Taxes don’t pay for anything at the federal level. They are deleted. We used to literally burn them back when we collected physical money. We can afford both our current military spending, and every single progressive policy that AOC or Bernie can dream up just fine. (Not saying we should, just that we can. I think we should scale back on certain aspects of the military, but that’s a whole other discussion) The government just “prints” more money and deposits it in the appropriate accounts via the Federal Reserve. Taxes are merely an anti-inflationary device to ensure that inflation stays stable. Running deficits doesn’t cause inflation. If it did, Japan would have been thoroughly fucked in the last 30 years of running the highest deficit by percentage of any country in the world. In reality they are running the largest deficit economy, and barely fighting off deflation.
Edit: this only applies to a sovereign fiat currency.
Taxes don’t pay for anything at the federal level. They are deleted. We used to literally burn them back when we collected physical money. We can afford both our current military spending, and every single progressive policy that AOC or Bernie can dream up just fine. (Not saying we should, just that we can. I think we should scale back on certain aspects of the military, but that’s a whole other discussion) The government just “prints” more money and deposits it in the appropriate accounts via the Federal Reserve. Taxes are merely an anti-inflationary device to ensure that inflation stays stable. Running deficits doesn’t cause inflation. If it did, Japan would have been thoroughly fucked in the last 30 years of running the highest deficit by percentage of any country in the world. In reality they are running the largest deficit economy, and barely fighting off deflation.
Edit: this only applies to a sovereign fiat currency.