Comment by solatic

> Tax rates are not the same as effective taxes paid

Correct, but the tax system is nonetheless quite effective at setting behavioral incentives and disincentives. Higher income and estate tax rates incentivize capital being locked up in investments instead (for lower capital gains taxes); those investments put people to work and are subject to Labor negotiating higher compensation. Allowing donations to non-profits to deduct from other taxes allows private individuals (compared to a government bureaucracy) to more efficiently fund social welfare programs, which incidentally, also put people to work in the administration of such programs.

Funding government is not the sole goal of higher taxation rates, but rather, also how incentives in society are shaped.