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Not really, if there was no tax there would be no money. The most succinct way that I have found to express the relationship between taxation and spending is t
by dools 2y ago
Not really, if there was no tax there would be no money.
The most succinct way that I have found to express the relationship between taxation and spending is that spending at the federal level is constrained by aggregate spending this year, not tax receipts last year.
- exe34 2y agospending is constrained by whatever Congress says it is. the difference is borrowed.
- dools 2y agoIt's logically impossible for a government to borrow the currency it issues. What we refer to as borrowing is just swapping one government liability (reserve balances) for another (treasury bonds).
- exe34 2y agoyou don't borrow from the present, you borrow from the future and hope to pay it back with growth