"Economy" is a catchall word here. The answer to your question is dependent on your definition of economy.
A traditional economist might define it as "the velocity of money". In a "hot" economy there's a lot of (domestic) spending (and hence selling) going on.
But this definition says nothing about the lot of the average, or below average, individual. If a trillion $ moves from individuals to govt as tax, and the govt spends that tax, then by this definition this is a good economy.
Conversely if you use the word "economy" as a place holder for personal success / improvement, being able to buy a house, afford medical care, buy groceries, eat out, have a solid job with a decent wage, well, high taxes probably aren't great.
If taxes are high, then how the govt chooses to spend the money starts to matter. If it is pumped into domestic production (aka salaries) that can be good. If that production has meaningful long term benefits (like infrastructure) so much the better. Useless spending (like on border walls, ballrooms or silly boats) can have short term gains, but dissolve in the longer term.
A traditional economist might define it as "the velocity of money". In a "hot" economy there's a lot of (domestic) spending (and hence selling) going on.
But this definition says nothing about the lot of the average, or below average, individual. If a trillion $ moves from individuals to govt as tax, and the govt spends that tax, then by this definition this is a good economy.
Conversely if you use the word "economy" as a place holder for personal success / improvement, being able to buy a house, afford medical care, buy groceries, eat out, have a solid job with a decent wage, well, high taxes probably aren't great.
If taxes are high, then how the govt chooses to spend the money starts to matter. If it is pumped into domestic production (aka salaries) that can be good. If that production has meaningful long term benefits (like infrastructure) so much the better. Useless spending (like on border walls, ballrooms or silly boats) can have short term gains, but dissolve in the longer term.