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Why aren't taxes not taken out right when it's created? That would end the moral hazard of tax dodging. You wouldn't have to spend money to stop tax dodgers. The IRS wouldn't need to exist.

Currency is taxed every time it's used. If you think about it, a percentage being taken out every event means the money has a limited life span. Is there a reason for this? Is it really just protection money to the government, is there a mathematical reason I'm missing, or is it something weirder?

Why aren't taxes not taken out right when it's created? That would end the moral hazard of tax dodging. You wouldn't have to spend money to stop tax dodgers. The IRS wouldn't need to exist. Currency is taxed every time it's used. If you think about it, a percentage being taken out every event means the money has a limited life span. Is there a reason for this? Is it really just protection money to the government, is there a mathematical reason I'm missing, or is it something weirder?

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[–] 1 pt (edited )

Trust me, they'd like that. It's the reason there are contract workers and employees, because it's easier to force an employer to withhold taxes than get every employee to. With CBDC purely automated theft will probably become a reality.

Currency is taxed every time it's used. If you think about it, a percentage being taken out every event means the money has a limited life span.

As in, why not just print money they need? Taxation allows fine-grained rewards and punishments. They tax things they want to encourage less, tax things they don't like more. You can't do that without a detailed tax system.

[–] 1 pt

With CBDC purely automated theft will probably become a reality.

Also keep in mind, the value of the CBDC will constantly go down as the criminals constantly create more and more of it, just like they already do.