Treasury[1][2], which then spends it on Federal government programs. If spending is more than receipts, the US Federal Reserve issues securities (ie, sells bonds) to raise money[3]. Quantitative Easing by the Federal Reserve does cause money to "appear", but this is different to the general process for funding federal government programs[4] (Note that the money can disappear if/when the Reserve chooses to resell those assets). [1] https://fiscaldata.treasury.gov/datasets/monthly-treasury-statement/summary-of-receipts-outlays-and-the-deficit-surplus-of-the-u-s-government https://fiscaldata.treasury.gov/datasets/monthly-treasury-st... [2] https://www.reuters.com/article/us-usa-trump-taxes-revenue-explainer-idUSKBN26J30F https://www.reuters.com/article/us-usa-trump-taxes-revenue-e... ("Of the $3.46 trillion in receipts taken in by the U.S. Treasury during fiscal 2019") [3] https://www.stlouisfed.org/open-vault/2019/november/where-federal-revenue-comes-from-how-spent https://www.stlouisfed.org/open-vault/2019/november/where-fe... [4] https://www.forbes.com/advisor/investing/quantitative-easing-qe/ https://www.forbes.com/advisor/investing/quantitative-easing...