"In fact, you can actually buy shredded money in Washington, D.C. So if the government throws away your cash after collecting it, how does that cash pay for anything, like Social Security and the rest of the government’s spending? It doesn’t. Can you now see why it makes no sense at all to think that the government has to get money by taxing in order to spend?
For further support we can just listen to Federal Reserve Bank Chairman Ben Bernanke. When asked “Is that tax money that the Fed is spending?” he replied, “ It’s not tax money. The banks have accounts with the Fed, much the same way that you have an account in a commercial bank. So, to lend to a bank, we simply use the computer to mark up the size of the account that they have with the Fed.” Mosler says, “the Chairman of the Federal Reserve Bank is telling us in plain English that they give out money (spend and lend) simply by changing numbers in bank accounts. There is no such thing as having to ‘get’ taxes (or borrow) to make a spreadsheet entry that we call ‘government spending’.”
On the Role of Taxes (MMT)
https://medium.com/@nicholasadiaz7/on-the-role-of-taxes-mmt-707fb4b3b80b#id_token=eyJhbGciOiJSUzI1NiIsImtpZCI6IjFmNDBmMGE4ZWYzZDg4MDk3OGRjODJmMjVjM
"In fact, you can actually buy shredded money in Washington, D.C. So if the government throws away your cash after collecting it, how does that cash pay for anything, like Social Security and the rest of the government’s spending? It doesn’t. Can you now see why it makes no sense at all to think that the government has to get money by taxing in order to spend?
For further support we can just listen to Federal Reserve Bank Chairman Ben Bernanke. When asked “Is that tax money that the Fed is spending?” he replied, “ It’s not tax money. The banks have accounts with the Fed, much the same way that you have an account in a commercial bank. So, to lend to a bank, we simply use the computer to mark up the size of the account that they have with the Fed.” Mosler says, “the Chairman of the Federal Reserve Bank is telling us in plain English that they give out money (spend and lend) simply by changing numbers in bank accounts. There is no such thing as having to ‘get’ taxes (or borrow) to make a spreadsheet entry that we call ‘government spending’.”