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Many years ago, I had inherited some money from a relative. Because the relative died abroad, the IRS claimed I owed them 70% (over 75,000$) of the take because I failed to report the money as being from another country. This is on top of the source country having robbed 80% of the net proceeds. Of the close to 1 mm that was inherited, I was left with around 35,000 once all the different thieves were done with it.

When you account for taxes, fees, accounting fees, audits, etc the amount of taxes people pay is easily 75% or more of their take home income.