Government Finance
How do taxes work?
Taxes drive demand for the currency and reduce private spending power — they don't fund the next round of government spending.
The short answer
Taxes drive money demand and dampen spending; they don't fund spending. The currency issuer spends first and taxes second.
Mainstream framing
The government collects taxes and uses the proceeds to fund public services. Higher spending means higher taxes.
MMT answer
Taxes have two operational roles: they create demand for the currency (because tax liabilities must be paid in it), and they reduce private spending power (managing inflation). The currency-issuer government doesn't need tax revenue before it can spend; the sequence is spend-then-tax, not tax-then-spend.
Shareable summary (≤ 280 chars)
Taxes drive money. They don't fund government spending — the currency issuer spends first and taxes second.