Reply to post: Re: Wanting without paying

US states accused of skimming cash from 911 emergency call dosh

Rattus Rattus

Re: Wanting without paying

"Every tax payer wants certain services to exist and wants them paid for by the other tax payers"

On a national level, with a sovereign currency, that's not really how tax works. Tax isn't raised to pay for government spending although it's often framed that way, the government owns the currency and mints and can spend as much as they like. Government spends money into existence. Tax is a mechanism to remove money from circulation so spending new money into existence doesn't cause too much inflation. This is why a government budget is not like a business or household budget and should not be managed like one.

Non-sovereign governments, however, such as states and cities, do have to raise the money they spend in one way or another. This includes taxes, fines, fees, duties, and direct grants from the national government.

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