Taxing and spending
November 21, 2009
I came to this conclusion back when Reagan was president. If taxes are low but spending is high, that means the government is borrowing money or inflating the currency (or both) which are just as bad. The major benefit of low taxes is that it puts pressure on legislatures to spend less.
Government spending means economic resources are being allocated according to political priorities rather than to individual priorities or economic growth. While their are some political priorities that justify that, it needs to be kept to a minimum. Also, the more government spending there is, the more opportunities arise for corruption.