You say we do not need the rich to finance things, however, planned economics are less efficient than market economics because central management of such a complicated structure is very difficult.
I’d question this one a lot- I agree central planning is bad for a lot of things, but it’s great for infrastructure like roads, water supply, transport etc. I think this bears out in the evidence as well- the USA has suprisingly poor water supply, education and rail transport, despite by some measures being the wealthiest country in the world. Compare this to infrastructure standards on Europe or China.
We could probably argue all day and longer on this, but please at least consider wealthy high taxation countries in Europe as a counter example. At the very least, I think they show a successful alternative to low taxation economies.
I agree that government financing is good for some things, but since most of the economy is run by the market making markets less effective is an interesting decision.
Also, European countries with high taxation do not exist independently, they rely on international capital and financial sector.
I am not totally opposed to taxing the wealthy, but this should be limited by reason.
Ok, one last question, but can you expand on why you think taxation makes markets less effective? I’m not sure I understand why this should be a given?
I live in the UK, and VAT is applied to some but not all goods. It doesn’t seem to me clear at all that, say, cakes (not taxed) exist in a more competitive environment than say, biscuits (taxed)?
They reduce profit, by extension, investment, make domestic firms less competitive to financial institutions, making the economy less productive.
