This is something that many people don’t understand. In one way, it should work this way — the higher the tax rate, the more revenue you take in — but it doesn’t. The Laffer Curve is the visual reason why; but the explanation is also quite simple: the more you tax, the more people hide their money; the more you tax, the more they move themselves and/or their money; the more you tax, the less incentive people have to earn money; the more you tax, the less there is to spend; the less there is to spend, the slower the economy goes; the slower the economy goes, the less revenue comes in.
One of the series of books I read through and greatly enjoyed was the Nero Wolfe mystery series, written by Rex Stout (and a few years ago, also made into a series of A&E TV shows). The books were set contemporary to when they were written, with the first one being published in the 30s, I think, and going all the way through the 70s. A recurring motif in several of the earlier ones (probably those written in the 40s and 50s), was the oppressive income tax, and how it squelched the brilliant detective’s desire to take on a case. When the novels were set in late November or early December, it was frequently noted that Wolfe would turn down cases because he was at or near a certain income, and if he earned any more, he would be taxed at a rate of 90% for it, so he figured that 10% of whatever fee simply wasn’t worth it. And that’s true — would you want to do the same amount of work and actually get to keep only 10% of your gross? It’s ridiculous! It’s time to trim the federal budget, so that we can keep more of our money. We are