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Reasons To Tax

According to Richard Murphy in his book The Joy of Tax, there are six reasons to tax:

1) To ratify the value of the currency: this means that by demanding payment of tax in the currency it has to be used for transactions in a jurisdiction.

2) To reclaim the money the government has spent into the economy in fulfilment of its democratic mandate.

3) To redistribute income and wealth.

4) To reprice goods and services.

5) To raise democratic representation - people who pay tax vote.

6) To reorganise the economy i.e., fiscal policy.

Note that tax is not used to fund government spending but is instead used to reclaim the money created as a result of that spending as a mechanism to control inflation


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