What's better: unlimited tax rate and optimal welfare or optimal tax rate and the possible welfare?
And when do we stop increasing taxes to maintain the optimal welfare? Or we never stop increasing it because the best thing for a society is having a lot of "free stuff"?
If not free stuff, at least some critical facilities to be made available at concessional rates for the benefit of low-income people should be there in any welfare state. For meeting that purpose, some amount of playing around with taxes cannot be avoided.
Any increase in tax rates in any segment of economy will definitely create opposition from that segment. (For example, if you increase the tax rates for computers, all the computer related industries will oppose it). But Governments have to strike a balance and it is an unenviable task indeed!
but do you have to stop taxing at some point, whatever facilities you have (and you don't), or is it better to tax unlimitedly to give people everything they people ask for?
I don't understand what you mean by "stop taxing at some point". Taxes will always be there to run the government. Without tax collection, how will the Government get money for its infrastructure, staff salary, developmental projects, defense etc?
Maybe I didn't express well: should we have an established tax burden, for instance, the government decides that it can't be superior to 30%, and gives the benefits possible with that, or that people must have the benefits no matter how much taxes
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