Could you please get more specific. Coz your description above
sounds like, to be honest, typical primary school level hog wash -
high on speculation, low on details and formed largely on the basis
of chinese whispers.
I'll consider your points by reference to the UK.
Yes, tax is used in some countries to fund social welfare - like,
inter alia, a health system, heavily subsidised education system
(eg grants for students, lower fees for students and incentives for
students) and as you mentioned things like unemployment
benefits.
Now you say things like
...in these countries, if you are considered underprivileged,
you get money from the govt, for example, if you earn like $200 a
month, the govt will give you like $400 a month so you have $600,
but, if you work twice as hard and earn $400 a month, the govt will
give you $250 a month, so now you do have more money-you have $650
now, but, you have to work twice as hard.
What are 'these countries' you are talking about? I know the UK
has a minimum wage system so you can't be talking about the UK. For
a vague post, you seem to come up with a lot of detail
here...
So if you earn more they give you less, so pple would rather
work half as much and earn $50 less. Actually I feel this is not
healthy. It's creating a not so encouraging mindset on people, and,
those high earners may have negative impression "so what if I work
hard and earn over tens of Ks per month, 48% of my salary will
still go back to the govt to help those who doesn't work as hard,
and or, those who doesn't as much money as I do on further studies
to get good jobs"
- You know, I recall myself expressing that view
during primary school. However, please forgive me because I did not
know how the tax system worked at the time. You see, 48% (in your
example) would refer to any amount earnt after you hit a certain
level. Eg. First 15000 might be tax free, then every $1 after that
you are taxed 20% up till 50000, then maybe every dolalr after that
48%. So no, 48% of your salary doesn't go back to the
government.
Your entire argument there is therefore really not much of an
argument. Well, assuming that your example is based on fantasy of
course...coz I haven;t heard of a developed country that taxes 48%
of your salary...
In short, please be more specific. Thank you.