[DemolitionRed]

Originally Posted by The_Hogfather

Thanks for the links, at the very least they make an interesting read. One of the arguments he makes for NHS spending (the staff will put the money they receive into the economy) is similar to one I make against high taxes - people have money in their pockets, they spend it, so money is raised through VAT and business taxes.

TS has mainly answered this.

The problem with taxes is, the higher earners are putting their money into tax havens. Every pound of tax money that gets wheedled away in offshore accounts (tax avoidance) is a pound down in our economy. Tax avoidance in this country is massive and no amount of the small earners tax contributions and spending can cover what's being lost. What we are presently doing is subsidizing what the tax avoiders aren't paying. Too little tax and we have to print more money to ward off deflation. Higher taxes can cause inflation. Its a very fine balancing act.

Your right, tax balances our economy, without tax they couldn't print money because its an intrinsic part of how our economy works.