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Aside from the fact that there's a subjective definition problem here (how do we decide what people "need"?), I think this an unrealistic view. By this definition, every government that has ever existed or ever will exist is a "bad" government because no government can ever tackle every single problem 100% of the time. Many problems are extremely difficult to solve (e.g. global warming), and others simply cannot be solved without creating other problems. For example, people "need" access to healthcare, but there's essentially an unlimited amount of money you could spend to keep improving healthcare (e.g. opting for increasingly expensive treatments with diminishing returns on health outcomes). The more money you allocate to healthcare, the less you have available to spend on other things that people "need". Sure, you can tax more up to a point, but eventually that tap runs dry and you're forced to reallocate existing resources. As another example, people "need" criminals to be punished in order to be able to live in a safe a crime-free society. People also "need" to not be put in prison when they are innocent. But you can never be 100% sure that a convicted criminal actually committed the crime. Locking up criminals implies by necessity that you will also lock up some innocent people. No government can solve both of these problems simultaneously which means they are all "bad". Even the most competent "good" government ultimately has to select among which "bad" things it is going to allow to continue and which it will solve. |
Since the 1980s, we have been consistently taxing less. If the tap is dry, it isn't because of over-taxation - it's because there's a reservoir of wealth hoarded by the relatively few.
A even cursory glance at the trajectory of wealth distribution will make that clear.