Where do our taxes go?

Like in the US, your taxes are destroyed by the debt that created the currency the moment they enter the government sector. Destroyed money cannot “fund” anything. This means that new currency must be created for any spending by the government, disconnecting spending and revenue completely. Once that disconnection is understood it becomes obvious that the government can “afford” anything that is potentially available and priced in the currency it can create at will.

The concept of taxation funding the government that is the monopoly creator of the currency is the biggest con in the history of the world, but it is the one most easily perpetuated because it is how our own personal finances and relationship with the currency work. The false assumption that “we” fund our governments is the cornerstone of neoliberalism and the cause of most economic problems, as well as many social issues that plague modern economies. Your government funds you, not the other way around. It only needs you to need its currency to pay your taxes and has no actual need for that currency once it gets it.