Taxation is a parasitic relationship. Just like parasites don’t entirely kill their host but rather prolong them for longevity - the government doesn’t tax 100% because that would drain the victim of all funds and kill them.

There is an optimal tax rate on a spectrum which extracts the maximum value for the longest time - and it is always more than what a free market would require.

Similarly, monopolists never set the price so high as to kill the consumer, but keep it abruptly high to leech from them.

-- an excerpt from the Saylor Series Episode 2 - the Rise of Man through the Dark and Steel Ages, its 2-minute version can be found here https://www.2minutebitcoin.org/blog/saylor-series-episode-2-the-rise-of-man-through-the-dark-and-steel-ages-robert-breedlove