Conventional wisdom reinforces the notion that we could not exist without all the economic good created by the state. But in reality, a heavy tax burden is hurting society and harming the economy by reducing personal incentive to earn, save and invest. Taxes have distorted incentive, and therefore have distorted the market economy. One of the great lessons of history, learned from the economic collapse of communism, is that labor and production cannot be sustained without adequate personal incentives. Compensation must be in direct proportion to labor and risks.
Incentives are the bedrock of the free enterprise system.
And the free enterprise system, coupled with the protection of property, is a bedrock principle of America's success. The state takes its cut from labor, production and consumption. First, let's examine the basic tax on your income. Add to that, the employer's matching Social Security taxes that are ultimately paid by the employee, and it now takes a huge bite out of every paycheck. With what is untruthfillly referred to as after-tax dollars, you are then taxed on consumption.