@mattcolantonio
Please read the bare minimum about a subject before posting. Here are some of the taxes you might pay that fund the federal government, most notable to this topic might be the income tax, payroll tax and excise tax.
If you're earning at least $44,200 per year, 5.5% of that amount is paid directly to the federal government. At that income level, you individually get a tax rebate but your employer pays 7.8% for you.
@mattcolantonio
Top earners (>$1.4mil) contribute up to 22.3% to the feds in income and payroll taxation.
Additionally, if you buy any gasoline, tobacco or alcohol products, you're also contributing to the federal government via the excise tax.
@joykill @LilahTovMoon
sorry but I didn’t say we don’t pay taxes, I said they don’t fund the federal govt
The taxpayer myth is used by those in power to enforce austerity and discipline the working class.
When the govt spends, it marks up th reserve accounts of banks- it does not need to first find money from taxes. ie, It spends $ in and taxes $ out- not the reverse
how does it make sense for the govt to be dependent on tax $ denominated in US$ that it creates itself?
@mattcolantonio
bro please, just read a little about fiscal policy before commenting on it.
The US government "creates money" the same way you "create money" when you go to the bank for a loan. That loan is debt that has to be repaid through your income, which in the government's case is mostly coming from taxation. Another way is through foreign investment in government bonds, which would be worthless if investors didn't believe in US ability to repay their debts.
@joykill @LilahTovMoon
I guess the Central Bank should read up on fiscal policy too…
I’m not saying anything different than what the govt actually does to spend.
Govt bonds drive up demand for the currency and are safe bc the govt will always pay it back, yes.
The US govt does not spend the same as a household that doesn’t make any sense. In your scenario the govt spends more like the bank, which by issuing a loan (credit) results in deposits in someone else’s account.
@mattcolantonio
I beg of you, please just read up on the funding process before writing any further fanfic.
The only thing the federal bank does is issue debt at the request of congress. Congress can't "create money" whenever they want as too much debt risks raising inflation and causing a huge depression. Which may be what you mean, but doesn't change the fact that that debt still needs to be paid off and you're doing it through the taxes you pay to the government.
Shoshana 🏳️⚧️
Matt
Joykill