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

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Where is the money going

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I think I have an idea where it goes. It goes to banks or to other investments. Banks pay interest to investors but not usually enough to counter inflation to any substantial degree. However, for every dollar the bank takes in and holds in reserve, it can borrow $9 from the Fed and loan it out with interest. So it's a pretty good deal for the banks. Banks need to make money and they promote economic growth.

However, the Fed gets its money by printing digitally or on paper like Monopoly money at no cost to them.

And that's another topic.