Comment Re:Good! (Score 0) 619
Taxes real have four purposes for the federal government. or any other sovereign fiat currency owner.
The first two purposes are similar, namely to manage inflation and create a base demand for currency. You do those with general taxing and failure to do it leads to inflation and a devalued currency.
The third purpose is to punish externalities. You could outlaw things instead, but that is a very blunt solution. It is better to punish excessive usage via taxes. The gas tax is one such tax. Failure to properly implement these taxes makes the society as a whole worse off thanks to people exploiting externalities.
The final purpose is to ensure money circulation. This is done via wealth, land and progressive taxes. Failure to properly do that forces the government to issue more and more money as the existing money keeps accumulating in the top 1%, Since most modern countries use a bond system, that is equivalent to subsidizing the top 1% and going into an ever increasing debt.
Oh, and as technology improves, the return on capital will as well, causing money to accumulate upwards even faster. The most extreme example is when one person owns all the capital and can press a single button and produce enough for the whole population. In that case, that person will have to be taxed at nearly 100% if you want to keep the economy functioning.