Is the tax system really a zero sum game? Do you always have to cut tax somewhere and increase tax somewhere else?

Private individuals and businesses use money more efficiently than governments do. People with their own money at risk spend or invest it carefully. Money will do more good for more people in private hands than in government hands. Alot boil back to this. Cut the transfer of wealth. It is inefficient to collect money from the business then give subsidies somewhere else. Like GST credits. The government incurs administrative cost to collect the money. Account for the money and redistribute the money. Cut government programs to assist business grow their business. Cutting tax and letting the business keep what they earn is better. If business profit they keep most of it but if they lose they have to accept as well. Again here if government grants are involved it means administrative fees plus when its not the business’s own money they are not as careful and also the conditions for the grant may not fall in the category of what is best for the business to use. Cut the government. Lesser money is the only real check on the expanding size and scope of the federal government. Lesser government lesser red tape more businesses more freedom for everyone. Big government gets into everybody’s way. It has more mouth to feed then it has to tax the private sector in order to feed the mouths. Then they have too much free time they come out with laws that infringe on our liberty. Like sugar tax. If i want to take sugar its my concern. If i get diabetic it is also my concern. The government need not get involve. At the end of the day cutting back taxes, giving less subsidies, reducing unneccessary government, reducing red tape will benefit us all. While my conclusion to this question would be just charging tax at a lower rate increases economic activity and spending wouldn’t a bigger base while having a lower percent still make up the same amount of tax dollars?

Example

811billion * 20% = 162.2billion

1622billion * is 10% = 162.2billion 


This is proof that GDP is not always the same and it is not a zero sum game. 

Citations: 
https://www.cato.org/publications/commentary/one-bad-eight-good-reasons-cut-taxes

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