Funding the Future

Tax does not fund spending


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Most people think tax pays for government spending. It doesn’t. In a modern monetary economy, governments that issue their own currency spend first and tax later.

In this video, I explain the six real purposes of tax:

  • ratifying the currency
  • controlling inflation
  • redistributing income and wealth
  • repricing harmful activity
  • strengthening democracy
  • organising the economy for public purpose
  • Understanding this changes everything about austerity, social security, inequality and public services.

    If we want a politics of care instead of a politics of fear, we need an honest debate about tax.

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    Funding the FutureBy Richard Murphy