This is wrong. Every country has taxes, but some money is more valuable than others. Argentina's currency devalued even though they raised their tax rates. When

This is wrong. Every country has taxes, but some money is more valuable than others. Argentina's currency devalued even though they raised their tax rates. When McDonald's agrees to sell their Big Mac for $5, they're backing the US dollar. When you agree to work 40 hours a week for a predetermined salary in dollars, you're backing the US dollar. It's the same when you pay for taxes, but it's not different from the previous examples.