The math is easy. If you allow investors to start new businesses and employ people you will have more incomes to tax. You will make more revenue marginally taxing the middle class than heavily taxing the upper class. If you heavily tax the rich you create incentives for them to do less with their money and not invest or start businesses that employ others.

Yet politicians find taxing the rich (or all the rich who don’t show proper respect by lobbying and donating to their campaigns) tempting. This is because the simple knowledge that one has power is more attractive than financial improvement. The “rich” are a power in society. By punishing them through taxes, the politicians prove to themselves that they are more powerful. Better to lose money than to lose power.

The state isn’t even moral enough to be a parasite.