Anonymous asked in Politics & GovernmentGovernment · 8 years ago

Isn't all money taxed back eventually?

If taxes are taken virtually every time a dollar is used to purchase goods or services is it not completely

taxed back in just a few turnovers? I don't think there is any route a dollar can take that it is not gone to taxes in under 10 turnovers. If I am right why do we have income tax if they get it all back anyway?

If I'm wrong could someone explain the route a dollar could take (realistically) to disprove my theory.


When answering please remember that no matter how or where you send your money it will be spent again. That goes for illegal activities as well drugs or hookers included. Even money sent overseas comes back or it has no value. Still think I'm wrong?

3 Answers

  • Anonymous
    8 years ago
    Best Answer

    why don't you call the big boys at the internal revenue service on this one. you might find somebody there who actually knows what goes on. i doubt it thou.

  • 8 years ago

    There is a cycle the dollar goes through. Yes, it is true that after several buying and selling the dollar will diminish from the private citizens to the government through the sales tax, but the government also spends that money by a contract with an individual or a group of individuals. Those individuals then have that money and spend it as they wish, and the cycle starts again.

  • Anonymous
    8 years ago

    If I spend all my money on drugs and hookers, which would provide both goods and services, your theory is shot to pieces and I'm having one hell of a time.

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