It's simply pointing out that taxation of economic activity is detrimental to the state, not that taxes are evil. This should be avoided as much as possible unless truly necessary.
The state can still tax in two ways, taxes on undesirable negative extremity such as products that give you long cancer, and unreproducible privileges. I listed those examples. There may be ground for taxing extreme wealth but I want to see extreme inequality fixed first.
I am not even disputing that the government spending encourages economic activity, but we should at least not shoot ourselves in the foot only to heal the foot with another hand.
I am advocating for the interest of the state.
Taxes on income or capital inherently reduce income and capital. Ditto for sale taxes, which reduces transaction volume.
This is bad for the economy and ultimately reduce our tax base.
About the only thing that doesn't happen is for non-reproducible privileges such as land, intellectual properties, the electromagnetic spectrum, etc.