or does the ownership pass to the state somewhere at some income level?
Folks keep on saying that reducing tax rates from 35 to 30 is a "giveaway" on high incomes. Since the person earned it in some fashion, how does that 5% belong to the state so that they could "give it away?"
It is your money but you belong to a society.
You live in a local community where you have to pay to support schools, police, fire, local roads....
You live in a state where you have to pay for universities, hospitals, highways, bridges, social programs..
You live in a country where you pay for the nations defense, social security, welfare...
As a member of the society you get to elect representatives who decide how those taxes get spent. If you don't like it you can elect someone else or move to a different society