I make £1 - I get to keep 50p. If I spend $9, the government also gets $9 as I have to pay myself $18 to have the $9 left. They then take $7 0f the $9 in extra tax - they have made $9 + $7.
The logic that your spending 9$ gives the Government 9$ is beyond me - how do you conclude that? Earning $9 sure, but not spending it, that tax has already been paid. Or, equally likely I've lost my last marble.
For example, and ignoring VAT:
If you buy an item for $1 the vendor gets $1, the government gets a % of the vendors profit that he made on that item as tax, perhaps a few pence but that comes from the vendor, not you. Your tax contribution for the $1 you earned to buy it (i.e. $1) has already been paid, as income tax, you're not paying it again!
Your argument would only be valid if you had to pay an extra 100% of face value in tax on everything you purchased in addition to the purchase price, i.e. tax which went straight to the Government. Now, VAT does just that though at a rate of 17.5% so I will agree that while HMRC gets an extra % back in indirect taxation, it's not at 100%.
I only pay myself what I need to live off. If I needed $100,000 a year, I have to pay myself $200,000. Ironically some of what I have to pay for is local taxes, VAT at 17.5%, car tax, tax on flights (I had to do fifty last year) etc etc etc. I reckon the government would get about two thirds from someone on an income of between $100,000 and $200,000.
I don't disagree and I also pay the same taxes, but that doesn't make the cost of petrol $15 any more than it makes the cost of everything else double what I pay for it.
In addition, all I can add for our US members is to echo what others have said; count yourself lucky...it will only get worse.