How do income taxes disincentivize people from earning more? It's always better to make more money than to make less, even if you're paying a percentage of it to the government (or whomever).
Earning more usually involves working harder, longer, and/or taking more risk. Taxes reduces the reward for doing these things, so people are less likely to do them. Everyone would love to earn more if the extra money just drops from the sky, but that is not how the world works.
njarboe|5 years ago