Your explanations about money and taxes are correct. However, two considerations must also come into play regarding
- money and inflation and
- governmental sovereignty
Taking #2 first, MMT has the mechanics of money creation correct which is similar if not identical to your illustration about money and taxation. In a directly distributed fiat monetary system there isn’t any reason for taxation at all…except for three reasons:
1) sin taxation to discourage unethical actions
2) virtue encouragement via negative taxation/incentives and
3) establishing governmental soveriegnty, because if there was no enforceability by the government…corporations and individuals could simply ignore government policy. So high rates of re-distributive taxation become completely unnecessary and much lower but sovereignly powerful and enforceable levels of directly distributive taxation/incentive keep the system and its agents ethical, honest and rationally focused.
So far as the money and inflation problem is concerned, if one takes rational, beneficial and ethical control of the point of retail sale with a sufficiently high percentage discount/rebate monetary policy that businesses could not game without committing market share suicide and that would mathematically significantly increase everyone’s purchasing power….then you’ve basically implemented the new paradigm of Monetary Gifting and resolved the two most chronic and deeply embedded problems of modern economies in one fell swoop. Social Crediters never really fully recognized the power of the compensated retail discount policy.
Also, Bob is correct that a publicly administered central bank is necessary to have sovereign control of the entire economy, and the innovated and extended policies of social credit along the lines spelled out in my Wisdomics-Gracenomics are necessary to keep the economy based upon and temporally guided/enforced by the policies and regulations of the natural philosophical aspects of the universally resolving concept of grace.
Hopefully today is the last day that a godawful demagogue like Trump is able dominate our political system and the scales will begin to fall from the eyes of his base, but these monetary, financial and economic problems will remain. As a result liberals need to ask themselves how to finally resolve them as per above, because purchasing power has been decreasing for decades, the problems of inflation have not been terminatedly resolved and Finance still dominates….and so the dangers of demagogues with simplistic solutions remain.
If Public Banking and Wisdomics-Gracenomics would integrate their messages so as to benefit both business and the individual that would be an extremely attractive political and economic agenda that could draw heavily from both sides of the aisle.