• AngryCommieKender@lemmy.world
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    9 months ago

    At the federal level, taxes don’t pay for anything. They literally used to be burned when we still collected actual dollars. These days a number in a digital ledger gets set to 0. Taxes are the primary anti-inflationary device that government has to maintain inflation.

    Deficits don’t cause inflation, if they did Japan would be in hyper-inflation because of the massive deficits they have been running for 30 years. Instead they are barely able to hold off deflation of the Yen.