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Some argue that's how taxes work already. Taxation destroys money, government spending creates money. MMT (modern monetary theory) argues that taxation isn't a
by xnorswap 2y ago
Some argue that's how taxes work already. Taxation destroys money, government spending creates money.
MMT (modern monetary theory) argues that taxation isn't about "funding", it's actually about controlling inflation.
MMT is somewhat controversial.
- ryandrake 2y agoTotally agree, but only if those taxes go to the entity that creates the money. From the federal government's point of view, who prints money, there is zero difference between collecting money and throwing it in a furnace. Both do the same thing. Money is just a piece of paper that says "the government owes you a debt of one buck". So if it is returned to them, they no longer owe it to you, and if it gets destroyed, the same thing is true. But if those taxes go to the State of California, it's different. They don't print money, so it becomes a real debt to them. Destroying it in that case would cancel that debt and free the debtor (the Treasury) from that obligation.