Whether the liberal or conservative economic model is more consistent with Yiddishkeit is debatable.
Note that virtually all the rabbinical authorities in Israel (whether Sephardic, dati leumi, litvish or chassidish) support political parties that argue for more state support for the poor, not less. And Israel is already to the left of America when it comes to welfare and anti-poverty policies. The only people advocating for cutting anti-poverty policies are some secular MKs in Likud.
Re: the Rema, well the poor do pay taxes: income (if they don’t qualify for Earned Income Tax Credit), sales tax (if they buy anything other than food), and property (if they own a house — some do). They pay fewer taxes, but that’s authorized by the Tzitz Eliezer.
Ultimately, I think it comes down to which economic model works better, in whichever impact measures are most important to you. This is a (debatable) empirical question.
Personally, I think the most important thing is that your average person can work hard and get their family’s basic needs met without working such long hours that there is no time for family and Torah study (see Avos 2:2). Europeans work far fewer hours than Americans do on average, and they don’t have to struggle to ensure they have basic necessities like health insurance (which is a real pain here, if you have a job that doesn’t provide insurance and/or you don’t qualify for Medicaid or Medicare). So by that metric, the more left-leaning economic models work much better. Their policies also result in much lower rates of extreme poverty than the US, which is another important consideration (for me, at least).