The tax system is unfair. The top 1% pay around 40% of the taxes and the top 5% pay 60% of all income taxes. The bottom 50% pay less than 3%. If anything, in the name of fairness, many who pay nothing should pay something so at least they have some skin in the game. Currently their only incentive is to live off the generosity of the government. The Federal gov't's role should be limited to national defense and protection of citizens from powerful private organizations that become abusive through monopoly power in commerce, unfair labor practices, and unsafe practices resulting in damage to human health and the environment. But in most cases, the states should have the power to determine their own destiny, and private enterprise should be allowed as much freedom as possible to pursue
their interests.
To answer your question, if taxes become too burdensome, it eventually will provide a disincentive to work and a disincentive for businesses to grow, hire new employees, or even continue in existence.