Do we imagine that fiat money has value? Since the currency is no longer backed by a hard metal, we must deduce that its value (if such exists) is derived from the power or authority of the Government. If the Government has the ability and willingness to demand payment in a fiat currency, then it could be from that source that the value is derived?
And yet, for what reason would the Government want to make us pay them in a fiat currency if it has no intrinsic worth, eventually we will be very willing to pay them what fiat currency we have (when people realise that it is worthless) because it is no loss to us. What use is it to the Government? The Government would be wasting its time demanding a payment in worthless money.
Even if (the value of) money is derived not from taxes, but from rent, or property taxes, the same applies. Why would they demand payment of fiat currency, even if in exchange for access to a Government property? Does the rental income derived from Government tenants (those who live in Government accommodation) give rise to the value of fiat currency? Surely not because why would that make it valuable, it is purely abstract...
Unless we think fiat currency is magical, then why would it be valued? Why would someone want to exchange their labour for fiat currency from the Government? Does the Government want fiat currency to pay for its own accommodation?
Not even property taxes make the fiat currencies have value.
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