A hard to believe thing in modern times is – and many will not believe it – that every single cent in this world is getting taxed/collected by the government sooner or later.
I always found it pretty funny when people (or “conspiration terrorists”) talk about all that funny stuff like money magically appearing – but they never saw that really easy thing, that gov is getting all your money when circulating in a very short term.
An example: You earn 20 bucks for whatever reason. Now you will pay you tax on this earnings, Let’s say this is 20%, so you paying 4 bucks in tax and you stick with 16 bucks in your pocket – woohoo! No you go ahead and buy some bread and butter stuff for the 16 bucks.
You are now paying local tax (or VAT in europe, lets say 20%), so another ~3 bucks are taxed.
You got that stuff from a small vendor. This vendor now has earned 13 bucks (which is left after deducting VAT). The vendor need to pay his own tax. 3 bucks away.
The vendor now has 10 bucks in his pockets (as you can see, from the 20 bucks you initially earned, there is already only 50% left of that money)
The vendor will than have to pay his electricity bill, which is 10 bucks. There is another VAT involved (2 bucks) and the energy company has to tax the resulting 8 bucks AGAIN.
As you can see, that the same amount of money is taxed over and over again and it is mathematically proofable that 100% of this circulating money will end up at the government.
Ok. Now let’s assume, that someone works illegaly and is not paying his tax. So this person will end up with 20 bucks right in his pocket. But the same guy will than buy bread and butter stuff .. so even that way, it is still 100% of the money ending up being taxed. So actually it just doesn’t matter if you pay your tax or not – it will get taxed any way.
Oh, another example. You just buy a house. To do so, you have to pay tax when purchasing. If you decide to resell the house, the new owner will have to pay the tax again! How funny is that – this is a huge inflation machine 🙂
So I always find it really funny, when people starting to believe in another conspiracy theory about where money comes from and that everything is dept. It acutally is – but in the end all you earn is going to get tax. Even when when the money is fully converted to tax, the same money is still taxed over and over again as long as it circulates – this is a bit paradox, but if you think about it, it’s exactly what’s happening every day.
So governments actually get an unlimited amount of money (because they also throw out the money into circulation again) and still they get bust all the time – funny, isn’t it? 🙂