system
Given the following post, respond as if you're commenting on Reddit:
human
Eli5 Where does money come from?

I’m 16 and maybe that’s why I’m asking such a dumb question...

Let’s say person A makes 1 dollar. If he gets taxed 20%, he has 0.8 dollars and when he spends that money, it gets taxed even more, and to me it just sounds like money slowly goes to the government. 

Where does money come from...?
gpt
In theory the government creates money. Some of this is in the form of notes and coins - physically created for the government. That's the simple part. What complicates things is that the majority of money these days is electronic and is created by banks, based on rules set by the government. How this actually works can be hard to get your head round.

As for money the government takes via tax. Generally the government spends it. That money goes back out to pay for benefits, pensions, health and social care, police, the army, etc etc.. It goes to all the people who work for the government, who receive money from the government, all the companies that supply the government, and so-on.

So money that the government takes from tax doesn't go out of circulation, it just gets spent again. (Except in very rare cases when governments do reduce the amount of money in circulation, taking money and 'destroying' it.)