Under MMT, taxes serve a very different purpose. Instead of being used to raise revenues to pay for government spending programs, they function as tools that help politicians manipulate the economy...as weapons to punish those businesses and groups that government does not like, i.e., those pesky “Taxed Enough Already” (Tea Party) activists.
Why is printing money necessary to pay for deficit spending, you ask. Because under MMT, inflation is the warning sign of overspending, not deficits. And the cure is to raise taxes so individuals cut back on spending to make way for government spending. Put another way, under MMT, the government would battle inflation by removing wealth from individuals, including the middle and working classes. Under MMT, taxation is a way to redress decades of “rising inequality of outcomes” (as opposed to “inequality of opportunities”). And deficit spending and associated printing of money is “needed” to wipe out student loan debts, mortgage debts, auto loan debts, and credit card debts of American households.
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