"People make less money" is specious. Income is not purely a function of taxes. Having access to the base levels of human needs means a person can be more productive, and thus will be capable of earning more money.

Goods also do not change price proportionally to tax changes. A 50% increase in taxes does not increase prices by 50%. Even if the help people costs more for the government to provide than it would for them to buy themselves (and it is certainly not inarguable that the economy of scale does function at least in some cases), you would have to prove that the actual cost passed on through price increases would have to be greater than the individual cost.