> Our currency isn't backed by tangible assets like gold anymore. > Once we dropped the gold standard, the rules changed.
And that's exactly why the government must levy tax - it gives the currency value. Now that the USD isn't based on a gold standard, the only way to give it value is to create demand for it. The US government does that by levying taxes that must be paid in USD - this creates a situation where the USD has value because it's the only thing that can be used to pay US taxes.
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