How does taxation cause inflation?
Since money is created by the government, the only way that people can get money is for the government to have first spent it. Unfortunately, the more the government spends, the more it must tax the people, too. It sets off a vicious circle. Another way to look at is the government owns the only chicken, yet the people are expected to pay taxes with eggs. This is impossible. The people can only pay with eggs that the government first distributed. As a result of this illogical system, the government is always in debt, so it is constantly taxing more, which just makes the problem worse. Money should exist to allow citizens to trade with one another more easily, but instead money exists to serve the government, which has the effect that money serves no one. The more the government taxes, the more profits people need to be able to pay the government. Profits is the root cause of inflation. Inflation can occur without taxation, but is unavoidable with taxation. Where money comes from is as