> Even if you ignore ALL other tax spending (which is a huge ask) the best possible outcome is $1 in = $1 out. That breaks even at best. The government isn't creating value it's just moving money around.
It is possible to spend money that gets more money back later. Think of investing in infrastructure that creates more economic activity. Imagine how much better the economy grew once we connected the transcontinental railroads and electrified towns. These were huge projects that no one could have funded on their own, but with coordination with all the money from everyone else. I can't think of any other way to coordinate that much money without getting taxes involved.
It is possible to spend money that gets more money back later. Think of investing in infrastructure that creates more economic activity. Imagine how much better the economy grew once we connected the transcontinental railroads and electrified towns. These were huge projects that no one could have funded on their own, but with coordination with all the money from everyone else. I can't think of any other way to coordinate that much money without getting taxes involved.