>>It isn't. Government has no need of it. Taxes are essentially shredded and deleted.
That is not what happens to tax revenue. I recommend you look at a government budget, and see the source of much of the money spent.
>>If you tax employment directly, private firms offer fewer jobs because there would be insufficient money in circulation to employ everybody (wages are insufficient to purchase output due to the tax take). The public sector then hires those who can no longer get jobs in the private sector.
Private firms don't offer fewer jobs when you tax employment. They offer less for the jobs they offer when you tax employment.
Government can hire people because it can offer wages competitive with those provided by the private sector, and it can offer those wages because of the funds it acquires through taxation.
Governments have no need to tax employment to hire workers. This is trivially shown by jurisdictions with no taxes on employment and many government workers.
>>Government is largely service based rather than goods based. What it needs is people.
Abstractly, people need land, so government can trade access to land for services rendered for the public, i.e. for employment with the government.
That is not what happens to tax revenue. I recommend you look at a government budget, and see the source of much of the money spent.
>>If you tax employment directly, private firms offer fewer jobs because there would be insufficient money in circulation to employ everybody (wages are insufficient to purchase output due to the tax take). The public sector then hires those who can no longer get jobs in the private sector.
Private firms don't offer fewer jobs when you tax employment. They offer less for the jobs they offer when you tax employment.
Government can hire people because it can offer wages competitive with those provided by the private sector, and it can offer those wages because of the funds it acquires through taxation.
Governments have no need to tax employment to hire workers. This is trivially shown by jurisdictions with no taxes on employment and many government workers.
>>Government is largely service based rather than goods based. What it needs is people.
Abstractly, people need land, so government can trade access to land for services rendered for the public, i.e. for employment with the government.