Where does the government get its money?

Posted on 15 March 2009

I cannot even believe I am writing this post but recently, polls and even some local man on the street coverage has made me rethink whether or not this is a valid post. The main driver that took me over the edge was a radio station in New York Friday had a “man on the street segment”. They were asking about where the government gets the money.

One respondent said, “I know the government gets money from taxes. But they also should spend some of their own money”. I found this answer unbelievable. So I thought that it would be worthwhile to review where the government gets it money.

Rules for Government Funds:

1. The government can tax citizens for funds
2. The government can tax business for funds
3. The government can borrow…against funds they tax on citizens and business
4. The government has no other source of funds EXCEPT to just print money-which as a policy must be backed by…..taxpayers.

So you see, the government has no money “OF ITS OWN”. It only has your money. And if you think it is any different, you are either naive or ignorant. Either one is unacceptable in today’s economic situation.

If this post has made you angry and you want to know why, please send me a private note. There is nothing here that should upset anyone and if you are upset, you need some asisstance understanding of the economics and we are perfectly happy to accomodate you.

Category: New Jersey Taxes, economics, federal tax

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Where does the government get its money?

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