Keith Evans
2 min readJun 16, 2022

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No. I said that those "federal" taxes can only reduce the national debt, which is our net money supply in the private sector represented by Treasury bonds. Anyone who isn't a currency issuer functions as you believe they do and rely on taxes and fees for revenue. The federal government is unique because it issues the currency everyone uses on-demand and can never run out of it. There is no "infinite+1" that makes the currency issuer better enabled to create currency because it got some of its previously created currency back.

If you can figure out how to make taxes serve a dual purpose by also funding spending after that, you can solve a lot of problems for us. However, that is not how our federal system of sectoral balances works. Whenever a net monetary asset and a debt exist in an accounting sector they balance each other out. Public debt can only exist in the government sector as a tracking entity for money created in another sector. When it comes back as payment/revenue it has served its purpose as a tax credit, which is what our money is from the perspective of the issuing government, and deleted. All new spending is with new money created in the private sector.

If you pay your federal taxes in cash that cash is accounted for and then destroyed. It is more efficient to destroy cash and reprint the bills as they are needed than it is to track it and move it around. The colonies had "money burning" events where their paper money was burned in view of everyone to prove that it was being destroyed.

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Keith Evans
Keith Evans

Written by Keith Evans

Meandering to a different drummer.

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