TennPaGa wrote:
Saying "spending is a tax" seems more like a trick to me.
OK, it's not really a trick, but to me, it is a statement that is rooted in ideology rather than in fact.
No ideology there. No value statement, no judgment.
It's just logic. If an institution like the state spends a certain amount of money, well, that money must come from somewhere. More fundamentally, if it expends a certain amount of real resources conducting its operations, those real resources must come from somewhere. In this case, they come from what we generally call the private sector. The resources come, that is, from outside the state. The amount of real resources that the state receives from the private sector is the cost of its operations. This amount will be the same as the amount of resources the state expends.
By saying "the spending
is the tax" I am using the word "tax" to mean cost or burden. The total cost of the state is whatever real resources it uses. The state is not able to poof real resources into existence from nothing, so far as I am aware.
Sometimes the total expenditure of real resources may be difficult to determine in money terms, as when unpriced resources are used, for example federal lands, frequency bands, and conscripted soldiers or laborers. So, the single figure of total dollars spent in the budget of a state does not completely account for all its spending. This in no way invalidates the principle.
To review: if the state spends, it must collect. The resources come from somewhere. Not from magic wish-granting poof balls. The state must redirect resources
away the private sector and instead towards its own ends and projects, that is,
into what we call the public sector. Regardless of how that redirection is accomplished -- and there are many methods extant, some quite round-about -- it is redirection nonetheless. Tax, tariff, levy fees, sell monopolies, borrow, or inflate -- it all is a taking, it all must be paid for.
TL;DR: TANSTAAFL.