Suppose you earned an annual gross income of $60,000. Assume deductions and income tax total 25% of the gross amount, so net income works out nicely to $45,000. Furthermore, you pay 15% tax on every dollar you spend.

Now, let's do some math. Since every $1.00 you spend, you must pay 15% tax which means each $1.00 you spend is actually $1.15. Although your net income is $45,000, you don't have $45,000 to spend - each $1.00 you spend is actually $1.15. So you really only have $45,000/$1.15 = $39,130.43 to spend per year, or roughly 65.22% of your annual gross income! In other words, more than a third of your hard-earned money goes to the government!

(p.s. 25% is highly optimistic, 32% is more reasonable)