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by vmception 1848 days ago
US government would never balance its budget even if tax compliance was 100% and the tax rate was 100%.

The math does not check out and the taxes fund nothing except the interest payments on international debt.

The things that were going to get funded will still get funded, because they are funded by the debt issuance and the continued market tolerance for US government debt issuances.

So, no, tax avoidance has practically nothing to do with this. The "roads and schools [and innovations]" argument is particularly weak, because whatever wasn't funded was never going to get funded. The only limit to budget allocations is the market tolerance of the debt and currency. So again - since that market tolerance is extremely vast and expansive given the lack of liquid alternatives - if it wasn't funded, it wasn't going to get funded.

1 comments

> only limit to budget allocations is the market tolerance of the debt and currency

Sovereign debt buyers and FX traders strongly consider a states' ability to collect taxes.

more aptly: the ability of the state to pay its interest now and in the future.

the state is in a balance to avoid a death spiral of its currency: creating more because it purchases less due to market selloff of the currency.

the main point is that it is highly leveraged and tax collection is merely servicing a small single digit percentage of the capital, and therefore the further sliver from tax avoidance is having even tinier percentage of an effect on how what the budget is and could be. the state also has other revenue sources.