Why must taxes be paid?
Why,oh why,must taxes be paid? And why must taxes be collected?
Therein lies the problem.
In our modern societies, the existence of taxes is a given — a trivial matter that we are trapped by as a matter of course — and something that we are no longer even able to question any more.
If money is only needed to cover government spending, then just printing some money should be all right. However, if that were done, it would thrust the economy into inflation in no time at all.
The workings of finances are hidden behind the workings of taxes.
In the first place, there is a mistaken perception of what taxes are.
Today, the first purpose of taxation is to cover administrative costs. The second purpose is the redistribution of income.
And the third of these three points that can be mentioned is the function of adjusting the economy. However, this is only being mentioned because it is a convenient explanation for the reason for collecting taxes. We are not defining the purpose from the workings of taxes.
As mentioned earlier, if it is only a matter of the government needing “money” to cover its administrative costs, then printing some money should take care of things.
If we are saying that the redistribution of income is one of the purposes of taxes, then we need to give a functional explanation of why the redistribution of income is necessary.
Even if we are redistributing income, the reason why redistribution is necessary is only being taken up as a moral issue.
Similarly, although we have referred to taxation’s function of adjusting the economy, it is pointless as long as the what, the why, and the how of the economy being affected by the collection of taxes remain unclear.
Why taxes are being collected is not the problem. Rather, what is important is what is the role of taxes and what are the workings of taxation for the monetary system.
In other words, in order to know the purpose of taxes, it is necessary to clarify the workings of taxes.
But before we do that, the point that you need to check and keep in mind is that taxation is a monetary event.
Taxes are made up on the premise that they are paid with money. This is because taxation is a monetary event.
This point is important in understanding the workings of taxes.
Before taxes were paid with money, the payment of taxes was premised on payment in kind.
The workings of taxation are completely different when taxes are paid in kind rather than with money.
The point that the payment of taxes in kind does not directly affect the monetary system and the point that payment in kind is constrained by the characteristics of what is being used for payment are what makes payment of taxes in kind decisively different from payment with money.
In addition, if taxes are paid in kind, the workings of taxes are only linear and limited to a single specific function. The bidirectional workings of taxes are made possible only when taxes are paid with money.
The monetary system is a mechanism to distribute and recover “money.”
And the taxation system is a part of that monetary system.
If the purpose is only to pay administrative costs, it is not necessary for the government to collect taxes. The only thing the government needs to do is to print currency.
However, once such a thing is done, the monetary value can not be maintained. First, money exerts its workings by circulating. Second, the workings of money are the means of distribution. Third, This is because the monetary value is made up of the amount of money flowing and the supply and demand of both money and goods. Fourth, money can only function in a closed environment. In other words, the total amount of goods distributed in the market and the amount of money flowing are finite. Fifth, since transactions are made on the premise of equivalence, the total sum of the monetary value in the entire market becomes zero.
As a result of having these points as a premise, three-sided equivalence holds.
In other words, finance comprises the institutions for circulating funds. Therefore, taxation is working as a foundation of the system. Taxation will not function if there is no system.
In the case of payment in kind, the tax system does not intervene at all in the workings of the supply and the recovery of funds.
That is a perversion of the workings of taxation today. And, by a line of extension to finances, the workings of finances will also not be visible.
Debt is at the root of this.
The major premise is that a modern economy is driven by the “circulation of money.”
First, the monetary system requires that money be pervasive in society. Second, money needs to be continually distributed according to some criteria to all people. To that end, funds must always be in circulation. Third, the circulation of money must be the force that drives the means of production.
In order to do so, it is necessary to pre-allocate “money” through the lending and borrowing of money between the nation and financial institutions, as well as between companies and between individuals. Using the allocated money, people circulate funds in the market by conducting buying and selling transactions. Taxes are collected to facilitate the circulation of money and to make public investments. This is because, in order to control the market, it is necessary to constrain the amount of money being distributed in the market on a regular basis.
The workings of money are exhibited though buying and selling, and surpluses and shortages of money are adjusted through lending and borrowing.
God is a transcendental being, and God is absolute.
Good and evil are relative.
God is absolute. Hence, there is no good and evil in God.
Good and evil are a human problem.
Humans are judged by their own good and evil.
Humans are the cause of the destruction of the environment and the waging of wars, because these are problems that humans have created.
These are not God’s problems.
Humans will receive their rewards even if they curse God.
But humans must bear the reward of devastation caused by their destruction of the environment and waging of wars, and it will be useless to seek salvation in God.
God forgives those who help themselves.
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