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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The government doesn’t have infinite money, it needs to make money somehow just like everyone else (simplified).
The way it makes money is through taxes which people in the country pay.
They don’t have to take them out of the paycheck directly. In fact most taxes, like sales or property tax, are collected differently.
Paycheck deductions just prevent constantly having to go after people who didn’t set aside money for income tax and are broke when taxes are due.
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