Despite all the free market rhetoric, the simple reality is that capitalism can’t function without a strong state, including one that steps in to make up for the continuous failures of ‘the market’.
Often this requires all kinds of taxes. Often these are hidden by not being direct taxation like income tax – they are things like, in NZ, GST, tax on petrol, cigarettes and so on. Other times and places they come in a more direct tax form, such as water charges.
In this country, the government has a bunch of levies too, driving up the prices of goods that are especially consumed by workers. See our article on GST and tax policy: here.