That’s not true. Many companies people at provide them little to no incentive to work harder or better, yet still a lot of people try to do so.

People have an incentive in those cases. To improve themselves so that they can get hired at another company or in an industry with more demand.

Who pays nurses more just because they are good? In a lot of professions rates are set by governments or institutions and there is not enough competition between businesses for wages.

Any private clinic would pay the better nurse more? You can check this quickly on job-listing portals – nurse wages are in the 20000-100000k/year range, so clearly supply and demand as well as qualification are determining it. Which socialist country is it where wages are ceiled by the government?

I guess that depends on what you mean by good, but better credentialed, more experienced nurses do get paid more. Source -- my wife is a nurse.

I can tell you that there is no way I’d be doing what I do if it wasn’t for the money. I’d be developing useless keyboard firmware or some other junk no one but me would care about. It would provide minimal value to the world.

There’s an economic incentive for someone to increase their productivity at every taxation level that is less than 100%, no?

Technically correct, but totally missing the point. There’s going to be a big incremental incentive difference between, say 10% and 90% taxation.

Societies taxing their entrepreneurs at 10 and at 90% are always vastly different. This difference in turn heavily influences every participant’s system of motivations, so comparing these two numbers alone is usually not very helpful

An apt comparison is sharecroppers. Their effective tax rate is close to 100% but they still work hard because eating > not eating.

Sure that’s risky for 100% of population. But for 0.1 percent of population who makes many millions a year, who cares? No one is that special of a snowflake we need to optimize for their productivity. Most of those people are either already workaholics or already retired on a yatch.