How much is too much for a tax rate? How much should a person have to work for the Government?
There is no absolute answer.No simple solution.
One way to think of this is that
too much is when people move to competing jurisdictions primarily because of the tax rates and take their talents or business with them. And partly this is gauged by what you receive for your taxes. Do you get health care as part or is that an added cost? Do you get a decent retirement pension?
There are a lot of low tax jurisdictions in the world, but there may be no way to make a living in those jurisdictions or the quality of life may be poor...
In a certain way, the various world nations and their provinces are competing for populace and industry. Of course its not a fluid market, as there are many factors that make a decision to emigrate one of the most difficult. Certainly taxation rates aren't often a compelling reason for very large numbers of people who make the choice.
People who believe high taxation rates is a deterrent to effort, seem to forget that in periods of high taxation the US often had very expansive economies and increased standards of living. After all, we compete with others taxed at the same rates. And compete for products and services with the same (proportionally) after tax incomes. So, relative to our fellow citizens whatever we earn at the higher end will also have relatively more value within society.
I suppose there is a belief that if the taxation rate is too high, then people simply stop attempting to earn more. They quit working after a certain point. First that supposes that people only work because of the money. There are all kinds of intrinsic reasons people work besides the need to earn a living. Then there is the assumption that if the net reward somehow is proportionally less for the income earned at the top end, that people stop working if they've reached that magic point. That working for only 50 cents (or whatever) on the dollar earned is a reason to stop endeavor.
People make that kind of decision all the time, regardles of the tax regime. Its balancing leisure versus money. Perhaps a higher tax level would seem to be demoralizing this way, but there a lot of high taxation regimes where productivity is very high. So that doesn't necessarily seem to be the case.
And there's a lot of people who pass up more money for better quality of life too.
If this is a non-answer B, I think its because there isn't an answer.
On the other hand, govenrments do have to, eventually, run themselves within their means.