This may be “unpopular opinion” stuff, but I frequently see highly upvoted populist pitches on Lemmy that are just the same; a supposed way of sticking it to the man that will quite obviously be borne by the little guy.

Your local tax system probably works the same.

FWIW globally, there is the issue of “welfare traps”. Benefits for low income people are usually tied to income (or savings). Once income reaches a threshold, these benefits must be replaced with income. So a higher income may result in a net loss.