this post was submitted on 02 Feb 2025
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[–] [email protected] 17 points 1 week ago* (last edited 1 week ago) (8 children)

At the federal level taxes aren't used to pay debt, they're used to reduce the money supply. That money goes into a shredder, and is functionally unrelated to the money printed.

[–] [email protected] 8 points 1 week ago (6 children)

This seems very odd... Can you give me a source on that? Both the shredding of federal tax income and the relation to public expenditure? It appears I have much to learn

[–] [email protected] 7 points 1 week ago (5 children)
[–] Robomekk 2 points 1 week ago

Surely, if printing money (theoretically) causes inflation; and if collecting taxes reduces inflation, then the two are somewhat closely related.

If the amount of money that can be created by the government is somewhat limited, then surely tax money is another valid source for that money.

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