re: On a dollar basis, taxation does not hurt nor benefit an economy

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The vast majority of taxation goes, eventually, into the pockets of people that will spend it.( people on state aid, government employees, etc). This money eventually goes right back to the businesses that pay for it.

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It is a net zero on the functioning of the economy. If the taxation was not there, a firm will have the money. If the taxation is there, a firm will lose the money for a short period of time, but will gain it back through consumers.

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