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The purpose of taxation in Fiat monetary system has nothing to do with funding. This is a common misconception. Any funds that are required, can be simply printed. Unlike a monetary system that is based on intrinsically valued money, fiat system never has any shortage of money, by definition.
I know, that in millions upon millions of articles, and "pedias", funding is always given as a main reason.
The true reason for taxation in fiat monetary system, is to force everyone to use the fiat money. This is why one can not pay his taxes in gold or silver, even though gold is hoarded by central banks around the world. Taxes are only accepted in the fiat of the issuance of the taxing authority. By doing so, the tax payer has no choice but to acquire required amount of fiat money, thus creating a demand for that particular kind of fiat.
If there was no taxation, nobody would use fiat money. And on the other hand, if tax was accepted only in worn underwear (for instance), then that worn underwear would become the money in circulation.
Without heavy taxation, the people would use something that has an intrinsic value as money, and not fiat. This is because by using fiat, one constantly loses his purchasing power, as compared to using say, gold as money.
To underscore, the real purpose of taxation in fiat monetary system is to force the people to use the kind of money that is less suitable to be used as money, namely fiat paper notes of central bank. Everything else is simply a misdirection.
What else can I help you with?
What is the purpose of the income tax brackets?
Income tax brackets enable the progressive taxation of income.
What is the purpose of income tax brackets Apex?
To enable the progressive taxation of income.
What's the purpose of income tax brackets?
To enable the progressive taxation of income
Limitations on the power of taxation?
The 1987 Philippine Constitution sets limitations on the exercise of the power to tax. The rule of taxation shall be uniform and equitable. The Congress shall evolve a progressive system of taxation. All money collected on any tax levied for a special purpose shall be treated as a special fund and paid out for such purpose only. If the purpose for which a special fund was created has been fulfilled or abandoned, the balance, if any, shall be transferred to the general funds of the Government. The 1987 Philippine Constitution sets limitations on the exercise of the power to tax. The rule of taxation shall be uniform and equitable. The Congress shall evolve a progressive system of taxation. All money collected on any tax levied for a special purpose shall be treated as a special fund and paid out for such purpose only. If the purpose for which a special fund was created has been fulfilled or abandoned, the balance, if any, shall be transferred to the general funds of the Government. The 1987 Philippine Constitution sets limitations on the exercise of the power to tax. The rule of taxation shall be uniform and equitable. The Congress shall evolve a progressive system of taxation. All money collected on any tax levied for a special purpose shall be treated as a special fund and paid out for such purpose only. If the purpose for which a special fund was created has been fulfilled or abandoned, the balance, if any, shall be transferred to the general funds of the Government.
What is an explanation of the purpose of taxation?
The primary purpose of taxation is to raise money for the government. Some taxes also discourage certain behaviors such as smoking and drinking ( the so-called sin taxes ) and redistribute wealth, taxes such as the graduated income tax and inheritance tax. Protective tariffs protect domestic industries from foreign competition.
What is the primary purpose of taxation?
The purpose of taxation in general is for the government to raise money.
What are the inherent limitations of taxation?
The following are the inherent limitations on the power of taxation: Taxes may be levied only for PUBLIC PURPOSE. The power to tax, being essentially LEGISLATIVE, cannot be delegated. The power to tax is limited to the State's TERRITORIAL JURISDICTION. INTERNATIONAL COMITY.
Which tax leads to double taxation?
corporate tax
What is the purpose of income tax in the Philippines?
The main purpose of our government in imposing taxes is to raise fund enable for them to work, because taxation is the strongest power of the government and therefore, it is highly needed by them.
What is a tax cut?
A tax cut is the act of reducing taxation.
What is the difference between global and territorial system of taxation?
global tax mean there is double taxation, but at territorial there is one tax only
What is the purpose of IRS Form 8606 for the tax year 2013?
The purpose of IRS Form 8606 for the tax year 2013 is to report non-deductible contributions made to traditional IRAs and to track the basis in these accounts to avoid double taxation when withdrawing funds in the future.
