Comment by mananaysiempre

Most suggestions of this nature fail to explain how they will deal with the problem of people just seeing there’s no point in trying for more. On a personal level, I’ve heard people from Norway describe this problem for personal income tax—at some point (notably below a typical US senior software engineer’s earnings) the amount of work you need to put in for the marginal post-tax krone is so high it’s just demotivating, and you either coast or emigrate. Perhaps that’s not entirely undesirable, but I don’t know if people have contemplated the consequences of the existence of such a de facto ceiling seriously.