A) I am aware, but since I'm not so familiar with the way your government's finances are run on several levels, I can't really comment (as in, I don't know which services are paid by which level, etc.)
B) didn't say high, I said highER
C) Need may have been the wrong choice if words, but the point remains that the workers are prepared to do a certain job for a certain wage. If they keep less of the wage, they'll want more for the same job, or fewer people that are qualified will want to do the job. Or, to put it in supply and demand terms: say you have a demand for cheese, and a supply, they meet at a certain price. If the price remains the same, but the package shrinks because mice eat bits of it (so you get to keep less), you will have fewer customers who are prepared to pay that price. So, either price goes down, or the package size has to increase to compensate what the mouse eats, or there will be fewer customers (or of course a combination). Replace cheese with netto wages, the price with labour, and mice with the government (seems appropriate :p ).
Of course the demand will be pretty inelastic, but you are talking about half your country, so the effects will be big.
My point was that the argument was about not paying income tax, and you shifted it into welfare. That 47% doesn't pay taxes is a progressive taxing issue, wealth redistribution, not welfare or bloated government. It's not the.same.
Also your last point is stupid, because living standards and price indexes are also wide apart. and if you think that getting on fine with slightly lower wages is okay, I'm sure you don't mind extra tax for the super wealthy. After all, billions manage just fune on wages far, far, FAR lower than them ;)
D) I never said that. Taxes are necessary, but should be neither too high nor too low. The discussion is about what the right level is, and in this discussion, how to spread it among the population. Also, if you say lower for everyone, that seems somewhat awkward after saying you want to raise them for 47% (:

