Not quite. I have covered the Supply and Demand issue (To Tax more is to spend less). Lets look from an equilibrium point of view.
If government spending leads to serfdom, then existing taxes may very well pay for an economy that delivers much less; government promises turning to cheaper scrap. Alternatively, more spending may lead to higher GDP growth, in which case we are happy to pay the cost and still come out ahead. It depends upon the equilibrium conditions of the moment.
In our situation, every extra dollar of government spending reduces the private sector economy by more than a dollar, so future investment in the private sector is dimmed and borrowing costs for government drop.
What makes Uncle Milt correct again is that we have not operated with Congressional multipliers less than one for any long length of time, we eventually return to growth and technology.
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