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I can't figure out the difference between income and payroll.
You hired your friend. From his salary, you pay payroll tax, your friend pays income tax.
Oh so it's like double dipping for the government. And if you count sales tax and corporate tax it's like quadruple dipping or something.
There is a certain amount the government needs for the planned budget. This amount can be collected as one tax, or split into several taxes, or even with a "country monthly subscription for living there" or something. It's easier to create a fair system with different taxes.
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