I think that's a great post and pretty well sums up the situation. We are in a perilously deep hole and unless something changes, it could get really ugly with a downward spiral of increasing tax rates, declining tax receipts, worsening public services, still higher tax rates and tax receipts falling further. You cannot just keep increasing taxes and expect receipts to go up and up. It doesn't work like that.
There IS a way out of this though I think, if any government is prepared to take the bull by the horns. If we accept we can't trim public services costs much (we can a bit with productivity improvements but only in the margins), and we can't keep putting taxes up, then there's only 1 other option and that's borrowing.
The problem is it's already perilously high, and to make matters worse, the government has said it won't borrow to fund day to day spending. But the patient - our economy - is on the operating theatre table with the ECG flatlining so SOMETHING has to be done to bring it back to life, and that means tax cuts and support for businesses. We should court the markets, explaining clearly a well-thought out plan whereby we are to borrow another (say) £100bn as a *short term* measure to get the economy going. The plan will be clearly laid out that this money will be paid back in a relatively short timeframe - say 5 or so. I think so long as that's clearly thought out and there's a clear plan, I don't see why it should spook the markets and push up bond yields. But the BoE and the markets need to be onboard. That's the bit Truss got wrong.
The extra borrowing would be used exclusively to drive business growth: Reverse the NI hike, significantly subsidize business energy costs and to provide grants and incentives. If we can get growth back to 2% or 3%.. even 4% might be achievable - then we can climb out of this hole and tax receipts will start to increase.
But carry on "business as usual" and unless there's some out-of-the-blue world-wide event that dramatically boosts our economy, we're going to continue to spiral downwards.