Dear Americans, Your Taxes Do Not Fund the Government
This is NOT about politics. Instead, this is about finance and how government works.
Due to the political season, there are a lot of false and misleading claims all over the internet. But the ones that get my attention the most are those who complain about their “tax dollars” going overseas.
First, you need to read this.
Secondly, the government does not make a budget based on how much taxes they generate. If that was the case, things would be more straightforward.
Your taxes are used to pay back a loan (with the interest). Let me say that again for those who are just scrolling…
Dear Americans, your taxes do not fund the government — they are used to pay back government debt (plus interest)
The government borrows money to do whatever it wants to do. The US government borrows money (mostly) from the Federal Reserve.
Mind you, the Federal Reserve doesn’t have money. They create money by policy. They have the legal power to credit anyone by any amount. And they mostly do this for US banks, the US military-industrial complex, and the US government.
