Google Fiat currency

@borealice taxes

@Sh0t don't confuse the poor uneducated American further

I gave the most concise answer possible

Taxes don't have anything to do with it

The taxrate could be 0

Although the people who print the money wouldn't get paid, but that's kinda a side thing lol

taxes have everything to do with his question

the taxes drive demand for the dollar

Wat.

There is no "demand" for the dollar as a trade medium. There's only demand for goods and services and money.

He asked what backs up the value of the dollar, the answer is the government and our common belief in its legitimacy and value. Taxes don't even enter the conversation.

GG @✨Skolander✨, you just advanced to level 6!

I swear talking to Americans about economics is nothing but hell.

Taxes are a major part of the conversation, thats what gives the dollar its root demand

The fact that Americans need dollars to pay taxes is what 'backs' the dollar

they also need to pay rent, food and other shit.

They do, but they can't be compelled to buy that the way they can with us dollar denominated taxes

Moronic answer, that doesn't actually understand the difference between fiat money and the trade medium is.

in this case, the fiat money that is the US dollar is also the world's preferred trade medium

The government doesn't care how you pay the taxes

It sure does, it requires us dollars

if you gave them 1000 euro they would accept it.

they would not

they will just convert it and charge you the fee

```Note: Payments of U.S. tax must be remitted to the U.S. Internal Revenue Service (IRS) in U.S. dollars.```

that's the standard response

cuz they dont wanna have to deal with converting the currencies

Again, demand for US dollars to pay US taxes is what 'backs' the us dollar

we are not talking about the fucking demand

you absolute moron.

that is your answer @borealice

you don't understand the question.

You could just avoid paying taxes, what then, does it suddenly hold no value?

I might, but millions of Americans do not avoid paying taxes, primarily because of their paychecks having automatic deductions

not to mention corporate taxes

irrelevant fluff.

the core issue is what gives the dollar, the currency, its value

Taxes

do you understand the difference between the dollar as a currency, and a stack of printed out 100 dollar bills?

I do