Right but your costs are not reduced by a similar amount. When I purchase things or take out a loan for a personal expense I have to pay that off with post-tax dollars. So I have to earn more money to buy the same things.

In this regard a large tax greatly reduces purchasing power and makes it less worth the trouble.

taxes are fair when everyone gets taxed the same rate. that is logically fair, not emotionally fair. I prefer the former so do most people with half a brain.