The Relationship Between Not Collecting Taxes and Inflation
Executive Summary
- Taxes are only necessary for creating a demand for money and in reducing excess purchasing power (the driver of inflation)
Introduction
The reason for collecting taxes is not to fund government expenditures but to reduce buying power and control inflation. This is explained in the following quotation.
“Political attempts to strangle the taxing capabilities of the US government are one of the fastest ways to destabilize the economy. High inflation and weak governments go hand in hand. Greece, Brazil, Argentina, Venezuela – all had or have weak governments that cannot efficiently levy and collect taxes, all are beset by corruption, and all cannot offer citizens the most basic of public services” – ContrahourÂ
Source: Contrahour