It's too bad that so many journalists continue to use the term "taxpayer dollars" when referencing how the Federal government funds its expenditures.

Logically, legally, the U.S. is the sole issuer of its currency, the dollar. Therefore, it never depends on revenue per se to spend. Until the Federal government spends its fiat currency there are no dollars in the economy with which to pay taxes and buy Treasury securities.

All the Federal government needs to complete the act of spending is an appropriation. It is illogical and inefficient for the Federal government to retrieve and then reissue its own liabilities. It simply issues new I.O.U.s. That's what each dollar is, an I.O.U. which is cancelled when taxes are paid. Those tax revenues are destroyed.

Too many "thought leaders" use the false premise that the government must manage its finances the way a family, firm or state does. Wrong. None of these entities issues its own currency. They are currency users and must have income/revenue to avoid penury/insolvency. That's the difference between being monetarily sovereign and non-monetarily sovereign.

The first link defines monetary sovereignty and the two following links present the operational process through which U.S. dollars are created by fiat, spent with Congressional appropriations and destroyed through taxation:

1. http://en.wikipedia.org/wiki/Monetary_sovereignty

2. http://neweconomicperspectives.org/2014/01/diagrams-
dollars-modern-money-illustrated-part-1.html

3. http://neweconomicperspectives.org/2014/01/diagrams-
dollars-modern-money-illustrated-part-2.html

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