> It will just remain in the hands of the original earners who will, presumably, spend it according to their own desires instead of entrusting the tax receivers to spend it. Again, the money won't disappear.

Seems like you're a believer in the trickle-down economic model? Unfortunately in most cases it will be moved to a tax haven where it joins a big pile of money that will simply never be spent on anything but the incidental super yacht or a luxury mansion on a private island. Even the government can spend the money more effectively than that.

There are exceptions of course, but we shouldn't be dependent on voluntary acts of philanthropy to get the money invested back into the country that it was already owed to in the form of tax in the first place.