Consider a series of transactions for a certain amount of money. Each transaction has a tax cost, that reduces that “certain amount” of money. On average, six transactions return all of that “certain amount” of money back to the treasury/ per Krugman.
Consider a series of transactions for a certain amount of money. Each transaction has a tax cost, that reduces that “certain amount” of money. On average, six transactions return all of that “certain amount” of money back to the treasury/ per Krugman.
Taxes don’t take money out of circulation. The government spends that money.