Tax Revenue on a Dollar Bill?

Yznhymr · 06-03-2007, 08:14 PM

This is something I have never been able to deduce, and to be honest, the Fed Gov't probably doesn't want the average Joe to know this, but...does anyone know how much revenue is generated for each dollar bill created by the Treasury? Is it something like $200 in taxes for the average life of a dollar bill? Is it more? Looking for an educated answer here.

PS. THE LIFESPAN OF MONEY: The average life of a dollar bill is eighteen to twenty-two months. Five dollar bills last about fifteen months, with twenties remaining in circulation for two years. Ten dollar bills have about the same lifespan as singles do, and the larger denomination bills can last up to eight years.

Griff · 06-03-2007, 08:47 PM

I have no idea. UT is pretty smart on this stuff. You know what's neat? We watched Cinderella Man tonight. My girls are in middle school and started to pepper me with questions about the depression and our family. We got into debt and monetary policy. Kids are freaking bright. They asked the questions that needed asking. I explained how my anti-debt madness makes little sense now while the Fed is devaluing the dollar and how we're in kind of the opposite situation from the depression when money was too tight. I explained how my Grandfather went into the depression without debt or cash but was able to feed his family and pick up a lot of land as the depression rolled on.

Undertoad · 06-03-2007, 09:27 PM

I don't know if you can calculate the tax revenue of your average dollar, because there is in fact a massive argument over how much actual money is "out there". And with electronic funds, whether physical currency even counts any more.

How much money in dollars is out there:

M0, counting only currency: about $80 Billion
M1, counting checking accounts: $1.4 Trillion
M2, counting savings accounts, CDs, money market accounts and Paypal tip mug accounts: $7 Trillion

Meanwhile the annual fed receipts are around 2.4 Trillion per year.

Yznhymr · 06-03-2007, 11:38 PM

Seems like this problem would be a good doctoral thesis for someone. My math are on the engineering side, and not financial, even though I picked some of that up in grad school.

06-03-2007, 08:14 PM	#1
Yznhymr the crowd goes wild! Join Date: May 2007 Location: USA Posts: 663	Tax Revenue on a Dollar Bill? This is something I have never been able to deduce, and to be honest, the Fed Gov't probably doesn't want the average Joe to know this, but...does anyone know how much revenue is generated for each dollar bill created by the Treasury? Is it something like $200 in taxes for the average life of a dollar bill? Is it more? Looking for an educated answer here. PS. THE LIFESPAN OF MONEY: The average life of a dollar bill is eighteen to twenty-two months. Five dollar bills last about fifteen months, with twenties remaining in circulation for two years. Ten dollar bills have about the same lifespan as singles do, and the larger denomination bills can last up to eight years. __________________ "The pride system tends to intensify the self-hate against which it is supposed to be a defense, since any failure to live up to one's tyrannical shoulds or of the world to honor one's claims leads to feelings of worthlessness." Bernard J. Paris, Ph.D.

06-03-2007, 08:47 PM	#2
Griff still says videotape Join Date: Feb 2001 Posts: 26,813	I have no idea. UT is pretty smart on this stuff. You know what's neat? We watched Cinderella Man tonight. My girls are in middle school and started to pepper me with questions about the depression and our family. We got into debt and monetary policy. Kids are freaking bright. They asked the questions that needed asking. I explained how my anti-debt madness makes little sense now while the Fed is devaluing the dollar and how we're in kind of the opposite situation from the depression when money was too tight. I explained how my Grandfather went into the depression without debt or cash but was able to feed his family and pick up a lot of land as the depression rolled on. __________________ If you would only recognize that life is hard, things would be so much easier for you. - Louis D. Brandeis

06-03-2007, 11:38 PM	#4
Yznhymr the crowd goes wild! Join Date: May 2007 Location: USA Posts: 663	Seems like this problem would be a good doctoral thesis for someone. My math are on the engineering side, and not financial, even though I picked some of that up in grad school. __________________ "The pride system tends to intensify the self-hate against which it is supposed to be a defense, since any failure to live up to one's tyrannical shoulds or of the world to honor one's claims leads to feelings of worthlessness." Bernard J. Paris, Ph.D.

06-03-2007, 09:27 PM	#3
Undertoad Radical Centrist Join Date: Jan 2001 Location: Cottage of Prussia Posts: 31,423	I don't know if you can calculate the tax revenue of your average dollar, because there is in fact a massive argument over how much actual money is "out there". And with electronic funds, whether physical currency even counts any more. How much money in dollars is out there: M0, counting only currency: about $80 Billion M1, counting checking accounts: $1.4 Trillion M2, counting savings accounts, CDs, money market accounts and Paypal tip mug accounts: $7 Trillion Meanwhile the annual fed receipts are around 2.4 Trillion per year.

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