A simple question.

[Dovahkiin]

What makes you think taxes "remove money from entering the economy." I think you worded your post wrong. Do you mean "taxes remove money from the economy?' I believe I've explained this already. Federal tax revenue Is destroyed. The government doesn't use revenue to "pay people" it simply adds numbers to an account.

Wait a minute. You are saying they take my virtual money I use to pay taxes and destroy it? I missed your explanation on this concept. Where is it?

They literally subtract the numbers. Federal taxes don't serve a real operational purpose, federal expenditures are fiat. Now, states are a different story, since they can't create dollars from thin air
The government "receives" your taxes and that's the end of the tax receipt.

They satisfy "tax obligations" imposed by the sovereign and that's pretty much it.

Ok. Thats a little more clear. The federal reserve just "prints" the money the federal government needs. Youre saying there really is no need to pay taxes to the federal government right?

Well we do need to pay taxes so we have a reason to use the US dollar and not go to some other currency. Taxes also can be used to reduce aggregate demand and inflation. Taxes can also remove money if needed.

That makes sense when you think about it like that. Too many people still believe or act as if we are on the gold standard.

That's the reality. Virtually every politician and economist acts like we're on the gold standard.. Oh god, don't get me started on the "debt ceiling" hysteria.

 

[Asclepias]

I'm a little foggy on how taxes remove money from entering the economy since it goes to pay people for services rendered to government projects via government contracts etc. Do you mean the physical dollar or the computer dollar? The reason I ask is because your question never mentioned money. It said "funding".

What makes you think taxes "remove money from entering the economy." I think you worded your post wrong. Do you mean "taxes remove money from the economy?' I believe I've explained this already. Federal tax revenue Is destroyed. The government doesn't use revenue to "pay people" it simply adds numbers to an account.

Wait a minute. You are saying they take my virtual money I use to pay taxes and destroy it? I missed your explanation on this concept. Where is it?

They literally subtract the numbers. Federal taxes don't serve a real operational purpose, federal expenditures are fiat. Now, states are a different story, since they can't create dollars from thin air
The government "receives" your taxes and that's the end of the tax receipt.

They satisfy "tax obligations" imposed by the sovereign and that's pretty much it.

Ok. Thats a little more clear. The federal reserve just "prints" the money the federal government needs. Youre saying there really is no need to pay taxes to the federal government right?

Well, I am in favor of lowering taxes to help out working families. We're nowhere near full output, so it's silly that we're screaming about the supposed doomsday that will Come down on us if we run deficits..

Yeah. I dont worry about the deficit because everything is credit based. All the deficit is a credit card bill that can be payed off by the feds getting money from the federal reserve. However, its better to keep the bill going so banks can make money off the interest and create wealth.

 

[Dovahkiin]

What makes you think taxes "remove money from entering the economy." I think you worded your post wrong. Do you mean "taxes remove money from the economy?' I believe I've explained this already. Federal tax revenue Is destroyed. The government doesn't use revenue to "pay people" it simply adds numbers to an account.

Wait a minute. You are saying they take my virtual money I use to pay taxes and destroy it? I missed your explanation on this concept. Where is it?

They literally subtract the numbers. Federal taxes don't serve a real operational purpose, federal expenditures are fiat. Now, states are a different story, since they can't create dollars from thin air
The government "receives" your taxes and that's the end of the tax receipt.

They satisfy "tax obligations" imposed by the sovereign and that's pretty much it.

Ok. Thats a little more clear. The federal reserve just "prints" the money the federal government needs. Youre saying there really is no need to pay taxes to the federal government right?

Well, I am in favor of lowering taxes to help out working families. We're nowhere near full output, so it's silly that we're screaming about the supposed doomsday that will Come down on us if we run deficits..

Yeah. I dont worry about the deficit because everything is credit based. All the deficit is a credit card bill that can be payed off by the feds getting money from the federal reserve. However, its better to keep the bill going so banks can make money off the interest and create wealth.

The deficit directly benefits the private sector and increases growth. Employment, tax cuts, etc.. A surplus is literally dollars being taken from the private sector, causing them to take on debt. (Clinton surplus.. Led to a recession.. Private sector took on unmanageable levels of debt.) I don't like to compare the deficit to credit cards, since the govt directly controls the currency and can simply create more dollars from thin air. Credit card users can't do this. Yeah, the national debt is more like the national savings, all of the dollars that have yet to be taxed away

 

[9aces]

Not sure what this has to do with my post you've quoted.

You are insisting that Federal Taxes are not utilized at all.

Let's look at FICA. FICA doesn't "fund" social security. The dollars are withheld from workers paychecks, the amount paid is recorded on a spreadsheet, and the dollars are destroyed. This spreadsheet? The 'trust fund.' The supposed "warehouse" is nothing more then a bunch of recorded numbers.

But there are NO dollars delivered anywhere.
You are saying that money is printed at the mint and destroyed and kept virtually?
Why have the intermediary printing phase?

Good luck bud. This one's got one of the dumbest ideas about what money is you've ever seen. It's certainly the dumbest I've ever seen.

Something has happened to us over the last couple of years because we're agreeing with each other way too often.

We got older and smarter.

 

[9aces]

Wait a minute. You are saying they take my virtual money I use to pay taxes and destroy it? I missed your explanation on this concept. Where is it?

They literally subtract the numbers. Federal taxes don't serve a real operational purpose, federal expenditures are fiat. Now, states are a different story, since they can't create dollars from thin air
The government "receives" your taxes and that's the end of the tax receipt.

They satisfy "tax obligations" imposed by the sovereign and that's pretty much it.

Ok. Thats a little more clear. The federal reserve just "prints" the money the federal government needs. Youre saying there really is no need to pay taxes to the federal government right?

Well, I am in favor of lowering taxes to help out working families. We're nowhere near full output, so it's silly that we're screaming about the supposed doomsday that will Come down on us if we run deficits..

Yeah. I dont worry about the deficit because everything is credit based. All the deficit is a credit card bill that can be payed off by the feds getting money from the federal reserve. However, its better to keep the bill going so banks can make money off the interest and create wealth.

The deficit directly benefits the private sector and increases growth. Employment, tax cuts, etc.. A surplus is literally dollars being taken from the private sector, causing them to take on debt. (Clinton surplus.. Led to a recession.. Private sector took on unmanageable levels of debt.) I don't like to compare the deficit to credit cards, since the govt directly controls the currency and can simply create more dollars from thin air. Credit card users can't do this. Yeah, the national debt is more like the national savings, all of the dollars that have yet to be taxed away

And here's where the idiocy takes a left off the cliff. A surplus causes no debt in the private sector. Of course the government hasn't actually run a surplus since 1957, despite the creative accounting that proclaims there ever was one during the Clinton, or Nixon years for that matter.

You don't seem to realize what money is. Money is a tool of exchange. The government does not set the worth of a dollar, what it's used to purchase sets it's worth. The dollar is only used as money for so long as people have confidence in it's use as a tool of exchange.

Taxes are a drain on the system, not a benefit to it. Every single dollar taken from the private sector in taxes reduces their profitability, whether the government spends it well or poorly.

The only way your argument makes even a modicum of sense, is if you're declaring that the government has no intention of ever honoring it's debts, and shouldn't even bother paying interest on them. If that's the case, spend whatever you want until no one will take a dollar, because it has no worth. Other forms of currency will become prevalent to exchange goods. There's no need to collect taxes either, as there's no reason to take dollars from the private sector since its worthless in your model.