One argument against using taxation to pay off the public debt is that it will redistribute wealth from people who do not hold bonds to bondholders.

Question

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This argument is true because taxation takes money from everyone, regardless of whether or not they hold bonds, and uses it to pay off the debt held by bondholders. This can be seen as a redistribution of wealth from non-bondholders to bondholders.

One Argument Against Using Taxation to Pay Off the Public