Taxes Encourage Frivolous Spending Business expenses reduce the level of taxable income. Thus, marginal business purchases become more attractive because of their impact on taxes. The result is that businesses buy things they don't really need. Any sort of income tax will encourage frivolity. The best, most productive levels of spending and investment can only be determined in a free market.
Taxes move behavior away from productivity, toward wastefulness.
If you earn a dollar, you get to keep about 50 cents. At some point, working more doesn't making sense. Some enjoy more leisure. Others work in the underground economy, thus creating a bifurcated society. To experience independence, one must be able to choose how to spend the fruits of one's labor.