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1/ Federal taxation is the destruction of money. This is not an option or a choice, there is no other way for it to be. @StephanieKelton (then Bell) in her 1998 paper, "Can Taxes and Bonds Finance Government Spending?” (levyinstitute.org/pubs/wp244.pdf)
[#LearnMMT THREAD v.1]
[#LearnMMT THREAD v.1]
@StephanieKelton 2/ Federal taxation is the destruction of money. This is not an option or a choice, there is no other way for it to be. Eric Tymoigne (@tymoignee) in his 2014 paper, "Interrelations between the Treasury and the Central Bank” (levyinstitute.org/pubs/wp_788.pdf)
@StephanieKelton @tymoignee 3/ As far as *how* federal taxes are destroyed... It’s no different than how the 100 is destroyed (or disappears or dies) when you minus it on a calculator. To the federal government, money is not real (as it is to me and you), it’s a concept.
4/ The destruction of federal taxes logically extends to mean that all federal spending is financed with created currency.
5/ Which logically extends to mean that federal taxes, although important, do not and cannot pay for anything.
6/ Why federal taxes are important, despite not paying for stuff.
7/7 To #LearnMMT in general, start here.
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