1. The higher the labor tax rate, the fewer people will work If higher tax rate pays for better infra and healthcare, more people are likely to work. 2. Highe

1. The higher the labor tax rate, the fewer people will work If higher tax rate pays for better infra and healthcare, more people are likely to work. 2. Higher labor tax rate makes for less efficient economics because workers will prefer lower-paying (less stressful) jobs. Isn't labor tax progressive, so bottom earners do not pay a high rate. Higher paying job might have more stress but it's offset with more disposable income and there is strong incentive to invest this disposable income into lowly taxed capital gains setup in the absence of which either people will hoard this money (where it sits doing nothing or hold onto worse performing assets) or spend it ( increasing inflation (which isn't good for economy) 3. Wage tax brackets are not indexed for inflation. Yes, for higher wage earners there is strong incentive to purchase stocks/real estate to enjoy lowly taxed capital gains.