The theory is that the government takes the extra money and uses it to create programs that provide or help people find jobs.
Of course, the government is wildly inefficient at this process, and "the most affluent" promptly take tax avoidance steps, which quickly does away with most the extra money anyway.
The entire point is to gradually create a system in which no one can survive by “playing by the rules”. Once everyone can be charged with some kind of crime no one will dare speak out. Tyrants don’t want to hear it. Once the peasants are “docile” the tyrant is much more secure. Randomly slamming folks here and there keeps folks quiet. The tyrant and his thugs don’t need to waste effort “investigating” because they can rest assured that charges can be brought against anyone.