I was wondering why the government has to deduct taxes from us. Why can’t they set aside what they need to begin with? I think I don’t have an idea of how money truly moves…
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According to how I see it, money (currency) has no value. When the government prints money, if it just keeps how much it needs, that money is of no value. If the government spends that money, all it’s going to do is give people more money to buy the same amount of things that is available in the country (market).
Because that oney was just printed and not earned, no wealth was created with that money. So there is nothing new in the market because of that money. Essentially, the total worth of things in the market remains same but the government just introduced more money by spending “printed money”.
Now, there’s more money to buy the same amount of goods, which means each of those goods now costs more money. So inflation!
The value to the money comes from what it can buy and also based on what was exchanged for it. In the case of income taxes, the government is taking a part of your money. But actually it is taking a share of your work.
It is your work that was exchanged for that money. Your work is what gives the money it’s value. So when the government takes its share, it’s actually taking your work, just not literally.
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