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What do you think governments do with the dollars they acquire through taxation?



The government doesn't need to tax you to get dollars to spend. They are the source of your dollars, they can will as many dollars into existence as they wish, subject to self-imposed limitations. Where do you think dollars come from? Why would an entity with an infinite supply of dollars need your dollars?

The purpose of taxation isn't to fund government operations, its to maintain demand for dollars.

https://en.wikipedia.org/wiki/Sectoral_balances


> The purpose of taxation isn't to fund government operations, its to maintain demand for dollars.

Yes, taxation is one of the ways to create demand for an otherwise worthless fiat currency. So are legal tender laws. This still does not explain your assertion that the government destroys dollars through taxation.


You didn’t answer the clear and direct question I asked.




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