So here we go, essential Modern monetary theory coming up… Taxpayers money is a myth. Taxes fund nothing, the government creates all the money it spends and your taxes just disappear. Discuss.

"So you're saying my hard earned money just gets wiped out? I worked my arse off to feed my family, I paid 20 odd percent of it in tax and they just fucking delete it?"

Actually if you want to be technical you paid way more than 20% when you consider VAT, fuel duty, council tax, stamp duty…

"You're not making this any better."

I'm not trying to. I'm just explaining that 'real world' you're so fond of talking about. Your tax money doesn't go to benefits scroungers, or immigrants, or the NHS, or anyone. It just gets deleted.

"So what's the fucking point then?"

Remember what we said about tax giving money its value? That's still true. Tax creates the demand for pounds. But it also does something else - it removes money from the economy. That's how it controls inflation. Too much money chasing too few goods = prices go up. Tax deletes money, which means less money chasing those goods.

"Right, but my taxes still paid for—"

No. Your taxes paid for nothing. When the government pays someone - a nurse, a teacher, someone on benefits - it creates new money. The money you paid in tax yesterday is gone. The money that nurse gets paid today is brand new.

“But these politicians are always banging on about tough financial decisions and needing to raise taxes to pay for things.”

Yeah I know, politicians lie, who would have thought. This isn't just theory either, it has been demonstrated and reported in academic studies such as by the UCL - "the UK Government creates new money and purchasing power when it undertakes expenditure, rather than spending being financed by taxation from, or debt issuance to, the private sector"  (UCL Bartlett). This IS what happens. Any politician who says they need to raise taxes, or can't afford to spend because they need to balance the books is wrong.

"This is… actually I don't know what it is, but I don't like it"

Yeah. But now you know why getting angry about "your taxes" funding things you don't like is pointless. Your taxes don't fund anything. The government simply creates money when it spends. Of course if you want to get angry about what it spends that money on then go right ahead, they're still your government after all, making decisions that are meant to benefit you. Just not with your tax money.