You cannot isolate taxation from a discussion of spending and, especially, borrowing. In modern history there has never been a time when Government borrowing has been so cheap. True borrowing increases debt but if servicing debt costs virtually nothing then expanding deficit financing is responsible.
The National finances are not comparable with those of a household – or a business for that matter. Restricting the money supply when interest rates were high had its merits. But when rates are close to zero the monetarist case fails.
Increasing tax in a time of unprecedented economic threat – the double whammy of COVID and Brexit – throws petrol on the fire of economic uncertainty. At a simple level taxation is a limiting factor on expenditure and therefore on recovery. Growth is created by consumption and that is restrained by higher taxes.
Over the long term balanced budgets are a reasonable goal. But as in the 1930s spending an economy’s way out of recession in the medium term would work – and today at modest servicing cost. A major public expenditure initiative on healthcare facilities, transport, education and infrastructure is a better option than increased taxation. Time for Keynes not Thatcher.