Hi Keith. Let me ask you about one more possible reason for taxation .. income redistribution.
As you are well aware we have a real issue these days with the lack on money velocity in the economy, which forces us to sell ever more treasuries to support economic growth. As I see there are two ways to expand the economy (IE create economic growth) .. 1. sell more treasuries to increase the money supply (creates debt) .. or 2. Increase money velocity (increases activity without debt, even increasing tax revenues).
You could add in trade/external money flows as a third factor but I feel that’s fairly minor in most cases and pretty stable as well. Technically, in our case here in the US money is flowing OUT of our economy for tax havens and corporate investments in other parts of the globe, etc.
Anyway, without income redistribution, as is possible with taxation policy, eventually most money flows to the top of the income brackets given the positions of power they hold. As money velocity decreases debt increases because you have to grow thru treasury sales which adds to debt. The inevitable pattern is that economic collapse from lack of consumption demand creating a contracting economy that left to it’s own devices would implode.
Do I have this right? I think I do.