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Friday, August 23, 2019 8:29:10 AM
Instead, the government makes money paying us.
Why? Its called the velocity of money.
https://www.aier.org/article/what-money-velocity-and-why-does-it-matter?gclid=CjwKCAjwnf7qBRAtEiwAseBO_G5ZOsLC8UjvLf9iFtU9B66GqUBBmOYDjHBv2epnW79BzOWI7tX8VRoCdXUQAvD_BwE
In a nutshell, each dollar is spent about 7 times per year on average. Most of the time, that dollar will be taxed. (Exception is when drug dealers get the money and send it overseas)
However, it means that its taxed about 6 times per year. So, at an average tax rate of 20 percent, each billion injected into the economy returns 1.20 billion in revenue for the government.
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