If BIG Centralized Govt was the answer,,,,,,,we would be typing on NK laptop, driving Cuban cars and eating at Venezulan Chimichanga fast food conglomerate. USA creates and produces because you can get rich doing it. No one does anything when Govt keeps it all. If I invent a car that drives over traffic I want massive cut of it or I am not going to do it so the Govt can retire better faster.
If the tax rate were 0%, the federal government would collect 0 dollars.
If the tax rate were 100%, the federal government would still collect 0 dollars because who would be stupid enough to create money?
So the correct rate is somewhere in between
At what point do the wealthy say...I don't want to make money anymore
They will always have the desire to make money, they just may not make it in this country anymore.
But forget about them. What about the people that were thinking of trying to become successful in life? What about the person(s) who may have been thinking of opening up that small business or make major investments?
Even the owner of Subway Sandwiches stated he would never dream of opening up a restaurant today yet alone a franchise. With all the regulations, taxation and red tape that we now have, he would have just assumed it would be a lost cause because any profit would have been eaten up; no pun intended.