Re:Why only 2% of Chinese pay any income tax
by mempko on Monday December 03, 2018 @09:52AM
(#18589179)
All sovereign governments which have their own fiat currency finance themselves by simply spending money into existence, including the USA. The purpose of taxes isn't to finance directly but to provide a demand for the money (I need dollars because I have to pay taxes) but also discourage/encourage certain behaviors. This idea that taxes are directly used to pay for things is completely wrong (except for the case where the government doesn't have it's own money, like in the EU).
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