What exact problem are you trying to solve? I can think of a lot that this would cause.
Analyze any specific tax policy deeply enough and you’ll find that there is no way to fix something that starts off as unnecessary and harmful.
Analyze any specific tax policy deeply enough and you’ll find that there is no way to fix something that starts off as unnecessary and harmful.
Voting for more taxes on other people does not reduce your taxes.
https://fred.stlouisfed.org/graph/?g=O2ZH
2. Tax collection does not change a governments ability or willingness to incur debt.
3. Government spending may not be related to ‘needs’ of the citizens.
It’s just a collection of organizations and employees. They get promoted based on spending. Effectiveness is impossible to measure.
Monetary inflation builds the potential for price/goods/CPI inflation - whether than potential is realized depends on fiscal policy and the supply response (more redistribution => more inflation - if productive capacity can't catch up, or if we limit supply - for example ESG / anti-oil stance).
2. Governments employ debt because of the political price of raising taxes. Issuing debt is basically taxing savers via inflation over the medium term - it's more "invisible", since the government will eventually have to devalue or default on its debt in real terms (the U.S. has done it twice in the last century - in 1934 and 1971, and it's possible that a third one is coming in the next decade. It's a little trickier since the currency is no longer gold backed, but it's de-facto oil-backed. If oil goes to $10K / barrel (hypothetically), that's as good as US defaulting on its debt as far as foreign creditors are concerned).
3. True, though there are transparency measures that monitor government spending and we have rough measures of effectiveness. Government is to people what the FED is to banks - the provider of needs of last resort. It might not give you the best service or work efficiently, but it will be there when everything else goes bankrupt or refuses to work. There are things that are unprofitable and unenviable to do in a capitalist system - and we rely on the government to do them.
2. You’re assuming that the budget is constant. It is not. Governments employ debt because they can. Governments tax because they can. If anything, the relationship is the opposite of the way you state it. Taxation allows them to take on more debt. Debt forces them to increase taxation.
3. Good theory. It is what I would have believed before spending over a decade in the bureaucracy. It’s neither right nor wrong, but irrelevant to the actual functioning of the system.
I don't think it does presume that. I can want another group to pay their fair share of taxes without necessarily wanting my own taxes lowered.