FEDERAL TAXES HAVE TWO MAIN FUNCTIONS: 1) THEY SERVE TO MAINTAIN THE CURRENCY’S VALUE, SINCE TAXES CAN ONLY BE PAID IN DOLLARS AND 2) TAXES (AND TAX CUTS) CAN BE USED TO CONTROL THE MONEY SUPPLY, OR TO REDISTRIBUTE MONEY WITHIN THE ECONOMY. BUT I'D ALSO ADD A VERY IMPORTANT 3RD: TO PREVENT ECONOMIC INTERESTS FROM BECOMING SO OVERWHELMINGLY LARGE THAN THEY TAKE OVER THE POWER OF THE STATE THAT IS SUPPOSE TO REGULATE THEM.