Taxes maintain the value of the currency. Back in 1913 the money that people kept was backed by precious metals which have an inherent value. Without that backing a currency’s only value can be found in the demand for it. And if you have to pay your taxes (and settle debts, but that’s a bit harder to enforce absolutely) in the currency on pain of punishment then you are going to demand some of that currency in order to settle. Without that manufactured demand why would you need to do business in the state’s currency, and without the need to do business in that currency why would you demand it? (Obviously there are other factors at play too but that is an important aspect to modern taxation).
Income taxes pretty much only go towards to the interest on the national debt. We're told they pay for services, but from what I understand, they don't.
It's all about having you depart from your hard earned money. Everything from taxes to advertising is made to get you to give up your dough. The new power is through money. The old power is still violence it is used if the money trick doesn't work.
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