Mises's law

Mises's law states that when government tax rates on wages increase, people tend to work less because higher taxes reduce the reward for working. As taxes go up, individuals may choose to work fewer hours or not work at all, leading to a decrease in overall economic productivity. Essentially, higher taxes on labor discourage work effort, and conversely, lower taxes can motivate more work and economic activity. This concept highlights how taxation influences people's decisions about their labor and economic contribution.