State and local governments certainly need tax revenue to fund themselves. But our federal government does not. The US government controls the dollar, prints our currency, and can create all it wants. Federal taxes are used to pull money back out of circulation to keep the system in balance, so that the value of the dollar isn't diluted. Not paying federal taxes would eventually create a situation painful for everyone. If the feds keep up spending, the dollar becomes worthless with too much money in circulation. They cut spending to try to keep the value up, then large chunks of the economy grind to a halt. Neither situation is good. If everyone's faith in the value of the US dollar falters, the economy here falls apart. The wealthy can partly weather it, but the middle class and poor will be screwed.