That's why it's so important to understand that taxes do NOT pay for spending. When government collects tax money it goes through the SHREDDER! When government spends on infrastructure it PRINTS new money or simply CREDITS bank accounts. Spending and taxes are NEVER balanced. They have no relationship to each other. Taxes set up a demand for dollars. You can tax the rich to set up a demand for dollars and that may be a good policy, but if you tax the rich to pay for spending, that is erroneous. TAXES DO NOT PAY FOR SPENDING.
So now what is the PURPOSE of the GST?
The government does not like the economic activity of small business. GST discourages small business.
The government does not like the poor. GST falls hardest on the poor and on small business. Tends to concentrate and monopolise big business. So that's perfect and well thought out from the ideological perspective of government.
