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High taxes by themselves do not cause problems. Only high taxes combined with incompetent or corrupt governance. The idea of tax and spend in itself isn't an evil idea, it just appears that the US kind of sucks at it.

Many of the most developed countries in the world (Denmark, Sweden, Belgium) have exceptionally high taxes and do exceptionally well for themselves.

http://en.wikipedia.org/wiki/List_of_countries_by_tax_revenue_as_percentage_of_GDP