MMT Theorists! Please Identify the Federal tax that the is imposed on us that makes us go seek out dollars?

Question

MMT advocates say that the issuer of our money(Fed gov.) taxes us, and that tax can only be paid in dollars and that is how they get people to go earn dollars. Can you please identify the tax that the federal government imposes which makes me go collect dollars? The only tax I can think of that would continually make me have to go search out dollars is property tax which is not a federal tax and if I was homeless would not make me go get dollars. Please help me with this disconnect. It seems that theoretically I could barter for everything if I wanted. I only pay federal tax after I work,  I don't work for dollars because there is some tax I need to pay to federal gov. Thanks

Amy · Accepted Answer

You are correct that the only federal taxes most people interact with are on income, whereas it is your state (and sometimes city) that taxes property and sales. however, barter counts as income as if you had bought one item and sold the other in dollars.  
You could set up an entirely self-sufficient farm, never exchange goods with other people, and thereby avoid federal taxation.

mercedes · Answer

If you are paid in pesos you have to convert it to dollars and report that.

Slickterp · Answer

You could barter for everything you wanted....if you lived in just the right place, which is generally not the US any more.

Anonymous · Answer

Incorrect.

Value of barter transactions is subject to federal income tax.

https://www.irs.gov/newsroom/four-things-you-should-know-if-you-barter

MMT Theorists! Please Identify the Federal tax that the is imposed on us that makes us go seek out dollars?

Trending Questions